(2)-(35)

Table of Contents

Subparagraph 248(30)

Subsection 248(2) - Tax payable

Cases

R. v. Simmons, 84 DTC 6171 (Nfld. Prov. Ct.)

"[O]n the point raised by Mr. Sopinka that the charges were premature ... I will follow the Myers case (R. v. Myers and Inter Publishing Co. Ltd.,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 244 - Subsection 244(4) 35

Subsection 248(34)

Paragraph 248(34)(a)

Subsection 248(37)

Paragraph 248(37)

Paragraph 248(37)(e)

Paragraph 248(37)(f)

Subsection 248(38)

Subsection 248(39)

Subsection 248(41)

Subsection 248(3) - Property subject to certain Quebec institutions and arrangements

Cases

Canada v. Construction Bérou Inc., 99 D.T.C 5869 (FCA)

Létourneau J.A. found (at p. 5872) that s. 248(3) "is intended to treat beneficial ownership of property in the same way as various forms of...

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Subsection 248(4) - Interest in real property

Administrative Policy

16 March 2015 Internal T.I. 2013-0479861I7 - Section 116 & forfeited deposits on real property

A non-resident vendor received a deposit under an agreement for sale of B.C. real property, which will be forfeited to it due to failure of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) forfeited sale deposit was proceeds of security interest rather than of tcp 264
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) forfeited sale deposit was proceeds 79

13 September 2012 CICA Compliance Roundtable, 2012-0453021C6 - Taxable Canadian Property

Respecting a question as to whether shares of an unlisted corporation would be taxable Canadian property if during the preceding 60 months "most...

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2001 Ruling 2001-008388

A mortgage bond secured by a leasehold interest in land would constitute a mortgage secured by real property situated in Canada in light of s....

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18 January 1993 External T.I. 5-921718

A three-year second mortgage loan, bearing interest at 11% per annum, made by a non-resident to a Canadian partnership provided that on maturity...

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December 1990 TI 1990-240

In light of s. 248(4), leasehold improvements to a leasehold interest would, if rented, be considered to give rise to income from real property...

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15 January 1987 TI 7-1282

Although s. 248(4) deem leases (in this case grazing leases on Crown lands) to be interest in real property, the definition of qualified farm...

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Subsection 248(5) - Substituted property

Cases

Canada v. Sommerer, 2012 DTC 5126 [at 7219], 2012 FCA 207

In determining whether s. 75(2) should apply to the taxpayer, Sharlow J.A. stated (at para. 46):

This provision must be read together with...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) Austrian foundation likely not a trust 181
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) does not apply to FMV purchases 236
Tax Topics - Treaties treaty applies to economic double taxation 356
Tax Topics - Treaties - Article 13 attributed gain not included 415

See Also

St-Pierre c. La Reine, 2008 DTC 3730, 2007 TCC 90

The taxpayer transferred shares of a corporation ("3101") to a management company controlled by him and the management company disposed of a...

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Administrative Policy

22 June 2016 Internal T.I. 2016-0632821I7 F - 93(2.01) & Capital Contribution

Canco contributed (for no share consideration) its shares of a non-resident Finco subsidiary (Luxco2 – which previously had paid exempt...

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Words and Phrases
substituted
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) a contribution of FA1 shares to FA2 causes the FA2 shares to be substituted property for s. 93(2.01) purposes 195
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B) inter-affiliate loan generating deemed active business funded out of an interest-free loan from Canco 105

25 September 2013 Internal T.I. 2013-0476311I7 F - 93(2), 93(2.01) - Share substituted

In the course of reviewing the facts summarized under s. 93(2.01), CRA stated (TaxInterpretations translation):

Subsection 248(5) contemplates...

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10 May 2013 Internal T.I. 2012-0464901I7 - 93(2), 93(2.01) - Share substituted

Canco owns all the shares of Forco1, which it transfers to Forco2 for a promissory note payable in U.S. dollars, and then transfers the note to...

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6 April 1992 T.I. 920265 (March 1993 Access Letter, p. 71 ¶C56-218; Tax Window, No. 18, p. 1, ¶1852)

Where, in 1978, a taxpayer transferred property to his spouse who, in turn, transferred the property to a holding company for preferred shares and...

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15 January 1992 T.I. (Tax Window, No. 15, p. 12, ¶1700)

Where a minor son received shares from his father on a rollover basis pursuant to former s. 73(5), realizes an exempt capital gain on a later...

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Subsection 248(6) - “Class” of shares issued in series

See Also

Bowater Canadian Ltd. v. R.L. Crain Inc. (1987), 62 OR (2d) 752 (C.A.)

The articles of amalgamation of the corporation provided for common shares, and for "special common shares" which were entitled to ten votes per...

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Subsection 248(7) - Receipt of things mailed

See Also

Canada v. Schafer, 2000 DTC 6542 (FCA)

A notice of assessment that the trial judge found the respondent had never received was deemed by s. 334(1) of the ETA to have been received by...

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Sameden Oil of Canada, Inc. v. Provincial Treasurer of Alberta (1993), 102 DLR (4th) 125 (Alta. C.A.)

The taxpayer mailed his 1988 corporate tax return by registered mail from the United States on June 30, 1989, and the return was received by the...

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Words and Phrases
file

Rolling v. Willann Investments Ltd. (1989), 63 DLR (4th) 760 (Ont CA)

An offer was considered to have been "delivered" to a person ("Willann") when it was faxed to Willann:

"Where technological advances had been made...

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Subsection 248(8) - Occurrences as a consequence of death

Paragraph 248(8)(a)

See Also

Bueti v. The Queen, 2015 DTC 1213 [at 1374], 2015 TCC 265

Owen J made a factual finding that a particular property (a house in the estate of the taxpayer's father) was purchased for cash consideration by...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Ownership residuary beneficiary had no ownership of estate property 118
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) residuary beneficiary did not acquire as a consequence of death 250

Husel Estate v. The Queen, 94 DTC 1765 (TCC)

Kempo TCJ. found (at p. 1769) that s. 248(8)(a) was added "to obviate the denial of a rollover in situations where an individual, qua beneficiary,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 49

Administrative Policy

10 June 2016 STEP Roundtable Q. 10, 2016-0645781C6 - US Revocable Living Trusts

A U.S. resident (the “grantor”) settles a “revocable living trust” with property including taxable Canadian property. The grantor: is the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) U.S. revocable living trust is not a bare trust 171
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) transfer to remainder beneficiary of a U.S. revocable living trust on death does not occur as a consequence of death 126

16 December 2014 External T.I. 2014-0539841E5 F - Testamentary Trust

Would a trust created by will in favour of the child of the deceased (the "Child Trust") cease to qualify as a testamentary trust in the year of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust transfer from one testamentary trust to another pursuant to a will direction treated as a non-tainting contribution from the deceased 152

12 June 2012 STEP CRA Roundtable, 2012-0442931C6 - 2012 STEP Question 8

In the situation where the estate trustees are instructed under the Will to set up a number of trusts from the residue of the estate, CRA...

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11 January 2012 STEP Roundtable, 2011-0402291C6 - Subsection 248(8)-Intestacy-Transfer of Property

Where a taxpayer dies intestate, then provided the property of the deceased is distributed to the beneficiaries in accordance with the shares...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(l) 108
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) non pro rata allocations to beneficiaries 124

5 May 1995 T.I. 950098 (C.T.O. "Assumption of Liabilities")

A transfer of shares of a private corporation made to the surviving spouse after her agreement to assume liabilities of the estate and provide...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 68

17 August 1994 T.I. 941053 (C.T.O. "Trusts - 'As a Consequence of the Taxpayer's Death'")

A discretion accorded by the will to the executors to determine the particular assets to be distributed to the spouse or spousal trust of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 41

Articles

Hoffstein, Lee, "Restructuring the Will and the Testamentary Trust: Methods, Underlying Legal Principles and Tax Considerations", Estates and Trust Journal, Volume 13, 1993, p. 42.

Paragraph 248(8)(b)

Cases

Biderman v. The Queen, 2000 DTC 6149, 2001 FCA 269 (FCA)

The taxpayer, who had tax debts on his death, made an "informal" disclaimer of his beneficial interest under the estate of his wife five days...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) conduct subsequent to death inconsistent with disclaimer 150

See Also

Sembaliuk v. Sembaliuk (1984), 43 R.F.L. (2d) 425 (Alta. C.A.)

"[A] disclaimer, being an avoidance of a gift, is not a conveyance of the property comprised in that gift."

Montreal Trust Co. v. Matthews, [1979] 3 WWR 621 (BCSC)

"A disclaimer can be made by deed, writing, under hand only or even as a result of contract, as any document is admissible so that evidence of...

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Administrative Policy

10 April 1997 T.I. 970618

Where children surrender (as defined in s. 248(9)) their interest in an RRSP and the surviving spouse (their mother) thereby acquires an interest...

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9 March 1992 T.I. (Tax Window, No. 17, p. 9, ¶1788)

Discussion of factors relevant to determining whether a transfer of rights under a will by a beneficiary is a true disclaimer, release or surrender.

8 March 1991 T.I. (Tax Window, No. 1, p. 21, ¶1152)

An election under the Family Law Act (Ontario) by a surviving spouse is a disclaimer for purposes of s. 248(8)(b), with the result that the...

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22 February 1990 T.I. (July 1990 Access Letter, ¶1348)

IT-385R, para. 6, continues to reflect RC's position where a taxpayer renounces any part of his income interest in a trust subsequent to having...

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Paragraph 248(8)(c)

Administrative Policy

S6-F2-C1 - Disposition of an Income Interest in a Trust

1.14 When subsection 248(8) applies, the more restrictive requirements of the definition of release or surrender found in subsection 248(9) must...

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Subsection 248(10) - Series of transactions

Cases

Groupe Honco Inc. v. Canada, 2014 DTC 5006, 2013 FCA 128, aff'g 2013 DTC 1032 [at 149], 2012 TCC 305, infra

On January 13, 1999, a newly-incorporated corporation ("New Supervac") was leased the assets of an unrelated corporation ("Old Supervac"), coupled...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.1) two or three main purposes 73

Copthorne Holdings Ltd. v. Canada, 2012 DTC 5006 [at 6536], 2011 SCC 63, [2011] 3 S.C.R. 721

The taxpayer's shareholders circumvented the rule in s. 87(3), which required that the paid-up capital ("PUC") of a subsidiary corporation...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Stare Decisis high threshold for reversing not met 193
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit 315
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of s. 87(3) is to avoid preservation of PUC on parent and sub amalgamation 372
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius 109

Toronto-Dominion Bank v. Canada, 2011 DTC 5125 [at 6061], 2011 FCA 221, [2011] 6 CTC 19

A transitional provision in the Act provided that the old s. 55(1) would apply to a transaction if it were "part of a series of transactions,...

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Lipson v. Canada, 2007 DTC 5172, 2007 FCA 113, aff'd 2009 DTC 5015 [at 5528], 2009 SCC 1

The taxpayer's wife ("Jordanna") borrowed $562,500 from the Bank of Montreal under an interest-bearing demand promissory note in order to purchase...

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Canada Trustco Mortgage Co., v. The Queen, 2005 DTC 5523, [2005] 2 S.C.R. 601, 2005 SCC 54

The Court stated (at 5528) that s. 248(10) has application:

"where the parties to the transaction 'knew of the ... series, such that it could be...

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Words and Phrases
contemplation
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit 126
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of CCA provisions relied on cost irrespective of risk mitigation 207
Tax Topics - Statutory Interpretation - Certainty 127
Tax Topics - Statutory Interpretation - Ordinary Meaning primacy to ordinary meaning if unequivocal 90

OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260

Although the "common law" meaning of a series of transactions was transactions each of which is pre-ordained to produce a final result, s. 248(10)...

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See Also

Oxford Properties Group Inc. v. The Queen, 2016 TCC 204

A corporation (“BPC”), which was mostly owned by a Canadian pension fund (“OMERS”), obtained the agreement of a predecessor of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period 557
Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) purpose not to tax underlying recapture on subsequent LP unit sale 431
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) purpose: to push down ACB of shares of sub to qualifying non-depreciable property 489
Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) subsequent amendment shed light on scope of previous version 107
Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) S. 100 operates only on outside basis gain 290
Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) Parliament provided safe harbour for sales after 3 years 206
Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) purpose: to preserve high outside basis through push down 293

Pièces automobiles Lecavalier Inc. v. The Queen, 2014 DTC 1126 [at 3319], 2013 TCC 310

A Canadian subsidiary ("Greenleaf") of Ford U.S. paid down to $9,750,000 (including accrued interest) a debt of $24,369,439 (plus accrued...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence Canadian tax accountant's testimony on US tax consequences accorded little weight 152
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) debt-paydown transactions were avoidance transactions 268
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) avoidance of debt forgiveness rules was abusive 277

MIL (Investments) S A v. The Queen, 2006 DTC 3307, 2006 TCC 460, aff'd 2007 FCA 236

In March 1993 an individual ("Boulle") transferred his shares of a Canadian public junior exploration company ("DFR") to the taxpayer, which was a...

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Canutilities Holdings Ltd. v. The Queen, 2003 DTC 1029 (TCC), rev'd in part 2004 DTC 6475, 2004 FCA 234

Normal course dividends paid by the taxpayers were not paid in contemplation of transactions in which their common shares of a public company were...

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Les Placements E&R Simard Inc. v. The Queen, 97 DTC 1328 (TCC)

On September 10, 1988, the taxpayer transferred its assets to a subsidiary ("Alimentation 1988") in consideration for a demand promissory note and...

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Craven v. White, [1988] BTC 268 (HL)

Lord Jauncey stated:

"If it were appropriate to prepare a formula defining 'composite transaction' in the light of the passages in the speeches in...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Tax Avoidance 181

Administrative Policy

24 October 2012 Internal T.I. 2012-0456711I7 F - Inadmissibilité à la déduction pour GC

Contains a general discussion of the series of transactions doctrine in the context of a proposes asessment under s. 110.6(7)(b). CRA notes that...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) 47
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.2) no retroactive adjustment of capital gains exemption 113

17 November 2000 External T.I. 1999-000858

"A particular transaction will be part of a series of transactions if that transaction is logically and reasonably connected to another...

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23 August 1991 T.I. (Tax Window, No. 8, p. 21, ¶1409)

A preliminary transaction will form part of a series of transactions that includes subsequent transactions if at the time of the preliminary...

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9 May 1990 Meeting (October 1990 Access Letter, ¶1474)

"If at the time of the 'butterfly' reorganization the shareholders had formed the intention to sell their shares, and their shares are eventually...

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3 November 89 T.I. (April 90 Access Letter, ¶1172)

"A preliminary transaction will form part of the series of transactions or events determined with reference to subsection 248(10) if, at the time...

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Articles

Justice Marshall Rothstein, "An Overview of the Supreme Court of Canada", Bulletin for International Taxation (IBFD), January/February 2016, p. 20.

Resort to foreign judgments (p. 25)

An example concerns the interpretation of a "series of transactions" under a general anti-avoidance rule...

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Benjamin Alarie, Julia Lockhart, "The Importance of Family Resemblance: Series of Transactions After Copthorne", Canadian Tax Journal (2014) 62:1, 273-99.

Extension of common-law series (pp. 76-77)

… Kandev et al. argue that the purpose of subsection 248(10) is merely to bring into the Act the...

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David M. Williamson, Michael H. Manly, "Subsection 69(11) - Unexpected Problems from Inappropriate Positions", Corporate Structures and Groups, Vol. V, No. 4, 1999, p. 285.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) 0

Thivierge, "Emerging Income Tax Issues", 1993 Conference Report, c. 4

J. Tiley, "Series of Transactions", 1988 Conference Report, c.8.

Subsection 248(16) - Goods and services tax — input tax credit and rebate

Administrative Policy

27 November 2014 External T.I. 2013-0503861E5 F - Application du paragraphe 248(16)

Where a building drop-down under s. 85(1) generates an ITC to the transferor under ETA s. 193, such ITC does not reduce the UCC of the property...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) ETA s. 193 ITC claim does not reduce UCC under s. 85(1)(e)(i) 193

3 January 1992 T.I. (Tax Window, No. 15, p. 24, ¶1683)

A cash-basis taxpayer will be considered to have received a GST input tax credit in the period for which the refund is claimed on the GST return.

19 August 1991 Memorandum (Tax Window, No. 8, p. 12, ¶1395)

A GST input tax credit is considered to be received or credited in the reporting period in which the claim was made rather than the reporting...

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22 March 1991 T.I. (Tax Window, No. 1, p. 7, ¶1164)

A GST rebate which is claimed by a partner of a partnership at the end of the 1991 calendar year in respect of expenses incurred by him personally...

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Subsection 248(18) - Goods and services tax — repayment of input tax credit

Administrative Policy

19 August 1991 Memorandum 911368(E)

Where the taxpayer was assessed in July 1993 to deny an input tax credit, appealed successfully to the Tax Court but with the Minister then...

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Subsection 248(20) - Partition of property

Administrative Policy

9 June 2015 External T.I. 2014-0554381E5 F - Copropriété par indivision - partage de biens

Mr A held land used by him in farming in co-ownership with his brother. Following a partition and cessation of farming, Mr A became the sole...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) retention of original acquisition date under s. 248(20)(b) 143

25 September 2000 External T.I. 2000-0038595

"In a situation where more than one property is acquired under one deed, such properties would be considered to be one property for purposes of...

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1996 Ruling 961817 Renewed as 970265 [partition of securities holdings]

A partnership holding publicly-traded shares and limited partnership units was to be wound-up under s. 98(3), with the shares and units (while...

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27 April 1998 Memorandum 980456 [partition of milk quota]

The partition of a jointly owned non-real estate asset, such as a milk quota, could be accomplished under either s. 248(20) or (21) of the Act...

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23 December 1992 T.I. (Tax Window, No. 27, p. 20, ¶2341) [partition of non-adjacent properties]

If non-adjacent parcels of land are acquired at one time and under one deed, they will be considered as property that can be partitioned under s....

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24 February 1992 Memorandum (Tax Window, No. 13, p. 17, ¶1622)

Where an undivided interest in partnership property is distributed to each partner in accordance with s. 98(3), any partition of property which is...

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23 October 1991 T.I. (Tax Window, No. 12, p. 18, ¶1552)

Where a co-owner exchanges an undivided interest in a property for an undivided interest in each subdivided parcel, followed by an exchange of the...

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Subsection 248(21) - Subdivision of property

Administrative Policy

2011 Ruling 2011-0408781R3 - Partition of Property - Land and Buildings

A rental property comprised of land and three buildings, is beneficially owned by three co-owners, holding their interests as capital property. S....

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1 September 2010 External T.I. 2009-0338641E5 - Partition of property

In a general response, CRA stated:

Subsection 248(21) applies where a co-owner receives, upon the partition of "a property", title to a separate...

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8 August 2005 External T.I. 2005-0145251E5 - Partition of Property

The summary states:

Can a property with two buildings on it be partitioned so that each former co-owner receives one building?...No. The buildings...

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2003 Ruling 2003-003336

A professional partnership in the health field winds up its operations with a view to electing under s. 98(3), on the winding-up each partner...

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2003 Ruling 2003-000951

A master partnership invests in a lower-tier operating partnership which, in turn, transfers a business acquired by it to a newly-formed taxable...

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28 October 2002 External T.I. 2002-013478

Respecting the situation where corporations own undivided interests in shares of public corporations and in an interest in a mutual fund trust...

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17 September 1996 T.I. 962525 (C.T.O. "ACB of Partitioned Interest")

Where three parties jointly own equal undivided interests in a property, and the property is subdivided into three lots with each party having...

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12 July 1995 T.I. 942878 (C.T.O. "General Scheme of Partition")

After a detailed description by the correspondent of the manner in which the partition of real property in B.C. typically is undertaken, RC...

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1994 A.P.F.F. Round Table, Q. 31

"The conditions for applying subsection 248(21) ... cannot be met where the property that is the subject of a parition is an undivided interest in...

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27 January 1992 T.I. (Tax Window, No. 15, p. 18, ¶1687)

S.248(21) generally will apply where a piece of land has been subdivided into several parcels and the subdivided parcels are then partitioned...

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8 January 1992 T.I. (Tax Window, No. 15, p. 17, ¶1686)

The rules in s. 248(21) could apply where there is a stratification of a condominium building and a subsequent proportionate distribution of the...

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Articles

McMullen, "Tax Considerations in the Reorganization of Partnerships", 1994 Corporate Management Tax Conference Report, c. 6.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) 0

Subsection 248(22) - Matrimonial regimes

Administrative Policy

Tax Professionals Mini Round Table - Vancouver - Q. 32 (March 1993 Access Letter, p. 110)

S.248(22) and (23) are not restricted in their application to the ownership of property under the matrimonial regimes in the Province of Quebec.

Subsection 248(24) - Accounting methods

Administrative Policy

7 August 1991 T.I. (Tax Window, No. 7, p. 18, ¶1386)

The enactment of s. 248(24) does not affect the computation of safe income under s. 55(2)

Subsection 248(25) - Beneficially interested

Cases

Canada v. Propep Inc., 2010 DTC 5088 [at 6882], 2009 FCA 274

The taxpayer was owned by another corporation (9059) which, in turn, was owned by a Quebec trust whose first-ranking beneficiary was 9059, and...

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Administrative Policy

10 October 2014 APFF Roundtable Q. 4, 2014-0538231C6 F - 2014 APFF Roundtable, Q. 4 - Beneficially interested

Can a legatee by particular title referred to in s. 808 of the Quebec Civil Code be considered a person beneficially interested pursuant to...

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10 October 2014 APFF Roundtable, 2014-0538021C6 F - Meaning of beneficiary

In Fiducie Famille Salammbô c. Ville de Montréal (2011 QCCQ 11322), a mutations tax case, the Court found that potential non-designated...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) beneficiary under s. 55(5)(e)(ii) includes beneficially interested under s. 248(25)(a) 251

8 October 2004 APFF Roundtable Q. 28, 2004-0086961C6

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) s. 248(25)(a) does not expand "beneficiary" in s. 55(5)(e)(ii) 71

26 June 2012 External T.I. 2011-0417391E5 F - Bien remis à une fiducie

Where the trustees of a Quebec inter vivos trust have the power to appoint beneficiaries including a testamentary trust. However, a particular...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust appointment by inter vivos trust 284

Articles

Michael Goldberg, "Not Quite Chicken Soup – Part II: Are Powers to Add and Remove Beneficiaries Safe for Canadian Family Trust Precedents", Tax Topics, Number 2175, November 14, 2013, p.1.

Effect of power to add and remove beneficiaries (PARB) (p. 2)

Does the inclusion of a PARB mean that pursuant to paragraph (1) of this definition...

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Subsection 248(25.1) - Trust-to-trust transfers

Administrative Policy

10 February 2003 External T.I. 2003-014702

An election made by the former trustees, including an election under s. 259(3), will continue to be valid following a trust-to-trust transfer...

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Subsection 248(26) - Debt obligations

Cases

Imperial Oil Ltd. v. Canada, 2004 DTC 6702, 2004 FCA 361, rev'd 2006 SCC 46

S.248(26) had no application to the issuance of a U.S.-dollar debenture by the taxpayer because there was no doubt about the date upon which the...

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Administrative Policy

20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness

In finding that s. 80 would not apply to the settlement under Part III of the Bankruptcy and Insolvency Act of a debt for unremitted GST and QST,...

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Subsection 248(28) - Limitation respecting inclusions, deductions and tax credits

Cases

Bakorp Management Ltd. v. Canada (National Revenue), 2016 FCA 74

After noting (at para. 23) that the interpretation advanced by the taxpayer would have the effect of generating the accrual of refund interest to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 187 - Subsection 187(2) overpayment of Part IV tax for a subsequent year did not cut off interest for its underpayment in the previous year before application of the overpayment by CRA 395

Imperial Oil Ltd. v. Canada, 2004 DTC 6702, 2004 FCA 361, rev'd 2006 SCC 46

After finding that the taxpayer was entitled to deduct 75% of the difference between the Canadian- dollar equivalent of a U.S. dollar debenture at...

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Holder v. Canada, 2004 DTC 6413, 2004 FCA 188

The taxpayer designated an elected amount of $50,010 in an election under s. 110.6(19) in respect of shares that were non-qualifying real property...

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Kruco Inc. v. The Queen, 2001 DTC 668 (TCC), aff'd 2003 FCA 284

A proposed adjustment of the Minister to the safe income of a corporation from which the taxpayer received a deemed dividend, which entailed the...

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MNR v. Chrysler Canada Ltd., 92 DTC 6346 (FCTD)

S.4(4) precluded the value of shares being taxed as income from employment in both the year of transfer of the shares to a trust (under s. 7(1))...

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R. v. Inland Revenue Commissioners, ex parte Woolwich Equitable Buildings Society, [1990] BTC 490 (HL)

After referring (p. 500) to the "presumption against double taxation" and the "presumption that income tax, being an annual tax is payable only on...

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Robertson v. The Queen, 90 DTC 6070 (FCA)

Before going on to find that the amount of a non-statutory stock option benefit effectively was taxable at the time of exercise, notwithstanding...

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Canadian Pacific Ltd. v. The Queen, 88 DTC 6265, [1988] 1 CTC 429 (FCA)

Mahoney J. suggested that it was contrary to the scheme of the Act for the taxpayer to receive $17.6 million as a tax-free grant toward the cost...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) 35

The Queen v. Thyssen Canada Ltd., 87 DTC 5038, [1987] 1 CTC 112, 87 DTC 5038 (FCA)

The denial (by virtue of s. 18(4)) of the deduction for interest paid by the taxpayer to a non-resident, where that interest was subject to...

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Bye v. Coren, [1985] BTC 7 (HC), aff'd [1986] BTC 330 (C.A.)

"There is ... no rule that the same sum cannot be subject to two separate taxes. Whether it is so subject is a matter of construction of the...

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Furniss v. Dawson, [1984] BTC 71 (HL)

An "element of double taxation exists whenever a shareholder sells at a profit his shares in a company which has itself realized a capital asset...

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The Queen v. Robichaud, 83 DTC 5265, [1983] CTC 195 (FCTD)

A husband and wife were unsuccessful in claiming each other as dependants.

Gillespie v. The Queen, 82 DTC 6334, [1982] CTC 378 (FCA)

The purpose of s. 63(4) (since repealed) was found to be preventing both a man and a woman from obtaining deductions from income for the same...

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Noranda Mines Ltd. v. The Queen, 82 DTC 6212, [1982] CTC 226 (FCTD), aff'd 85 DTC 5001, [1984] CTC 659 (FCA)

An argument that the phrase "taxable income earned in the year" should be interpreted as referring to taxable income before the deduction of any...

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IRC v. Garvin, [1981] 1 WLR 793 (HL)

It was stated, obiter, that "I can see a powerful argument being mounted to the effect that, if a receipt falls to be treated as income and taxed...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Estoppel 48

R. v. Malloney’s Studio Ltd., 79 DTC 5124, [1979] CTC 206, [1979] 2 S.C.R. 326

"Mutuality of tax treatment of parties to the same transaction, or even the avoidance of double taxation have never been principles with which...

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Quebec North Shore Paper Co. v. The Queen, 78 DTC 6426, [1978] CTC 628 (FCTD)

The court found that the Crown's method of computing the taxpayer's income during a year in which it changed its method of adjusting for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 10 - Subsection 10(2) 121

Perrault v. The Queen, 78 DTC 6272, [1978] CTC 395 (FCA)

The treatment of a single payment under different provisions of the Act as income in the hands of two taxpayers may result from an unfortunate...

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Denison Mines Ltd. v. Minister of National Revenue, 74 DTC 6525, [1974] CTC 737, [1976] 1 S.C.R. 245

Costs of removing ore were deductible in computing the taxpayer's profit. Since "no single disbursement can be reflected twice in the accounts",...

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F.S. Securities, Ltd. v. C.I.R. (1964), 41 TC 688 (HL)

"[D]ouble taxation in itself is not something which is beyond the power of the Legislature to provide for when constructing its tax scheme ......

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Minister of National Revenue v. Trans-Canada Investment Corporation Ltd., 55 DTC 1191, [1955] CTC 275, [1956] S.C.R. 49

In his dissenting reasons, Rand J., in finding that the intercorporate dividend deduction in s. 27(1) of the 1948 Act was not available to the...

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See Also

101139810 Saskatchewan Ltd. v. The Queen, 2017 TCC 3

An individual (Case) held his 1/3 shareholding in a small business corporation through a personal holding company (8231) which also held 1/3 of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) s. 55(2) assessment of corporate tax on bad butterfly confirmed notwithstanding same accrued gain reported at individual shareholder level 489
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) 55(5)(f) designation may be made after assessment under s. 55(2) 278

Létourneau v. The Queen, 2010 DTC 1098 [at 3020], 2009 TCC 614 (Informal Procedure)

By operation of 96(1.1)(b), which applies notwithstanding any other provision of the Act, "allowances" received by a retired partner from his...

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Beament et al. v. Minister of National Revenue, 70 DTC 6130, [1970] CTC 193, [1970] S.C.R. 680

In finding, in his concurring reasons for judgment, that the contractual right of beneficiaries of an estate to enforce an agreement for the...

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Consoltex Inc. v. The Queen, 97 DTC 724 (TCC)

Bowman TCJ. found that because the cost of expenditure by the taxpayer on yarn qualified as SR&ED for purposes of s. 37 of the Act, those costs...

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Pezzelato v. The Queen, 96 DTC 1285 (TCC)

In obiter dicta, Bowman TCJ. accepted a submission that if the taxpayer were taxable under s. 80.4(1)in its 1988 taxation year in respect of...

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Attis v. MNR, 92 DTC 1128 (TCC)

The exclusion in s. 15(2) for payments made as part of a series of loans or other transactions and repayments does not apply where there is a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2.6) 76

Pat Marcantonio v. Minister of National Revenue, 91 DTC 917, [1991] 1 CTC 2702 (TCC)

After finding that the Minister had properly reassessed the taxpayer to increase his income pursuant to s. 69(1)(a) by the amount of charges made...

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Administrative Policy

10 October 2014 APFF Roundtable Q. 21, 2014-0538091C6 F - 2014 APFF Roundtable, Q. 21 - Impact of the Descarries Case

CRA indicated respecting any potential double taxation arising from the applicability of both s. 84(2) and (3) to a surplus stripping transaction...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) Descarries failed to recognize scheme against indirect surplus stripping 716
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) Descarries failed to recognize breadth of s. 84(2) 548

30 October 2014 External T.I. 2013-0488881E5 - Upstream Loan

As a result of a wind-up of a 2nd tier FA following a s. 90(6) loan to Canco, there technically would be a double income inclusion to Canco...

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31 August 2011 External T.I. 2011-0415891E5 F - Increase in stated capital, stock dividends -55(2)

CRA will construe paragraph 55(2)(c) so that the amount deemed not to be a dividend is not taxed as a capital gain twice. Paragraph 55(2)(c) will...

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2003 Ruling 2003-002803

A lease is amended to add an option to purchase and to increase the annual lease payment by an amount that would be in excess of the fair market...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 49 - Subsection 49(3) 159

29 April 2003 External T.I. 2003-00646

Allocations made to the spouse of a retired partner pursuant to s. 96(1.1) would, depending on the circumstances, also be included in the income...

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26 February 2003 External T.I. 2003-000879

Contrary to a previous position, CCRA has concluded that s. 248(28) does not preclude the application of s. 84(3) on the redemption of shares even...

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11 April 2001 External T.I. 1999-000700

The following example was provided respecting a preferred share held by a financial institution whose paid-up capital (and apparently, redemption...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 142.5 - Subsection 142.5(1) 57

2000 December TEI Roundtable Q. 24, 2000-005649

A Canadian resident corporation lends money to a foreign affiliate which, in turn, lends money to non-affiliated and non-resident corporations. In...

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10 August 2000 External T.I. 2000-001687

"Where an employee has income from employment under paragraph 7(1)(a) related to the disposition, by virtue of subsection 7(1.1), of shares and a...

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12 November 1992 Memorandum (Tax Window, No. 27, p. 7, ¶2330)

S.4(4) cannot be invoked to open up a year for reassessments that is statute-barred where an expense that relates to that year was claimed by a...

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11 June 1991 T.I. (Tax Window, No. 4, p. 8, ¶1297)

Under the proposed version of s. 4(4), interest to which s. 18(4) applied in a previous year will not be required to be included in income under...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 80 - Subsection 80(4) 19

11 September 89 T.I. (February 1990 Access Letter, ¶1109)

There is no provision in the Act permitting a shareholder/manager to reduce the amount of salary received by him to the extent that such salary is...

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86 C.R. - Q.39

In the absence of abuse, RC will not tax the same amount twice.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 67 42

85 C.R. - Q.6

"Normally it is the Department's practice not to assess the same income twice."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 17

84 C.R. - Q.46

A deemed dividend arising on the redemption of shares that are inventory will be excluded from the shareholder's s. 9 gain.

81 C.R. - Q.3

On the conversion of debt of an insolvent corporation into share capital, RC will not apply both ss.69(1)(a) and 80.

IT-369R "Attribution of Trust Income to Settlor"

An amount which has been attributed to a person under s. 75(2) normally will be excluded from the income of the beneficiaries and the trust.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) 108

IT-462 "Payments Based on Production or Use"

In situations where ss.12(1)(a) or (b) can be applied in addition to paragraph 12(1)(g), RC will normally apply only the former provisions to...

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Subsection 248(32) - Amount of advantage

Cases

Canada v. Castro, 2015 DTC 5113 [at 6266], 2015 FCA 225, rev'g sub nom. David v. The Queen, 2014 DTC 1111 [at 3236], 2014 TCC 117

A group of individuals made cash contributions to a registered charity on the basis that the charity would issue charitable receipts to them for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts inflated charitable receipt not a "benefit" vitiating a gift (donative intent issue not properly raised) 175
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(2) inflated charitable receipt was invalid 193
Tax Topics - Income Tax Regulations - Regulation 3501 inflated charitable receipt was invalid 193
Tax Topics - Statutory Interpretation - Interpretation Act - Section 16 Regs read in context of enabling legislation 82
Tax Topics - Statutory Interpretation - Interpretation Act - Section 32 inflated charitable receipt not an "advantage" 124

Administrative Policy

Income Tax Technical News No. 26, 24 December 2002

Fund Raising Events or Activities

The guidelines below have general application to all fund raising events or activities:

  • The attendance of...

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Subsection 248(35) - Deemed fair market value

See Also

Mariano v. The Queen, 2015 DTC 1209 [at 1331], 2015 TCC 244

The taxpayers were participants in leveraged donation transactions, which were intended to result in a step-up of the adjusted cost base of...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Other courseware licences valued at modest initial cost, given relevant wholesale market and depressive effect of huge volumes purchased 303
Tax Topics - General Concepts - Ownership no acquisition of unascertained property 76
Tax Topics - General Concepts - Sham taxpayer involvement in deceit unnecessary 375
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) void for lack of certainty of objects 224
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) delegation of power of appointment to promoter not authorized 238
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts no gift where no intent for impoverishment and where gifted property not yet identified 566

Administrative Policy

10 October 2014 APFF Roundtable Q. 10, 2014-0538641C6 F - 2014 APFF Roundtable, Q. 10 - Application of 248(35), (36) and (37)(g).

(a)…The provisions of subsection 248(36) do not apply to gifts acquired by reason of the death of an individual. Since…the property that is...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(36) bequest on FMV basis 100

16 October 2012 External T.I. 2012-0454451E5 - Donation of flow-through shares

A query was received respecting the donation of flow-through shares of a private company which were issued as part of a gifting arrangment which...

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Subsection 248(36) - Non-arm’s length transaction

Administrative Policy

10 October 2014 APFF Roundtable Q. 10, 2014-0538641C6 F - 2014 APFF Roundtable, Q. 10 - Application of 248(35), (36) and (37)(g).

…(b)… Gifts of property acquired in the circumstances contemplated in subsection 70(5) are not included in the list provided in paragraph...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(35) s. 248(35) does not apply where gifted property previously was bequested on s. 70(6) rollover basis 65