In 2014-0529981I7, the CRA Rulings Directorate considered a case where partnership interests and a debt obligation (Particular Note) owed by a partnership were sold mid-year. No portion of the partnership’s loss for the year was allocated to the selling…
In Repsol Canada Ltd. v. The Queen, 2015 TCC 21, the Tax Court of Canada found that a deep water pier and plant (Facility) in New Brunswick qualified as a processing asset included in Class 43 for the 2007…
In 2013-0509771E5, the CRA confirmed that oil & gas royalties earned by a U.S. resident are subject to tax in Canada and no relief is available under the Canada-US tax treaty (Treaty). Such royalties constitute income from immovable property…
In 2014-0541921E5, the CRA said that no debt forgiveness should arise under s. 80 if a debtor has a contingent right to reduce a commercial debt obligation, where it is reasonable to conclude (having regard to all the circumstances)…
In 2014-0539191E5, a Canadian corporation (A Co) with a December 31 taxation year end had a significant interest in a partnership (Partnership) with a fiscal period also ending December 31. On August 1, 2014 A Co amalgamated with its…
In two recent interpretations, the CRA confirmed that it has no power to refund tax where the applicable limitation period had expired.
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A tax-free inter-corporate dividend in Canada can sometimes be converted into a taxable capital gain under s. 55(2) if the purpose of the dividend (or the effect of the dividend if the share is redeemed) is to reduce the accrued…
In 2014-0525231I7, a Canadian company (Canco) received a dividend from its foreign affiliate (FA) in Japan then sold the shares of FA at no gain. Canco had no other income from a source in Japan. The pre-sale dividend was…
In Kennedy & Ors v. Kennedy & Ors, [2014] EWHC 4129 (Ch), a voluntary distribution (appointment) of shares was mistakenly made from a trust to a beneficiary, generating a large tax liability in the UK. The UK’s High Court…
In 2014-0529311E5, the CRA considered a hypothetical case where a partner was selling its partnership interest and wished to cause a fiscal year end for the partnership before the sale (under s. 249.1(7)). This change would allow the departing…