From question 6 of the 2015 APFF Roundtable, it appears that the positive capital dividend account balance created by Subco’s realization of a capital gain could be paid to Parentco and then to Parentco’s shareholders as a capital dividend even…
Castro
Craig Burley has written an interesting post on R v Castro, 2015 FCA 225. My summary of Craig’s summary: ouch!
Share attributes
In Neil Armstrong’s summary of a butterfly ruling (2014-0533601R3), he wrote: The reorganization started off in the usual manner with a s. 86 reorg under which the DC shareholders exchanged their old common and preferred shares for special “butterfly” shares…
Bike stands
Neil Armstrong notes the following CRA positions on employee benefits from the 2015 APFF Conference: Providing a bike stand area for employees does not confer a benefit if the employees’ usage of it is “difficult to quantify and measure”. Providing…
55(2) as a tax reduction tool
The CRA accepts that the GAAR will not apply where a taxpayer deliberately triggers 55(2) to reduce tax. Rather than having Opco pay a dividend to Mr A, Mr A could roll his shares of Opco to Holdco and have…
NPO T1044 filing requirements
Under s 149(12) of the Income Tax Act (Canada), certain not-for-profits (“NPOs”, ie entities exempt from tax under s 149(1)(l)) must file a T1044 information return. An NPO must file the T1044 if (a) the total of all amounts each…
Collections scam
I have heard recently about a number of taxpayers who received voicemail messages purporting to be from the CRA. The caller left a message threatening the seizure of assets or the immediate imposition of criminal or severe civil sanctions if…
Section 51 loss on conversion
Summary of Technical interpretation 2014-0524651I7 E (May 6, 2014).
Spousal trust cannot be a GRE
The CRA, in technical interpretation 2014-0553181E5F (June 25, 2015), says that a spousal trust cannot be a “graduated rate estate” for the purposes of the Act.
Interest on debt to acquire land; bad debts
Per Lyons J in Kokai-Kuun Estate v R, 2015 TCC 217: a taxpayer cannot add to the cost of vacant land interest and property taxes paid in respect of the land where it was acquired for “investment” purposes but never…