Ian Gamble has been selected for inclusion in Best Lawyers in Canada in the practice area of Tax Law. Ian has also been listed in the Guide to the World’s Leading Tax Advisers and has previously been noted as among the Top 10 tax advisors in Canada by the International Tax Review. Read complete profile »
CRA narrowly interprets foreign affiliate income recharacterization rule. In 2012-0439661I7 (released February 5, 2014), the CRA narrowly construed the foreign affiliate income recharacterization rule in s. 95(2)(a)(i), which can operate to convert income from property (FAPI) of a foreign…
In 2013-0474431E5, a Canadian parent company (Canco) seconded employees to its foreign affiliate (FA). The seconded employees represented 5% of the FA’s workforce engaged in providing services to arm’s length customers. The FA reimbursed Canco the cost of its…
In 2013-0512581E5, a Canadian company (Canco) sold shares of a Brazilian company (BrazilCo). The resulting gain was taxed in Brazil. The CRA said a foreign tax credit (FTC) would not be available to Canco under s. 126(1) because the…
In 2013-0505911I7, the CRA concluded that “assembly project” in Article 5 of the Canada-Brazil tax treaty should have a meaning similar to “installation project”. Such terms are typically relevant to the question whether a foreign company has a taxable…
In Mckesson Canada Corporation v. The Queen, 2013 TCC 404, the Canadian company in the group (Canco) sold its trade receivables to a Luxembourg company in the group (Luxco) at a discount of 2.206% (from their face amount). In an…
In 2013-0512551I7, the CRA confirmed that Canadian GAAP governs a corporation’s retained earnings for thin capitalization purposes, not the income allocation rules for partnerships in s. 96. In broad terms, a Canadian corporation (Canco) cannot deduct interest expense on…
In 2013-0514701I7, the CRA confirmed that transactions involving bitcoins should be reported as would any other barter transaction. The bitcoin is a virtual currency used to buy and sell goods and services on the Internet. It is not a…
In Devon Canada Corporation v. The Queen, 2013 TCC 415, the Tax Court of Canada (TCC) held that the “successor” resource rules continued to apply in favor of the taxpayer, even though the resource properties in question had been…
In 2013-0499681E5, the CRA confirmed that dissolution of a top-tier partnership eliminates any reserve for qualifying transitional income (QTI) in respect of that partnership. The 2011 federal budget eliminated the deferral of corporate tax through the use of partnerships…
In 2013-0484031E5, the CRA confirmed that a partnership is not a “person” that can acquire legal control of a corporation. Rather, the CRA will look to which partner (or partners) can legally exercise voting rights in respect of the…