In 2014-0534841C6, the CRA commented on the definition of majority-interest beneficiary in subsection 251.1(3) of the Income Tax Act. The CRA is of the view that a person does not have to be a beneficiary of a trust to…
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…
The recent decision of Hauser v. R. 2014 TCC 328 is an illustration of the principles to be applied when determining whether moving expenses are deductible. The taxpayer moved in order to have a shorter commute to her new job. The…
On February 11, 2014, the federal government announced that it intended to repeal the so-called “immigrant trust” exception found in section 94 of the Income Tax Act (Canada) (the “ITA”). Due to the limited transitional rules provided (and no grandfathering),…
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…
On October 21, 2014, Minister of Finance, Michael De Jong, tabled the proposed Liquefied Natural Gas Income Tax Act (the “LNG Act”) for first reading in the BC legislature. The LNG Act imposes taxation on net income derived from natural…
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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