Subsection 81(1) - Amounts not included in income
Paragraph 81(1)(a) - Statutory exemptions
Cases
The Queen v. AEL Microtel Ltd., 86 DTC 6348, [1986] 2 CTC 108 (FCA)
The intention of Parliament to exempt the amount of a development incentive from income tax is not frustrated by taking the amount into account...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | 82 |
Administrative Policy
26 August 2015 External T.I. 2015-0564171E5 F - Paiements d'un RPAC à un Indien
Respecting a question on the possibility of reducing income tax source deductions where payment is made to a member of a pooled registered pension...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) | procedure for reduced withholding on pension distributions to status Indian | 193 |
9 January 2001 External T.I. 2000-005344
Where a non-resident corporation derives income or a capital gain which is exempted from tax under Part I by a treaty, s. 81(1)(a) provides that...
Paragraph 81(1)(c) - Ship or aircraft of non-residents
Cases
Furness Withy & Co. Ltd. v. MNR, 66 DTC 5358 (Ex Ct), aff'd 68 DTC 5033, [1968] CTC 35, [1968] S.C.R. 221
The taxpayer, which was a resident of the U.K. and carried on an international shipping business both directly and through subsidiaries, provided...
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|---|---|---|
| Tax Topics - General Concepts - Evidence | 202 | |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | deduction of head office expenses | 131 |
Administrative Policy
24 December 2015 Internal T.I. 2014-0560831I7 - International shipping
The Taxpayer is a non-resident corporation that carries on business in many countries, including Canada. The activities of the non-resident...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Shipping | lease includes time charter | 67 |
16 June 2014 External T.I. 2013-0515431E5 - International traffic and airline enterprise
During peak season, Canco, which transports passengers to destinations inside and outside Canada, is supplied planes, and non-resident pilots and...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | application of Sutcliffe/Price allocation approach were s. 115(3) not applicable | 150 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(4) | non-resident's provision of crew and aircraft to Canadian airline | 150 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Traffic | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) | Reg. 102 withholding or waiver notwithstanding Treaty exemption | 166 |
| Tax Topics - Treaties - Article 15 | U.K company's provision of crew to Canadian airline/Reg. 102 withholding or waiver notwithstanding Treaty exemption | 291 |
4 June 1996 T.I. 96 1114
General discussion.
4 May 1995 T.I. 951182 (C.T.O. "Shipping Income - Residents of Greece")
"As it is our understanding that Greece continues to exempt residents of Canada from its Freight Tax on the basis of the bilateral arrangement...
June 1992 Hong Kong Seminar (May 1993 Access Letter, p. 227)
"Income from the operation of a ship" does not include a capital gain from a disposition of the ship, nor will the capital gain be included in...
92 C.M.TC - Q.6
"Income from the operation of a ship" does not include a capital gain from the disposition of the ship.
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (b) | internationl ship | 18 |
2 July 1991 T.I. (Tax Window, No. 5, p. 15, ¶1326)
The foreign country will be considered to grant substantially similar relief if it does not impose an income tax, or if the income from the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 4 | |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(1) | 51 |
Articles
Michael Shields, "Taxation of International Shipping Companies in Canada", International Tax (Wolters Kluwer CCH), No. 88, June 2016, p. 1
General non-imposition is substantially similar relief (p.2)
The country in which the foreign company is resident must provide "substantially...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Shipping | 82 | |
| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 305 |
Owen, "Tax Issues in International Shipping", 1993 Canadian Tax Journal, Vol. 41, No. 4, p. 724.
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| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 0 |
Lang, "Taxation of International Aviation: A Canadian Perspective", 1992 Canadian Tax Journal, No. 4, p. 881.
Paragraph 81(1)(d) - Service pension, allowance or compensation
Administrative Policy
5 July 2013 Ministerial Correspondence 2013-0489561M4 - Taxation of the Veterans Independence Program
Under a recent change in the Veterans Independence Program, recipients would get lump sums to pay vendor invoices rather than sending the invoices...
Paragraph 81(1)(e) - War pensions
Administrative Policy
10 July 2014 External T.I. 2014-0529791E5 - Pension income arising in Hong Kong
Respecting the treatment of a Hong Kong War Memorial Pension received by a resident of Canada, CRA stated: we would consider a pension received...
Paragraph 81(1)(g.1) - Income from personal injury award property
Administrative Policy
28 January 1992 Memorandum (Tax Window, No. 16, p. 17, ¶1723)
A lump-sum payment received by an individual through a consent to judgment of the Supreme Court of Canada as a result of his claim for...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) | 52 |
Paragraph 81(1)(h) - Social assistance
See Also
Norton v. The Queen, 2009 DTC 1102 [at 558], 2008 TCC 91, aff'd 2010 DTC 5090 [at 6898], 2010 FCA 138
The taxpayer resides at and operated two special care homes. Subsidies which she received from the Province of New Brunswick to cover part of the...
Administrative Policy
19 March 1992 Memorandum (Tax Window, No. 18, p. 17, ¶1821)
Amounts paid to a care giver to cover the room and board of a handicapped person are not included in his employment income.
See also ¶1850.
Paragraph 81(1)(e.2)
Administrative Policy
S4-F3-C1 - Price Adjustment Clauses
CRA will consider a price adjustment clause to represent pricing at fair market value if:
- the agreement reflects a bona fide intention of the...
Subsection 81(2) - M.L.A.‘s expense allowance
Administrative Policy
83 C.P.T.J. - Q.24
Any allowances received by a member of a legislative assembly (or by an municipal officer) that reimburse her for expenses considered to be...
6 August 1992 T.I. 921792 (April 1993 Access Letter, p. 143, ¶C76-065)
A per diem allowance of $100 would not qualify for exemption.
Subsection 81(3) - Municipal officers’ expense allowance
Cases
Bellrose v. Canada, 2012 DTC 5068 [at 6922], 2012 FCA 67
The Court found that the Métis Nation of Alberta Association ("MNAA") was not an incorporated municipality. Although MNAA was incorporated under...
Administrative Policy
26 June 1995 T.I. 950321 (C.T.O. "Municipal Officer's Expense Allowance")
Taxable benefits such as the automobile standby charge are not considered to be amounts "paid" as salary or other remuneration as required by the...
Subsection 81(3.1)
Administrative Policy
S2-F3-C2 - Benefits and Allowances Received from Employment
Part-time employment
2.50 Subsection 81(3.1) excludes from a part-time employee’s income reasonable allowances for, or reimbursements of, travel...