On February 19, 2015, the federal government released proposed amendments to the Income Tax Regulations which would generally allow for accelerated capital cost allowance (“CCA”) treatment in respect of certain property used in connection with liquefying natural gas. The proposed…
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…