Words and Phrases - "rentals"
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 |
The Queen v. St. John Shipbuilding & Dry Dock Co. Ltd., 80 DTC 6272, [1980] CTC 352 (FCA)
Thurlow, C.J. stated (p. 6275) that "'royalties' ... connotes a payment calculated by reference to the use or to the production or revenue or profits from the use of the rights granted" and that "neither 'rentals' nor 'royalties', in the ordinary connotation ... includes a lump sum payment for the use of or for the privilege of using property indefinitely." Accordingly, lump sum payments made by a Canadian shipbuilder for technical data contained on tapes pursuant to non-exclusive licence that placed no relevant restrictions as to how many times or over what period of time the shipbuilder could use the data in its own operations, did not represent "rentals and royalties" for purposes of paragraph 6(a) of the Protocol to the 1942 Canada-U.S. Convention.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | 36 |