Subsection 149(1) - Miscellaneous exemptions
Paragraph 149(1)(a) - Employees of a country other than Canada
Administrative Policy
14 January 2014 External T.I. 2013-0510061E5 - Foreign doctors working in Canada
Non-resident doctors, who come to Canada to participate in post-graduate residencies and sub-specialty fellowships at various Canadian medical...
Paragraph 149(1)(o)
Administrative Policy
22 December 2021 External T.I. 2021-0914081E5 - RPP in-kind distribution
After indicating that where a registered pension plan trust made a distribution-in-kind to a member, the resulting inclusion of the distributed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 52 - Subsection 52(1) | s. 52(1) applied to give full basis to a member receiving a distribution-in-kind of RPP property | 132 |
Paragraph 149(1)(c) - Municipal authorities
See Also
Laval Technopole v. Agence du revenu du Québec, 2018 QCCQ 6352
Various companies in Quebec whose function it was to promote commercial development, or cultural, sporting or tourist activities, in their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(3) - Fully exempt interest - Paragraph (a) - Subparagraph (a)(iii) | traditional common law tests of Crown agency applied in determining whether companies were agents of Canadian municipalities | 282 |
| Tax Topics - General Concepts - Agency | 192 |
Administrative Policy
23 June 2020 External T.I. 2020-0848441E5 F - SSUC - Entité déterminée et institution publique
In response to a question as to whether an “organization” that was an inter-municipal authority held by four regional county municipalities...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity | an entity may be an eligible entity for CEWS purposes if it is not a public institution | 87 |
3 June 2020 External T.I. 2020-0846831E5 - CEWS - Public institution
In the course of a general discussion as to whether a registered charity would be excluded from being an eligible entity by virtue of being a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity - Paragraph (c) | ruling not provided on public institution exclusion/general discussion | 147 |
10 December 2014 Internal T.I. 2014-0533151I7 - Qualified Donee - XXXXXXXXXX
A Park was established to encourage an appreciation and use of natural and recreational resources, was authorized under its constituting...
2014 Ruling 2012-0473041R3 - First Nation - Limited Partnership
A First Nation is governed by an elected chief and band council, has passed by-laws respecting zoning, health and emergency measures, operates a...
2013 Ruling 2012-0472821R3 - 149(1)(c) Ruling
The Council, which is a governing body made up of the elected chief or other authorized designate (e.g. tribal chief) of the Band Council for each...
11 June 2014 Internal T.I. 2014-0521411I7 - 149(1)(c)
In the course of a general discussion and before indicating that certain agencies and boards likely did not qualify, CRA stated:
The CRA's...
2013 Ruling 2013-0488661R3 - Indian Band -Public Body & Function of Government
An Indian Band governed by an elected chief and band council, which provides a wide range of listed health, social, educational and economic...
12 August 2013 External T.I. 2013-0498891E5 - public body performing a function of government
CRA confirms that 2009-0306281I7 and 7 March 2013 Memorandum 2011-0428491I7 continue to represent its position on s. 149(1)(c).
7 March 2013 Internal T.I. 2011-0428491I7 - Paragraph 149(1)(c)
A municipal body is typically considered to be a body established or exercising a power under a municipal act or a similar statute of a province...
2012 Ruling 2012-0445071R3 - 149(1)(c) Ruling
On behalf of a First Nation body, the correspondent sought tax-exempt treatment for the following:
36. The First Nation is currently negotiating...
2004 Ruling 2004-008032
S.149(1)(c) would apply to exempt income allocated to a First Nation band on a limited partnership interest held by it in a partnership engaged in...
2004 Ruling 2004-006020
Ruling that a First Nation would be considered a public body performing a function of government in Canada, so that income attributed (under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | 52 |
4 August 1995 External T.I. 9519925 - IS AN INDIAN BAND COUNCIL A CANADIAN MUNICIPALITY?
"Indian band councils do not qualify as ... municipalities ... . They may, however, depending on all the circumstances, be a 'public body...
92 C.R. - Q.36
Re Whether an Indian band council qualifies.
Articles
J. Peter Ranson, "The Evolution of Aboriginal Tax Exemptions: The Past, the Present and the Future", 2005 Conference Report, c. 24.
Sara K. McCracken, "Municipal Corporations: One Option for First Nations Businesses", Business Vehicles, Vol. VI, No. 3, 1999, p. 2406.
Paragraph 149(1)(d) - Corporations owned by the Crown
See Also
Nova Scotia Power Inc. v. The Queen, 2002 DTC 1432 (TCC)
A corporation ("NSPC"), which was described in s. 4 of the Power Corporation Act (Nova Scotia) "as agent of Her Majesty in right of the province",...
Otineka Development Corp. Ltd. v. The Queen, 94 DTC 1234, [1994] 1 CTC 2424 (TCC)
Two corporations carrying on business for profit that were owned by an Indian band were exempt under s. 149(1)(d) because the Indian band was a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) | distributable cash was lent to band member and written off | 102 |
| Tax Topics - Income Tax Act - Section 9 - Agency - Agency | 185 | |
| Tax Topics - Statutory Interpretation - Similar Statutes/ in pari materia | 98 |
Administrative Policy
6 July 2001 External T.I. 2001-0081575 - GENERAL INFORMATION TAX EXEMPT ENTITIES
It is CRA's position that a corporation that is a non-share corporation has its ownership determined with reference to the capital of the...
13 July 1995 External T.I. 9503265 - EXEMPT STATUS - B.C. REGIONAL DISTRICTS
A regional district in B.C. is a Canadian municipality for purposes of s. 149(1)(d); and s. 149(1)(d) applies to a corporation owned by more than...
6 July 1995 External T.I. 9431355 - CROWN CORPORATION - SHARES OWNED BY CROWN AGENT
"The expression 'Her Majesty in Right of a Province' includes agents of Her Majesty in right of the province."
The expression "capital" does not...
21 June 1995 External T.I. 9509885 - EXEMPT STATUS- MULTIPLE MUNICIPALITIES
S.149(1)(d) is satisfied where at least 90% of the shares of the corporation are held by a combination of qualifying entities, eg., more than one...
29 March 1994 External T.I. 9407755 - RIGHT OF REDEMPTION
S.149(1)(d)(i) applies where a corporation, 90% of whose shares are held by the Crown, has the right to redeem those shares.
11 January 1993 Memorandum (Tax Window, No. 28, p. 19, ¶2387)
Because an Indian band council is not a municipality, a corporation at least 90% of whose shares are owned by a band council will not qualify for...
8 September 1992 T.I. (Tax Window, No. 24, p. 16, ¶2182)
In order to qualify for the exemption, a corporation must actually be under the control of the municipality and not merely nominally owned by it.
Articles
J. Peter Ranson, "The Evolution of Aboriginal Tax Exemptions: The Past, the Present and the Future", 2005 Conference Report, c. 24.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | 0 |
Paragraph 149(1)(d.3) - 90% owned corporations
Administrative Policy
1 May 2020 External T.I. 2020-0846931E5 - CEWS - public institution
In response to an inquiry on the Crown corporation branch of the definition of a public institution in s. 125.7(1) of the CEWS rules, CRA first...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Public Institution - Paragraph (a) | factual tests applied in determining ownership of capital of non-share corporation | 200 |
3 October 2003 External T.I. 2003-0028385 F - EXONERATION DU REVENU IMPOSABLE
Regarding the meaning of the reference to “shares: in s. 149(1)(d.3), CCRA referred to the proposed amendment to the definition of “share”...
2003 Ruling 2002-0168083 - CAPITAL OF NON-SHARE CORPORATION
Ruling based on the interpretation that a corporation's capital does not include its indebtedness for purposes of s. 149(1)(d.3).
Paragraph 149(1)(d.4) - Combined ownership
Administrative Policy
12 October 2012 External T.I. 2011-0428521E5 F - Société d'État
In confirming that s. 149(1)(d.4) does not apply to a corporation a portion of whose shares are held by Her Majesty in right of Canada or a...
Paragraph 149(1)(d.5) - Income within boundaries of entities
Cases
Lawyers’ Professional Indemnity Company v. Canada, 2020 FCA 90
The Tax Court found that the appellant (“LPIC”) did not qualify under s. 149(1)(d.5) as being owned as to more than 90% by a “municipal or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 14 | marginal notes may be considered as part of the interpretive process | 96 |
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | narrower construction avoided rendering language redundant | 81 |
| Tax Topics - Statutory Interpretation - Consistency | presumption of the same meaning | 78 |
See Also
Lawyers' Professional Indemnity Company v. The Queen, 2018 TCC 194, aff'd 2020 FCA 90
The taxpayer, a subsidiary of the Law Society of Upper Canada (the “Law Society”), was an insurance company providing professional liability...
Administrative Policy
5 January 2016 External T.I. 2015-0568911E5 F - MRC - Revenu d’entreprise
A regional county municipality holds all of the capital in a corporation (“Corporation”) which will earn income from a paid service carried on...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | test references dominant person | 90 |
2 December 1999 External T.I. 9913895 - MUNICIPAL CORPORATIONS
It remains the Department's view that indebtedness is not included in "capital". S.149(1.3) completely codifies the ownership test, rather than...
Articles
Sara K. McCracken, "Municipal Corporations: One Option for First Nations Businesses", Business Vehicles, Vol. VI, No. 3, 1999, p. 2406.
Paragraph 149(1)(d.6)
Administrative Policy
17 October 2005 External T.I. 2005-0139031E5 F - Activités exercées en dehors de la réserve
Corporation B (wholly-owned by a corporation held by an Indian band) signed a forest management agreement with the Quebec government respecting...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1.2) | timber royalties derived from agreement with provincial government but paid by 3rd party operator did not qualify | 96 |
Paragraph 149(1)(e) - Certain organizations
Administrative Policy
2013 Ruling 2012-0438831R3 - 149(1)(e) Ruling
underline;">: Proposed transactions. An organization which previously had filed as an s. 149(1)(l) organization will contract with Distributor to...
12 October 2007 External T.I. 2007-0252941E5 F - OSBL et organisation agricole
Regarding how an agricultural organization might qualify as a non-profit organization, CRA stated:
In order to benefit from the tax exemption...
11 June 1993 Memorandum (Tax Window, No. 32, p. 21, ¶2625)
RC would permit an agricultural organization that inadvertently made payments to its members to rectify the situation by requiring its members to...
Paragraph 149(1)(f) - Registered charities
Cases
Canada v. Nova Scotia Power Inc., 2003 DTC 5090, 2003 FCA 33
Section 4 of the Power Commission Act (Nova Scotia) provided that the Nova Scotia Power Commission ("NSPC") "shall continue as a body corporate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 17 | 250 |
Paragraph 149(1)(i) - Certain housing corporations
Administrative Policy
11 July 1994 Internal T.I. 9414467 - DONATIONS TO HOUSING CORPORATION
Because the constitution for a housing corporation authorized it to provide accommodation to persons other than aged persons, it did not qualify....
Paragraph 149(1)(j) - Non-profit corporations for scientific research and experimental development
Administrative Policy
21 February 2013 External T.I. 2012-0442751E5 F - Non-Profit SR&ED corporation
In the course of a general discussion, CRA noted that a s. 149(1)(j) organization need not be approved under s. 37(1)(a)(ii), and stated:
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(A) | requirements for approval under (A) or (B) of research association | 230 |
5 December 1994 Ministerial Letter 942198A - XXXXXXXXXX
Discussion of distinction between an approved research institute (s.37)(1)(a)(ii)(B)) and a non-profit corporation described in s. 149(j).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(7) - Approved | 22 |
19 October 1993 External T.I. 9329815 F - Approved for Scientific Research
Discussion of criteria to be met by a corporation if it is to be considered a non-profit corporation for scientific research and experimental...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) | 33 |
18 May 1993 T.I. (Tax Window, No. 31, p. 8, ¶2517)
Discussion of criteria for determining whether approval of a research institute or similar organization will be granted.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) | 13 |
4 August 1992 T.I. (Tax Window, No. 23, p. 9, ¶2166)
Criteria of RC for determining whether a corporation qualifies.
11 January 1990 T.I. (June 1990 Access Letter, ¶1278)
The corporation seeking exemption under s. 149(1)(j)(ii) must expend at least 90% of its income on SR&ED, in addition to not carrying on any...
Paragraph 149(1)(k) - Labour organizations
Cases
O'Brien v. The Queen, 85 DTC 5202, [1985] 1 CTC 285 (FCTD)
It was not seriously disputed by the Crown that five unions who ran a newspaper business were not subject to tax on the profits generated.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 46 |
Administrative Policy
2019 Ruling 2018-0779221R3 F - Dissolution d'une association ouvrière
Background
A union that was described in s. 149(1)(k) and that had been collecting union dues held a subsidiary that was a taxable Canadian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | winding-up of a labour union gives rise to capital gains to the union members | 81 |
5 February 1996 External T.I. 9532825 - MEANING OF LABOUR ORGANIZATION
"A labour organization is generally an association of workers of the same trade, or of several allied trades, organized for the purpose of...
28 December 1995 Internal T.I. 9529347 - UNION OWNING SHARES
The acquisition by a union of 50% of the shares of a corporation owning and carrying on a business would not, by itself, result in loss of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(5) | 85 |
91 C.R. - Q.44
RC cannot comment on the general application of the reasoning in the O'Brien case.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 | strike pay | 19 |
Paragraph 149(1)(l) - Non-profit organizations
Cases
Gull Bay Development Corp. v. The Queen, 84 DTC 6040, [1984] CTC 159 (FCTD)
It was found that a corporation without share capital had been set up to improve living and social conditions on an Indian reserve, and thereby...
Woodward's Pension Society v. The Minister of National Revenue, 62 DTC 1002, [1962] CTC 11, [1962] S.C.R. 224
The taxpayer, which was incorporated under the Societies Act of British Columbia, was organized in order to provide funds for the payment of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | 85 |
Minister of National Revenue v. St. Catharines Flying Training School Ltd., 55 DTC 1145, [1955] CTC 185, [1955] S.C.R. 738
The taxpayer was incorporated under Part I of the Dominion Companies Act for the purpose of operating a flying school for the training of members...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | 80 |
MNR v. Lakeview Golf Club Ltd., 52 DTC 1164, [1952] CTC 278 (Ex Ct)
A share corporation that operated a golf course did not qualify for exemption given that it was profitable for the years in question, its bylaws...
See Also
Coop publicitaire des concessionnaires Chrysler Jeep Dodge du Québec c. Agence du revenu du Québec, 2016 QCCQ 11252
The appellant (“Coop”) was incorporated under the Quebec Cooperatives Act for the stated purpose of “carrying on a business with a view to...
BBM Canada (formerly BBM Bureau of Measurement) v. The Queen, 2008 DTC 4129, 2008 TCC 341
A non-share federal corporation that undertook audience measurement activities for the benefit of its members (commercial TV and radio stations)...
Canadian Bar Insurance Assn. v. R, 99 DTC 653, [1999] 2 CTC 2833 (TCC)
The taxpayer, whose letters patent stated that "in no event shall the purposes of the organization and/or operation of the Corporation include...
Otineka Development Corp. Ltd. v. The Queen, 94 DTC 1234, [1994] 1 CTC 2424 (TCC)
Two corporations owned by an Indian band that owned and operated a shopping mall and a building supply business had as their sole raison d'être...
L.I.U.N.A. Local 527 Members' Training Trust Fund v. The Queen, 92 DTC 2365 (TCC)
A fund established by the Labours International Union of North America, Local 527 and the Ottawa Construction Association (an employers'...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Charitable Organization | 47 |
C. & E. Commrs v. Bell Concord Educational Trust Ltd., [1989] BTC 5061 (C.A.)
An incorporated college which, in fixing the student fees, budgeted for a substantial surplus of revenues over expenditure to be applied in...
Re Ogdensbury Bridge and Port Authority (1989), 56 DLR (4th) 56 (Ont HC)
A public benefit corporation which was incorporated in New York to build and operate an international bridge to Canada was not exempt from...
Tourbec (1979) Inc. v. Minister of National Revenue, [1988] 2 CTC 2071, 88 DTC 1442
In finding that the appellant, which was incorporated as a non-profit company, but which “was carrying on a business concern much the same as...
Re Kitchener-Waterloo Real Estate Board (1986), 56 OR (2d) 94 (HCJ)
The predominant activity of the Kitchener-Waterloo Real Estate Board, which was a non-share corporation that was prohibited from distributing...
Regional Assessment Commisioner v. Caisse Populaire de Hearst, [1983] 1 S.C.R. 57, 143 DLR (3d) 590
The predominant purpose of a credit union was to provide loans to its members for provident and productive purposes at low cost and not to make a...
Administrative Policy
13 May 2024 External T.I. 2022-0944461E5 - NPO - Residential housing co-operative
Would a residential housing co-operative (Co-op) continue to qualify under s.149(1)(l) if it earned profits from renting its common areas to...
1 May 2023 External T.I. 2021-0921101E5 - XXXXXXXXXX
A corporation (the DLCC), which had been operating a club for the purposes of pleasure and recreation of the members and of the community was, as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | conversion of share corp to non-share corp would not cause a share disposition if no share cancellation and the rights of the shareholders were not substantively altered | 195 |
| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | s. 51 inapplicable to conversion of share corp to non-share corp | 191 |
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(12) | “rentals” not reduced by expenses | 21 |
2021 Ruling 2020-0847671R3 F - Transfert d'un immeuble
A corporation governed by the CBCA which nonetheless was intended to qualify as an NPO under s. 149(1)(l) owned an apartment building which it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | no s. 15(1) benefit on property transfer to shareholders for its nominal appraised FMV if indeed such FMV was suppressed by the low-rent long-term leases to the shareholders | 328 |
| Tax Topics - General Concepts - Fair Market Value - Land | no demurral re a property’s FMV being suppressed by long-term leases with nil net rents | 247 |
2016 Ruling 2015-0593841R3 - Sale of XXXXXXXXXX Club
Background
A Club has both Class A and Class B shares, which are entitled to receive dividends, outstanding, as well as common shares. However,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(5) | no effect of s. 149(5)(e)(ii) on CDA amount | 147 |
6 August 2015 External T.I. 2015-0565651E5 F - Reliquat dévolu à une administration municipale
Would an organization otherwise qualifying under s. 149(1)(l) lose its exempt status because of a clause in its articles providing that in the...
29 April 2015 External T.I. 2014-0532691E5 F - Vente immeuble - syndicat copropriétaire
A syndicate of co-owners holding condominium units sold one of the condominiums at a capital gain. Would this cause it to lose its status under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | community of condominium owners is treated by the Civil Code as a legal person, and is a corporation | 125 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | distribution of gain to members of a condominium syndicate gave rise to a shareholder benefit | 77 |
4 March 2015 External T.I. 2014-0537941E5 - Non-Profit Organization fibre-optic cable
The Institute, a not-for-profit organization, received a provincial grant and subsequently accessed provincial debentures to finance the...
11 September 2014 External T.I. 2014-0540031E5 - Community Contribution Company (C3)
The B.C. Business Corporations Act now allows for a "community contribution company" to do business and generate profits in the normal course of...
26 August 2014 External T.I. 2014-0528701E5 - Non-profit organization - Condominium
A commercial condominium corporation manages the property and assets of a commercial building consisting of units that are individually owned by...
30 May 2014 External T.I. 2014-0518841E5 - 149(1)(l) - Fundraising
In response to a query on a fundraising event whose description CRA did not repeat, it stated:
Limited fundraising activities involving games of...
18 August 2014 External T.I. 2014-0528171E5 - Condominium Corporations and 149(1)(l)
A condominium corporation (the "Corporation") enters into a leasing agreement with a solar company, which would lease several roofs within the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | condominium solar revenue treated as members' income | 243 |
Non-Profit Organization Risk Identification Project Report 17 February 2014
Purpose of Project
[T]he Non-Profit Organization Risk Identification Project (NPORIP)…, which the CRA started in 2009…was designed to provide...
23 September 2013 Internal T.I. 2012-0471531I7 F - Non-profit organization
A taxable Canadian corporation was the member of a non-profit organization and its sole creditor and principal benefactor. The NPO was wound up...
12 August 2013 External T.I. 2012-0468581E5 - Condo corp sale or rental of caretaker suite
A condominium corporation would probably retain its s. 149(1)(l) exemption if it were to sell a caretaker suite at fair market value and put the...
2 August 2013 External T.I. 2013-0475041E5 - NPO - rental income
An NPO intended to rent vacation properties to non-members without giving up its s. 149(1)(l) exemption. CRA indicated that such activities would...
2 July 2013 External T.I. 2012-0454251E5 - 149(1)(l) donations to capital fund
Generally, an organization referred to under s. 149(1)(l) will not lose its s. 149(1)(l) exemption for collecting donations from members or from...
21 November 2012 Internal T.I. 2012-0455501I7 - NPO Project
The Corporation was a non-share corporation with only one member (the "Parent"). The Corporation, which had substantial retained earnings, was...
20 November 2012 Internal T.I. 2012-0439951I7 - NPO Project
CRA indicated that the NPO in question would probably not qualify for s. 149(1)(l) exemption:
In our view, the fact that the Association has...
16 October 2012 External T.I. 2012-0448531E5 - XXXXXXXXXX update on NPO audit project
CRA previously sent "education letters" to organizations claiming s. 149(1)(l) exemption in order to remind them of the criteria of that...
28 September 2012 External T.I. 2011-0429141E5 - NPO - Loan to Taxable Subsidiary
Before concluding that a non-profit organization which make loans to a taxable subsidiary would "likely not" qualify for the exemption, CRA...
27 September 2012 External T.I. 2011-0412961E5 - NPO and Taxable Subsidiary
CRA noted that holding shares in a for-profit subsidiary will not necessarily disqualify an organization from the benefit of 149(1)(l).
...if an...
20 June 2012 Internal T.I. 2011-0426231I7
CRA found that an organization likely did not qualify as a non-profit organization given that the size of its operating reserves, and the rate at...
23 May 2012 External T.I. 2011-0418691E5 - 149(1)(l) - Lease or Sale of Lockers to Members
The lease or sale of lockers to members will generally not jeopardize an organization's eligibility under s. 149(1)(l), provided that doing so is...
30 March 2012 Internal T.I. 2011-0408851I7 - XXXXXXXXXX and 149(1)(l)
CRA indicated that it is reasonable under s. 149(1)(l) for a non-profit organization to invest funds before it is required to distribute them (in...
12 March 2012 Internal T.I. 2011-0404671I7 - Paragraph 149(1)(l)
CRA indicated that a corporation's large retained earnings probably disqualified the corporation from the s. 149(1)(l) exemption:
Based on the...
29 March 2012 External T.I. 2010-0391311E5 F - OBNL, exploitation d'une entreprise
CRA quoted from Timmmins, and indicated that an organization whose overall objective is not to earn profit may nonetheless be considered to be...
28 March 2012 External T.I. 2011-0395201E5 - IT-496R
Where IT-496R, para. 12 indicates that payments may be made to delegates to cover expenses of attending conventions and meetings, "delegates"...
20 February 2012 Internal T.I. 2011-0429471I7 F - OBNL et profits accessoires
Consistently with its not-for-profit objects, Corporation hosts, organizes and promotes an annual out-doors festival event. Although it receives...
20 February 2012 Internal T.I. 2011-0429461I7 F - OBNL et profits accessoires
CRA indicated that the generation of profits from retail sales of consumer products such as food, beer and wine during shows and outside...
27 November 2011 CTF National Conference CTF Roundtable, 2011-0426111C6 - 2011 CTF Question re NPOs
In the course of answering questions pertaining to CRA's Non-Profit Organization Risk Identification Project, comprising the random auditing over...
23 June 2011 External T.I. 2011-0397881E5 - 149(1)(l) Entity - Use of Land by Shareholders
In the case of a corporation to which s. 149(1)(l) applied (non-profit corporation for recreation or pleasure), use by a shareholder of corporate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | conferral on NPO member | 65 |
28 November 2010 CTF Roundtable, 2010-0386301C6 - NPO Carrying on Business for Profit
In response to a general inquiry as to when an NPO is carrying on a business for profit, CRA stated:
21 November 2001 External T.I. 2001-0095285 - NON-RESIDENT NON-PROFIT ORGANIZATION
the exemption in s. 149(1)(l) is equally available to a non-resident NPO. If the corporation qualifies as an NPO under s. 149(1)(l), it also will...
25 February 2010 External T.I. 2009-0352231E5 F - OBNL, profits, perte de statut, gain en capital
Regarding a question on the holding of surplus funds by a non-profit organization (“NPO”), CRA stated:
The holding of surplus funds is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | s. 84(2) inapplicable to winding-up of non-share corp | 104 |
12 May 2008 External T.I. 2007-0262861E5 F - Perte du statut d'OSBL
In the course of a general response to a query as to when a company would lose its status as a not-for-profit organization, CRA stated:
If, at any...
27 March 2008 External T.I. 2006-0200451E5 F - Syndicat de copropriétaires
A not-for-profit condominium syndicate, which CRA found in light of article 1039 of the Civil Code, constituted a corporation, proposed to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | condominium syndicate described in CCQ Art. 1039 is a corporation | 35 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | the co-owners of a Quebec syndicate were to be viewed as members of a corporation, so that s. 15(1) applied to a distribution to them | 83 |
2 July 1998 External T.I. 9804555 - DAMAGE SETTLEMENT
Damages received by a teminated employee that could be attributed to aggravated and punitive damages relating to malicious actions, intentional...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 74 |
2 August 1995 External T.I. 9516835 - NPO - INDIAN FORRESTRY CORPORATION
Comments on whether a non-profit forestry corporation set up by aboriginal persons and described as an aboriginal community development...
Income Tax Technical News, No. 4, 20 February 1995
Most residential condominium corporations will qualify as non-profit organizations because they are normally operated "for any other purpose...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | 62 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | 50 |
25 July 1994 External T.I. 9413795 - NPO - PURPOSE TRUSTS
With reference to a testamentary trust established for the purpose of providing funds for the care and treatment of domestic animals in a...
21 July 1994 External T.I. 9414225 - NON-PROFIT ORGANIZATION
A company that carries on a dockside monitoring program on fish landings potentially could qualify.
10 July 1994 External T.I. 9414975 - NON-PROFIT CORPORATIONS
"Generally, the Department is of the view that an organization is not operated exclusively for non-profit purposes, when its principal activity...
27 June 1994 External T.I. 9408145 - TRAINING TRUST FUNDS
"Employee training trust funds are similar to purpose trust and provided, among other factors, they spend their funds on furthering the...
23 March 1994 External T.I. 9335255 - NON-PROFIT ORGANIZATIONS
Re Whether a subsidiary of a labour union which has purchased a building for rental to the union will qualify for exemption under s. 149(1)(l).
26 August 1992 T.I. 921469 (April 1993 Access Letter, p. 150, ¶C144-207)
The provision of goods and services to persons other than members and their guests may be characteristic of a profit motive.
Where a special...
9 March 1992 T.I. (Tax Window, No. 17, p. 23, ¶1790)
A non-profit organization that acquires office space in excess of its current needs (but not in excess of what it might be expected to need in the...
14 February 1992 T.I. (Tax Window, No. 16, p. 22, ¶1749)
An organization may qualify as a non-profit organization if it receives dividends from a wholly-owned taxable corporation which carries on an...
7 October 1991 Income Tax Severed Letter - Non-profit Club
Where the facilities of an organization are available to non-members and used by them to a significant degree with the result that (a) activities...
6 September 1991 T.I. (Tax Window, No. 9, p. 21, ¶1448)
Where a non-profit community organization arranged to have a charity issue official receipts to members of the non-profit organization in respect...
17 July 1991 T.I. (Tax Window, No. 6, p. 14, ¶1358)
Where an organization accumulates profits rather than using them to achieve its non-profit objectives, it may lose its NPO status.
15 November 1990 Memorandum (Tax Window, Prelim. No. 2, p. 15, ¶1079)
Where funds are paid to or otherwise made available for the personal benefit of any member of a Canadian political party, it will lose its...
23 February 1990 T.I. (July 1990 Access Letter, ¶1340)
If the letters patent, trust deeds or by-laws of an entity indicate that anything more than a return of capital or taxable capital gains may be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(5) | 10 | |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 30 |
11 January 1990 Memorandum (June 1990 Access Letter, ¶1277)
Where an organization is engaged in operations intended to make a profit, it cannot qualify unless there is a causal relationship between the...
IT-83R3 "Non-Profit Organizations - Taxation of Income from Property"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(5) | 0 |
IT-496 "Non-Profit Organizations"
Meaning of any other purpose except profit
5. … The phrase any other purpose except profit is interpreted as a catch-all for other associations...
IT-409 "Winding-up of a Non-Profit Organization"
Articles
Joel Secter, "New Regime for Federal Not-For-Profits is Coming Soon", The Canadian Taxpayer, Vol xxxiii No. 14, 22 July 2011, p. 105: Overview of Canada Not-for-profit Corporations Act.
Knechtel, "Tax Treatment of Non-Profit Organizations", 1989 Conference Report, c. 35
Paragraph 149(1)(n) - Housing companies
Administrative Policy
22 February 2021 External T.I. 2020-0848221E5 - Housing companies 149(1)(n)
1. Does a company that holds and manages but does not construct a low-income rental property meet the definition of a “limited-dividend housing...
17 August 2016 Internal T.I. 2016-0639251I7 - Capital Dividend Account and 149(1)(n)
CRA considers that one-half of the capital gains generated by a private corporation that is exempt as a low-rental housing corporation under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) | exempt low-rental housing corp can use a CDA | 127 |
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1.2) | deemed 149(10) gain does not add to CDA before it disapppears under 89(1.2) | 169 |
9 September 1996 External T.I. 9628465 - LIMITED DIVIDEND HOUSING COMPANY
Ninety percent or more of the business of a limited-dividend housing company must be demonstrated to be for the construction, holding or...
29 July 1992 External T.I. 5-921729
The 5% limit is calculated by reference to the invested capital, eg., the paid-up capital.
It is not possible for a corporation which was...
8 June 1992 T.I. 912877 (December 1992 Access Letter, p. 30, ¶C14-188)
S.2 of the National Housing Act and s. 149(1)(n) are in parri materia, with the result that s. 2 defines what constitutes a "low-rental housing...
Paragraph 149(1)(o.1)
Subparagraph 149(1)(o.1)(i)
Clause 149(1)(o.1)(i)(A)
Administrative Policy
28 October 2008 External T.I. 2008-0274281E5 F - Société gestion de pension, moyen de financement
CRA noted that s. 149(1)(o.1)(i)(A establishes a two-pronged test: whether it was incorporated solely to administer a registered pension plan; and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.1) - Subparagraph 149(1)(o.1)(ii) | to be accepted, the corporation must hold property rather than only manage | 52 |
Subparagraph 149(1)(o.1)(ii)
Administrative Policy
28 October 2008 External T.I. 2008-0274281E5 F - Société gestion de pension, moyen de financement
In the course of a general response, CRA stated:
[A] management corporation that provides only accounting and lease management services would not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.1) - Subparagraph 149(1)(o.1)(i) - Clause 149(1)(o.1)(i)(A) | 2-pronged test | 47 |
Paragraph 149(1)(o.2) - Idem [Pension corporations]
Subparagraph 149(1)(o.2)(i)
Administrative Policy
29 May 2001 External T.I. 2001-0075245 F - SOCIETE DE GESTION DE PENSION
Regarding the application of s. 149(1)(o.2)(i) to a corporation incorporated before November 17, 1978 specifically for two registered pension...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(2) | reference to administration of one pension plan included two or more | 49 |
Subparagraph 149(1)(o.2)(ii)
Administrative Policy
5 March 2014 External T.I. 2013-0490641E5 - Pension Corp-Real Property Development
Less than 20% of a parcel acquired by a s. 149(1)(o.2)(ii) pension corporation (Pensionco) to develop a shopping centre (the "Excess Land") would...
14 January 2014 External T.I. 2012-0453871E5 F - Pension Real Estate Corporation
Can a corporation qualify under subparagraph 149(1)(o.2)(ii) if it makes non-real estate investments permitted under the pension benefits...
26 June 2002 External T.I. 2002-0134885 - BORROWED MONEY
"The conditions of clause 149(1)(o.2)(ii)(C) would not be satisfied, where borrowed money is used to replace the capital contributed by the...
2001 Ruling 2000-009708
The refinancing of money borrowed for the purpose of earning income from real property will meet the requirements of s. 149(1)(o.2) provided that...
2001 Ruling 2000-007094
"The acquisition or holding of interests in a limited partnership that invests in real property will not, in and by itself, result in the...
Income Tax Technical News, No. 1, 22 July 1994
A pension fund realty corporation that acquires or holds an interest in capital property that is real property will not lose its tax-exempt status...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | 67 | |
| Tax Topics - Income Tax Act - Section 9 - Timing | 29 |
18 February 1994 External T.I. 9402415 - PENSION REALTY CORPORATION
A pension fund realty corporation may acquire or hold capital property that is real property irrespective whether or not the co-owners are...
93 C.R. - Q. 7
Because ownership of an undivided interest in a property gives each co-owner rights in respect of the entire property, if a s. 149(1)(o.2)...
25 November 1992 T.I. 921520 [development of capital property permitted]
A corporation is permitted to develop a capital property as long as such development is associated with the earning of passive investment income...
28 August 1992 T.I. (Tax Window, No. 23, p. 18, ¶2164)
None of the entities described in ss.149(1)(o), (o.1) and (o.2) can participate in the active development of properties.
8 April 1992 T.I. (Tax Window, No. 18, p. 20, ¶1860)
The corporation will lose its tax exempt status if it acquires an undivided 1/2 interest in a parcel of land that will be improved and leased to...
11 October 1991 T.I. (Tax Window, No. 11, p. 23, ¶1524)
The exemption in s. 149(1)(o.2)(ii) is applicable only to corporations that maintain a passive role in real estate activities and is not available...
June 1990 T.I. (November 1990 Access Letter, ¶1532)
In order for an amalgamated corporation to qualify under s. 149(1)(o.2) as a non-taxable corporation, the amalgamated corporations must have so...
Articles
Jack Silverson, Bill Corcoran, "Issues Affecting Investments by Canadian Pension Plans in Private Equity, Infrastructure and Real Estate in Canada, the USA and Europe", 2016 Conference Report (Canadian Tax Foundation),15:1-40
Use of lease structure to address proportionate activity or real estate activity tests (pp. 15:19-23)
Pension plan investments in real estate are...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iii) | 990 | |
| Tax Topics - Treaties - Multilateral Instrument - Article 7 | 161 |
D. Williamson, "Real Estate Investment Trust", 1997 Corporate Management Tax Conference Report, c. 5.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 132 - Subsection 132(6) | 0 |
Shafer, "Investments in Real Estate by Tax-Exempt Entities and Intermediaries", 1995 Corporate Management Tax Conference Report, c. 13.
Krasa, "Pension Real Estate Investment Corporations: Compliance Issues", 1995 Canadian Tax Journal, Vol. 43, No. 3, p. 610.
Clause 149(1)(o.2)(ii)(A)
Administrative Policy
2021 Ruling 2020-0872241R3 - Pension Corporation - Financing
Proposed transactions
Aco, which is exempted under ss. 149(1)(o.2)(ii) and (iv), and which is held by a corporation (described in Reg. 4802(1)(g))...
15 September 2020 External T.I. 2020-0854471E5 - Pension Corporation - Renting Furnished Apartment
A pension corporation that is exempted under s. 149(1)(o.2)(ii) (the “Corporation”) owns a 45% interest in a limited partnership (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 132 - Subsection 132(6) - Paragraph 132(6)(b) | renting furnished apartments was an exclusively real-estate leasing activity | 132 |
27 January 2006 External T.I. 2005-0164611E5 F - Société immobilière de pension - sens de location
Regarding whether a pension fund real estate corporation that owns (in joint tenancy with a taxable corporation) a building that includes...
Articles
Hersh Joshi, Jack Silverson, "Understanding and Doing Business with Tax-Exempt Entities", 2018 Conference Report (Canadian Tax Foundation), 29:1 – 35
Issues where co-investing in real estate (pp. 29:18-19)
[A] pension plan may want to co-invest…[and] might establish a real estate...
Clause 149(1)(o.2)(ii)(B)
Administrative Policy
21 December 2016 Internal T.I. 2013-0508321I7 - Pension Corporations - 149(1)(o.2)(iii)
For PBSA purposes, the prohibition against a pension plan investing more than 10% of its assets in any one investment is applied at the level of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iii) | not generally precluded by the permitted investment rule from putting more than 10% of its assets in a single investment | 227 |
6 June 2005 External T.I. 2005-0114481E5 F - Division 149(1)o.2)(ii)(C)
A corporation intended to qualify under s. 149(1)(o.2)(ii) had used borrowed money to fund part of its acquisition of a rental-property portfolio,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(C) | loan that funded rental property acquisition may still qualify after partial sale of portfolio/replacement borrowing can also qualify | 165 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | loan that funded rental property acquisition may still qualify as “solely for the purpose of earning income” per s. 149(1)(o.2)(ii)(C) after partial sale of portfolio | 165 |
Clause 149(1)(o.2)(ii)(C)
Administrative Policy
15 June 2020 External T.I. 2020-0850981E5 - CECRA – Pension plan eligibility
The Canada Emergency Commercial Rent Assistance Program (the “CECRA”) offers unsecured, forgivable loans to eligible commercial property...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 8502 - Paragraph 8502(i) | CECRA loans do not lead to deregistration of an RPP | 192 |
6 June 2005 External T.I. 2005-0114481E5 F - Division 149(1)o.2)(ii)(C)
A corporation intended to qualify under s. 149(1)(o.2)(ii) had used borrowed money to fund part of its acquisition of a rental-property portfolio,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(B) | deferred proceeds receivable for real estate sale do not qualify as real property | 107 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | loan that funded rental property acquisition may still qualify as “solely for the purpose of earning income” per s. 149(1)(o.2)(ii)(C) after partial sale of portfolio | 165 |
Articles
Hersh Joshi, Jack Silverson, "Understanding and Doing Business with Tax-Exempt Entities", 2018 Conference Report (Canadian Tax Foundation), 29:1 – 35
Limitations on borrowing (pp. 29:20-21)
[B]orrowing to fund a tenant inducement payment… should generally satisfy the borrowing restrictions,...
Subparagraph 149(1)(o.2)(iii)
Administrative Policy
21 December 2016 Internal T.I. 2013-0508321I7 - Pension Corporations - 149(1)(o.2)(iii)
The prohibition under the PBSA against investing more than 10% of a pension plan’s assets in any one investment (the “10% quantitative...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(B) | 10% PBSA limitation applied only at pension fund level | 102 |
10 May 2016 Internal T.I. 2016-0644761I7 - RPP borrowing
The Directorate considered that a pension plan breached Reg. 8502(i) as the amount of borrowing in respect of certain real estate properties of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 8502 - Paragraph 8502(i) | pension plan could correct excess borrowing on a going-forward basis through assumption of the debt by a 149(1)(o.2)(ii) sub with plan guarantees | 217 |
17 April 2014 External T.I. 2012-0461151E5 F - pension fund real estate
Would an advance made by a registered pension plan ("RPP") to a pension plan investment corporation (“PPIC”) wholly owned by it qualify under...
14 August 2006 External T.I. 2005-0162911E5 - Subparagraph 149(1)(o.2)(iii) - Investments
Derivatives such as forward contracts, futures, swaps and options would be considered to be qualifying investments provided that they were...
2002 Ruling 2001-0108483 - PENSION FUND CORPORATION
A participating bond that is permitted under the PBSA would be considered to be an investment allowed within the meaning of s. 149(1)(o.2)(iii)(A).
2001 Ruling 2000-0055463 - pension plan
A cash call obligation requiring the (o.2) corporation to acquire additional equity in an investment would not constitute a debt obligation for...
8 May 1997 External T.I. 9636045 - PENSION CORPORATIONS
"Nonrefundable commitment fees, loan fees and inducement payments which can be directly traced to a specific mortgage loan investment would...
15 February 1993 T.I. 9231345 [loan from pension fund shareholder]
Does a non-interest bearing demand loan by a pension plan to a subsidiary corporation to facilitate the transfer of monies into and out of the...
Articles
Jack Silverson, Bill Corcoran, "Issues Affecting Investments by Canadian Pension Plans in Private Equity, Infrastructure and Real Estate in Canada, the USA and Europe", 2016 Conference Report (Canadian Tax Foundation),15:1-40
Interpretation of 10% limit in PBSA Regulations, Sched. III, s. 9(1) (“10% Rule”) (pp. 15:4-6)
The purpose of the 10 percent rule was also...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) | 409 | |
| Tax Topics - Treaties - Multilateral Instrument - Article 7 | 161 |
Clause 149(1)(o.2)(iii)(B)
See Also
Hudson’s Bay Company v. OMERS Realty Corporation , 2016 ONCA 113
In finding that the assignment of leases by a tenant (“HBC”) to a limited partnership of which a subsidiary was a general partner, but in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | general partner holds and controls the limited partnership property | 199 |
Articles
Hersh Joshi, Jack Silverson, "Understanding and Doing Business with Tax-Exempt Entities", 2018 Conference Report (Canadian Tax Foundation), 29:1 – 35
Trade payables not bonds etc. (p. 29:10)
[T]he CRA has accepted that intercompany payables and trade payables that are not evidenced in writing...
Clause 149(1)(o.2)(iii)(C)
Articles
Hersh Joshi, Jack Silverson, "Understanding and Doing Business with Tax-Exempt Entities", 2018 Conference Report (Canadian Tax Foundation), 29:1 – 35
Allocated LP income is income derived from an investment (pp. 29:7-9)
[T]he technical notes to section 253.1 implicitly contemplate that a...
Subparagraph 149(1)(o.2)(iv)
Administrative Policy
28 May 2015 External T.I. 2015-0582901E5 - 149(1)(o.2) Pension corporation
Is a related segregated fund trust that has only one beneficiary (which is a registered pension plan) a permissible shareholder of a tax-exempt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(2) | reference to beneficiaries includes single beneficiary | 66 |
Clause 149(1)(o.2)(iv)(D)
Administrative Policy
14 August 2020 External T.I. 2019-0829811E5 - Crown Agent Status w/respect to Para. 149(1)(o.2)
CRA indicated that it considered a corporation - that was deemed in its enabling legislation to hold all its property as the property of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4802 - Subsection 4802(1) - Paragraph 4802(1)(e) | a provincial incorporating statute’s declaration of deemed property ownership by the provincial Crown was respected | 187 |
Paragraph 149(1)(o.4) - Master trusts
Administrative Policy
14 July 2005 External T.I. 2005-0129441E5 F - Fiducie réputée
CRA indicated a segregated fund that is deemed by s. 138.1(1)(a) to be an inter vivos trust for Part I purposes is also such a trust for purposes...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4802 - Subsection 4802(1.1) | a deemed trust under s. 138.1(1)(a) could be a master trust if the conditions in Reg. 5001 are satisfied | 34 |
14 August 1992 T.I. (Tax Window, No. 23, p. 19, ¶2143)
Provided all relevant conditions are satisfied, once a trust elects to be a master trust in a taxation year, it will be exempt from tax for the...
1 October 1991 T.I. (Tax Window, No. 10, p. 23, ¶1490)
A master trust that was in existence before the enactment of s. 149(1)(o.4) which elects under that provision will have its period of exemption...
Articles
Krasa, "Income Tax Implications of Joint Investment by Pension Plans through a Private Pooled Fund Vehicle", 1997 Canadian Tax Journal, Vol. 45, No. 1, p. 1.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5000 - Subsection 5000(7) - Pooled Fund Trust | 0 |
Paragraph 149(1)(t) - Farmers’ and fishermen’s insurer
Administrative Policy
28 June 2010 External T.I. 2009-0342671E5 - Paragraph 149(1)(t) - non-resident insurers
The exemption in s. 149(1)(t) is available to a non-resident insurer; and in applying ss. 149(4.1) and (4.2) the activities of the non-resident...
21 December 1993 T.O. 933153 (C.T.O. "Unable to Rule/Question of Fact")
For purposes of the requirement in s. 149(1)(t) that the person not be engaged in any business (other than insurance) "if the nature of [a]...
29 January 1990 Memorandum (June 1990 Access Letter, ¶1279)
Where properties are only partly used in a farming business, one must examine the nature of the property and the proportion in which it is used in...
Paragraph 149(1)(w)
Administrative Policy
28 June 2017 External T.I. 2017-0705431E5 - funds held in settlement account
Settlement funds received by a law firm from the defendant in a class action suit areheld in a settlement trust, to be applied solely for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1.1) - Paragraph 150(1.1)(b) - Subparagraph 150(1.1)(b)(i) | class-action settlement fund was required to file T3 returns | 188 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | litigation settlement trust with class action beneficiaries required to pay tax and file T3 returns | 123 |
Paragraph 149(1)(z.1)
Administrative Policy
19 January 2006 External T.I. 2006-0165471E5 F - Fiducie exemptée d'impôt
As per the CRA summary, the income of a trust created as a result of a requirement imposed by s. 56 of the Quebec Environment Quality Act is...
Subsection 149(1.1)
Administrative Policy
22 June 2020 External T.I. 2020-0848721E5 F - SSUC - Entité déterminée et institution publique
In the course of a general response to a query by a non-profit organization regarding the exclusion from an "eligible entity" for CEWS purposes of...
Subsection 149(1.2) - Income test
Administrative Policy
17 October 2005 External T.I. 2005-0139031E5 F - Activités exercées en dehors de la réserve
Corporation B (wholly-owned by a corporation held by an Indian band) signed a forest management agreement with the Quebec government respecting...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.6) | timber royalties derived from timber cutting off the reserve had non-reserve situs | 169 |
26 February 2014 External T.I. 2014-0518651E5 - 149(1)(c) - municipal corporation
Respecting whether income received from the Ontario Power Authority would be exempt from tax under paragraph 149(1)(c), CRA referred to the...
Subsection 149(3) - Application of s. (1)
Cases
Actra Fraternal Benefit Society v. Canada, 97 DTC 5243 (FCA)
Investments allocated by the taxpayer to its life insurance fund were in excess of those necessary to meet the risks of the life insurance...
Subsection 149(4) - Idem [Application of s. (1)]
Cases
Lutheran Life Insurance Society of Canada v. The Queen, 91 DTC 5553, [1991] 2 CTC 284 (FCTD)
A fraternal benefit society which carried on a life insurance business, and an accident and sickness insurance business and also other fraternal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 138 - Subsection 138(3) - Paragraph 138(3)(a) | 273 |
See Also
Independent Order of Foresters v. The King, 2023 TCC 123
The taxpayer was a Canadian resident fraternal benefit society and a life insurer providing accident and sickness (“A&S”) benefits, and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 2401 - Subsection 2401(2) - Paragraph 2401(2)(d) | Foresters could reduce its taxable life insurance income by allocating assets under Reg. 2401(2)(d) to its exempt accident and sickness insurance business | 389 |
| Tax Topics - Income Tax Regulations - Regulation 2400 - Subsection 2400(1) - Canadian Investment Fund - Paragraph (a) - Subparagraph (a)(ii) - Clause (a)(ii)(B) | assets in excess of a threshold were to an extent not used or held in the insurance business, and were excluded from CIF | 279 |
Subsection 149(5) - Exception re investment income of certain clubs
Cases
Point Grey Golf & Country Club v. Canada, 2000 DTC 6217 (FCA)
A golf club that qualified as a non-profit organization under s. 149(1)(l) was operating at a slight loss before it raised $4.2 million to help...
See Also
Elmridge Country Club Inc. v. The Queen, 99 DTC 5127 (FCA)
Interest income derived by a golf club from the temporary investment of cash surpluses were taxable. Décary J.A. rejected a submission that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 47 |
Administrative Policy
2016 Ruling 2015-0593841R3 - Sale of XXXXXXXXXX Club
Shares for an incorporated club (likely a golfing club) had outstanding shares held by its members which were entitled to receive dividends,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) | CRA rules on the payment of a substantial capital dividend by a s. 149(1)(l) incorporated golf club | 350 |
13 May 2014 Internal T.I. 2013-0499041I7 - Subparagraph 149(5)(e)(ii)
A private member golf club disposed of the land located across the street from the main entrance which was vacant except for a pump house which...
12 April 2013 External T.I. 2012-0460901E5 - Capital Gain on Sale of Property by NPO
An NPO (the "Club") owned a clubhouse. "In recent years, the Club has reported revenue from bar sales to members and hall rentals to...
2011 Ruling 2011-0400741R3 - Disposition of Property - XXXXXXXXXX Club
ruling that the gain from the sale of a clubhouse and adjacent land would be exempt under s. 149(5)(e).
7 April 2010 External T.I. 2010-0355221E5 F - Paragraphes 145(5) et 122(2)
In finding that the deemed s. 149(5) trust applicable to an NPO (apparently, a trust), that had been settled before 1972, was not grandfathered...
9 July 1993 T.I. (Tax Window, No. 33, p. 7, ¶2642)
S.149(5) will apply to funds accumulated by a non-profit organization to build an arena.
4 September 1991 T.I. (Tax Window, No. 9, p. 15, ¶1439)
S.149(5) would apply to the investment income earned by a minor hockey league on fees collected at the beginning of the season and invested in...
23 February 1990 T.I. (July 1990 Access Letter, ¶1340)
Discussion of treatment of dividends and interest earned.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) | 103 | |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 30 |
IT-83R3 "Non-Profit Organizations - Taxation of Income from Property"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) | 0 |
Paragraph 149(5)(e)
Subparagraph 149(5)(e)(ii)
See Also
Mont-Bruno C.C. Inc. v. The Queen, 2018 TCC 105
A non-profit organization operating a golf course was assessed well beyond the normal reassessment period on the basis that a gain realized by it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | Minister’s Reply lacked cogent factual allegations to justify a statute-barred assessment | 421 |
Subsection 149(10) - Exempt corporations
Administrative Policy
6 March 2015 Internal T.I. 2014-0549761I7 - Internally generated goodwill & excluded property
Before going on to indicate that internally generated goodwill is considered in determining whether shares of a foreign affiliate of a corporation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation | unpurchased goodwill is taken into account | 105 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Excluded Property | unpurchased goodwill is taken into account | 207 |
2013 Ruling 2012-0463361R3 - Withdrawal of Ruling Request
The taxpayer withdrew its request upon being orally informed that:
1) A deemed disposition of property under s. 149(10)(b) at a particular time...
28 April 1994 Internal T.I. 9331017 - TERMINAL LOSSES & LOSS OF TAX EXEMPT STATUS
A terminal loss in the year of change from exempt to taxable status is deductible. The corporation will be able claim that amount in a future year...
22 November 1993 Income Tax Severed Letter 9323365 - Non-profit Organization—Terminal Losses
Where an exempt corporation has depreciable property at the time it ceases to be an exempt corporation, and it realizes a terminal loss pursuant...
Brown, "The Transfer of Property on Death: Ownership, Control and Vesting", 1994 Canadian Tax Journal, Vol. 42, No. 6, p. 1449.
4 December 2014 T.I. 2014-0529681E5 [non-qualified stock dividend on qualified or non-qualified shares]: 1. An RRSP trust, which holds shares of...
Subsection 149(12)
Administrative Policy
1 May 2023 External T.I. 2021-0921101E5 - XXXXXXXXXX
Regarding the $10,000 threshold in s. 149(12), CRA indicated that rentals were to be computed without the deduction of related expenses.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) | s. 149(1)(l) NPO can have share capital, but may not so qualify even if it satisfies the CNFPCA | 313 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | conversion of share corp to non-share corp would not cause a share disposition if no share cancellation and the rights of the shareholders were not substantively altered | 195 |
| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | s. 51 inapplicable to conversion of share corp to non-share corp | 191 |