Wise v R, 2019 TCC 196, … a shareholder successfully argued that tenant improvements made by a related corporation did not confer an immediate benefit for the purposes of subsection 15(1) due to the provisions of the specific legal…
Planning like it’s the 1990s again
The CRA has reversed a long-standing (and questionable) position on whether a deemed dividend arising under paragraph 84.1(1)(b) of the Income Tax Act (Canada) gives rise to a dividend refund in the purchaser corporation. The CRA apparently now accepts that…
Inter-corporate dividends again
In A.G. Stedman “Intercorporate Dividend Planning: More Complexity” 20:1 Tax for the Owner-Manager (January 2020), the author outlines factors to consider when a private corporation proposes to pay a dividend to another private corporation as follows: When a subsidiary corporation…
IPP surplus payment and Part XIII tax
In technical interpretation 2017-0732681E5 (September 12, 2019), the CRA took the position that the distribution of an actuarial surplus from an individual pension plan to a US-resident taxpayer would not qualify for US treaty relief. The CRA stated that the…
Accountant’s due diligence report
Steve Suarez, “FCA To Hear Atlas Tube Appeal” 27:12 Canadian Tax Highlights (December 2019), discusses Canada (National Revenue) v. Atlas Tube Canada ULC, 2018 FC 1086. The Federal Court held that an accounting firm’s due diligence report on the tax…
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Family law tax pitfalls
Alison Boyce tweeted today about an interesting article published recently in The National magazine. The article describes CBA efforts to convince the Department of Finance that it needs to re-visit the tax rules affecting shared parenting.
TOSI and foreign affiliates
The TOSI rules don’t just apply to dividends from Canadian private corporations. The rules can apply to dividends from foreign private corporations as well, and the tax results are potentially horrendous. Stan Shadrin, Manu Kakkar and Alex Ghani, “FAPI and…
TOSI and business reorganizations
In a technical interpretation (TI 2019-0814181E5, August 19, 2019), the CRA confirmed that the five-year test to qualify for the “excluded business” exception under the TOSI (tax on split income) rules should take into account all taxation years in which…
Estates and foreign affiliate dumping
The draft foreign affiliate dumping rules can create a deemed dividend to a non-resident discretionary beneficiary of the estate of an owner of a private Canco that holds shares in a foreign affiliate. Henry Shaw, “Foreign Affiliate Dumping and Estates…