In 2014-0538591I7, the CRA confirmed that a loss due to foreign exchange (FX) fluctuations could be realized by a Canadian parent (Canco) on its shares of its wholly-owned foreign affiliate (FA) on a liquidation and dissolution of the FA.…
In Advance Tax Ruling 2011-0418571R3 (recently released), the CRA ruled that an amendment to an existing plan established pursuant to Regulation 6801(d) (DSU plan), which amendment permitted the value of a participant’s DSUs to be paid in common shares…
Under s. 98(3), a partnership may be dissolved on a tax-deferred basis generally if the partners receive an undivided interest in the partnership’s property and an election is timely filed with the Canada Revenue Agency (CRA). In 2014-0540611E5, the…
In The Estate of the Edward S. Rogers v. The Queen, 2014 TCC 348, the Tax Court of Canada (TCC) held that the surrender of stock options in 2007 to a non-arm’s length corporate employer, in exchange for a cash…
In 2013-0499121E5, the CRA considered a simple case where an upstream loan was made to a Canadian parent (Canco) by a second tier foreign affiliate (FA 2), and was effectively sheltered by Canco’s exempt surplus in respect of FA…
In 2014-0536581I7, the CRA was asked why the so-called fresh start rule for foreign affiliates (s. 95(2)(k) & (k.1)) applies only to income from a foreign affiliate’s business and not to the affiliate’s income from property. In response, the…
In 2013-0506551E5, the CRA confirmed its view that a loan made after March 28, 2012 cannot benefit from the new regime for a “pertinent loan or indebtedness” (PLOI, s. 15(2.11)) if such loan were part of a “series of…
In 2014-0531441E5, the CRA confirmed that payments to a US resident under an unfunded long-term disability (LTD) plan by a Canadian employer would be considered salary. As such, the payment would be subject to employment-related withholdings in Canada (under…
In 0742443 B.C. Ltd. v. The Queen, 2014 TCC 301, the company provided storage units along with other services. The company argued that its net revenue from all activities constituted active business income for purposes of the small business…
The CRA recently reversed two prior positions in the foreign affiliate context: one on the redemption of preferred shares in a controlled foreign affiliate, the other on the recharacterization rule in s. 95(2)(a)(ii)(D).
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