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…
Paragraph 3 of Article XXIX-A of the Canada-US tax treaty (Treaty) can extend treaty benefits to a US resident that is not otherwise a qualifying person under the Treaty with respect to certain income derived from Canada. Such income must…
In Gaumond v. The Queen, 2014 TCC 339, a shareholder forgave his loan to a company as part of the company’s proposal in bankruptcy, which proposal allowed the company to emerge from bankruptcy and continue its R&D activities. The…
It’s early 2015 and the CRA continues to aggressively audit Tax-Free Savings Accounts (TFSAs), going as far back as 2009 when TFSAs were first introduced. And why not? There is typically no time limit on issuing these types of assessments.…
Occasionally, the CRA agrees with a taxpayer, in advance, to assess tax in a particular way. Those agreements arise most frequently in the context of advance income tax rulings but, as in Szymczyk v. The Queen, 2014 TCC 380,…
In Fairmont Hotels Inc. et al v. A.G. Canada, 2014 ONSC 7302, the Superior Court of Ontario exercised its discretion to allow Canadian companies in a group to retroactively convert share redemptions (in 2007) into loans instead, under the equitable…
Where a non-resident of Canada sells taxable Canadian property (TCP), the purchaser of such property can be liable for withholding tax under s. 116. In Olympia Trust Company v. The Queen, 2014 TCC 372, the trustee of a self-directed…
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…