In 2012-0459411C6, the CRA considered the allocation of cross-border stock option income between two or more countries. The question typically arises in cases where the relevant employee performs employment duties both inside and outside Canada. The CRA confirmed that…
Non-residents are taxable in Canada in respect of capital gains realized on TCP (subject to an exemption that may be available in a tax treaty). In 2012-0453021C6, the CRA was asked whether shares of a private company (Mortgage Co)…
At the 2012 IFA conference, the CRA was asked to confirm its position on when a non-resident would be considered the beneficial owner of income (such as dividends, interest, or royalties) for tax treaty purposes. Canada’s tax treaties generally require…
In NRT Technology Corp v. The Queen, 2012 TCC 420, a company (NRT) acquired a target company with substantial business losses (Losses). NRT subsequently sought to use the Losses against its own taxable business income in a year following…
At the 2012 IFA conference, the Canada Revenue Agency (CRA) commented on three items of interest: treaty-benefit declarations by non-residents, partnerships that sell taxable Canadian property, and Reg. 105 withholding for partnerships that provide services in Canada.
o Treaty-benefit…
The Canadian tax system generally seeks to eliminate double tax in respect of dividends to Canadian individuals out of corporate income that was subject to either the “small business rate” or the “general rate” of corporate tax. This is achieved…
The CRA does not consider a US limited liability company (LLC) itself to be a resident of the US for purposes of benefits under the Canada-US tax treaty (Treaty). However, pursuant to Article IV(6) of the Treaty, the CRA will…
In 2012-0438691E5, the Canada Revenue Agency (CRA) considered a US corporation (US Co) that shipped inventory to an unaffiliated customer’s warehouse in Canada. Title to the inventory remained with US Co until such time as the customer required the…
In 2012-0436181E5, the Canada Revenue Agency (CRA) disagreed with the Tax Court decision in Tawa Developments Inc. v The Queen 2011 DTC 1324, and said the Crown may legally confiscate a dividend refund under s. 129 if the taxpayer…
In Toastmaster Inc. v. MNR, 2012 FCA 317, the Canada Revenue Agency (CRA) denied the non-resident corporation’s request for discretionary relief from interest on taxes. On a judicial review of that decision, the Federal Court upheld the CRA’s decision. …