In 2013-0474111I7, the Rulings Division advised a local Tax Services Office that an acquired company could not reverse prior-year CCA claims so as to revive expired losses. The facts indicated that in taxation years before the company was acquired,…
In 2012-0468931C6, the CRA confirmed that the date of disposition for shares sold on a stock exchange is the “settlement date”. When shares are sold on a stock exchange, typically the settlement date is two or three days after…
In 2012-0455081I7, the Canada Revenue Agency (CRA) considered costs of constructing a commercial building in circumstances where the land was owned by one company in a corporate group (A Co) and leased to another company in the group (B…
In 2012-0443471E5, the Canada Revenue Agency (CRA) confirmed its position that so-called “tracking shares” are “taxable preferred shares”. The term “tracking shares” (as well as “alphabet shares” and “targeted shares”) has typically been used to describe a special class…
In 2012-0449371I7, the Canada Revenue Agency (CRA) confirmed that a both an upstream and a downstream absorptive merger under US corporate law would qualify for tax-deferred (rollover) treatment under proposed new s. 87(8.2). The facts involved a Canadian company…
On March 21, 2013 the federal government released its budget (http://www.budget.gc.ca/2013/doc/plan/toc-tdm-eng.html).
Mining Industry. The CEE (100%) deduction for intangible mine development expenses will become a CDE (30% per year) deduction, to be fully phased in after calendar 2017. The…
In 2011-0431871I7 (released last week), the CRA’s Ruling Division (Rulings) advised a local Tax Services Office (TSO) that a portion of a “procurement licence fee” under franchise agreement would be subject to Canadian withholding tax. Briefly, a US company…
In 2009-0342861I7 (released last week), the CRA said that the anti-avoidance rule in s. 94.1 should not apply to the particular foreign affiliate structure presented. Briefly, s. 94.1 contains an anti-avoidance provision that can apply where a taxpayer invests…
In Ollenberger v. The Queen (2013 FCA 74), the Federal Court of Appeal (FCA) reversed the Tax Court of Canada (TCC) and held that “active business” is specifically defined in s. 248(1) to mean “any business” other than two…
In 2012-0445891E5, the CRA confirmed its view that contributed surplus in Canada’s thin capitalization formula is the amount that is, or would be, recognized as contributed surplus under Canadian GAAP. The thin capitalization formula generally places a limit on…