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…
In 2014-0527221R3, the CRA considered whether a company resident in Israel would be taxable in Canada on the sale of a Canadian corporation (Holdco) that owned shares of another Canadian corporation (Opco) whose value was derived from underlying Canadian…
Paragraph 6801(d) of the Regulations (Reg. 6801(d)) prescribes an exception to the salary deferral arrangement rules for a deferred share unit (DSU) plan that provides for the following: (i) the employee (or his estate) may receive an amount after the…
In 2014-0547321C6, the CRA considered a ruling request which involved a tax-deferred transfer (rollover) of depreciable property to a captive Canadian partnership under s. 97(2), followed immediately thereafter by the contribution of cash to the partnership by a non-resident…