In 2012-0432861E5, the CRA was asked whether a general partner would be required to obtain a clearance certificate under s. 159 on the liquidation of a limited partnership. Further, if such a certificate were required, would it need to…
In 2012-0441091E5, the CRA said that fees paid to a non-resident for the use of custom software in Canada were exempt from Canadian withholding tax. The situation involved a non-resident company (NR Co) that designs and develops computer software…
In Bioartificial Gel Technologies (Bagtech) Inc. v. The Queen, 2012 TCC 12, the Tax Court of Canada (TCC) found that the company was a Canadian-controlled private company (CCPC) even though a majority of the company’s voting shares were collectively…
In Prudential Plc v. Special Commissioner of Income Tax, [2013] UKSC 1, the UK Supreme Court held (by a majority decision) that the common law protection afforded to a client under legal advice privilege could not be extended to…
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…