• Skip to main navigation
  • Skip to main content
  • Skip to footer
Loukidelis PC

Loukidelis PC

Effective. Accessible. Responsive

  • Services
  • About
  • LPC Notes
  • Articles
  • Privacy Policy
  • Contact Us
  • Disclaimer
  • Skip to menu toggle button

Category: Capital gain exemption

Shares acquired by a trust are QSBCSs

Posted on: August 21, 2025 Last updated on: August 15, 2025 Written by: John Loukidelis
On January 1, 2023, a newly-formed personal trust purchased shares of Opco from Dad, who owned them throughout the preceding two years. The trust sold the shares on June 30, 2023, to an unrelated person. The CRA found that the…
Continue reading “Shares acquired by a trust are QSBCSs”…

Subsection 110.6(8) issues

Posted on: April 25, 2023 Last updated on: September 9, 2024 Written by: John Loukidelis
Subsection 110.6(8) denies the capital gain exemption for a gain on a share if insufficient dividends are paid on it and the share is not a “prescribed share”. An ordinary common share is a prescribed shares under Reg 6205(1). A…
Continue reading “Subsection 110.6(8) issues”…

Are persons related to themselves?

Posted on: October 27, 2021 Last updated on: October 27, 2021 Written by: John Loukidelis
When are persons related for the purposes of subparagraph 110.6(14)(c)(ii)? A person is not generally deemed to be related to himself except for certain purposes (paragraph 251(5)(c), subparagraph 55(5)(e)(ii), subsection 256(1.5) and determining whether corporations are associated). Compare this to…
Continue reading “Are persons related to themselves?”…

Crystallizing and estate planning

Posted on: April 29, 2016 Last updated on: April 29, 2016 Written by: John Loukidelis
Is it always a good idea to take full advantage of the capital gain exemption (CGE) by crystallizing? Assume Ms X crystallizes her Opco shares, but Opco morphs into an investment holding company by the time of her death. In…
Continue reading “Crystallizing and estate planning”…

Archives

Categories

Recent notes

Net worth assessment strategy

The taxpayer bears the onus of refuting a net worth assessment or a similar type of assessment. The author summarizes a number of approaches that have worked in the courts as follows: Adequate records can defeat blunt assessments (Mensah v…
Continue reading “Net worth assessment strategy”…

Amended guidance on third-party penalties

The CRA has amended IC01-1R2 (“Third-Party Penalties”) in light of Guindon v R, 2015 SCC 41, and Ploughman v R, 2017 TCC 64. It has confirmed that “culpable conduct” “is defined with reference to the types of conduct the courts…
Continue reading “Amended guidance on third-party penalties”…

Related siblings under section 55

At the 2025 APFF conference, the CRA stated that the sisters in the following scenario would be related as per subparagraph 55(5)(e)(i): Sister A and Sister B each owned 100 percent of the shares of their respective holding corporations, whose…
Continue reading “Related siblings under section 55”…

Subsection 55(2) can be good actually

If subsection 55(2) applies to a dividend, and the cash related to the dividend needs to be paid to an individual shareholder anyway, the shareholder will likely be better off compared to the situation obtained when the subsection does not…
Continue reading “Subsection 55(2) can be good actually”…

Loans by a partnership to a partner

The CRA has generally held that a loan from a partnership to a partner will reduce the ACB of the partner’s partnership interest because of the “all-encompassing” language in subparagraph 53(2)(c)(v) of the Income Tax Act (Canada). The CRA has…
Continue reading “Loans by a partnership to a partner”…

Recent Posts

Net worth assessment strategy

The taxpayer bears the onus of refuting a net worth assessment or a similar type of assessment. The author summarizes a number of approaches that have worked in the courts as follows: Adequate records can defeat blunt assessments (Mensah v…
Continue reading “Net worth assessment strategy”…

Amended guidance on third-party penalties

The CRA has amended IC01-1R2 (“Third-Party Penalties”) in light of Guindon v R, 2015 SCC 41, and Ploughman v R, 2017 TCC 64. It has confirmed that “culpable conduct” “is defined with reference to the types of conduct the courts…
Continue reading “Amended guidance on third-party penalties”…

Related siblings under section 55

At the 2025 APFF conference, the CRA stated that the sisters in the following scenario would be related as per subparagraph 55(5)(e)(i): Sister A and Sister B each owned 100 percent of the shares of their respective holding corporations, whose…
Continue reading “Related siblings under section 55”…

Subsection 55(2) can be good actually

If subsection 55(2) applies to a dividend, and the cash related to the dividend needs to be paid to an individual shareholder anyway, the shareholder will likely be better off compared to the situation obtained when the subsection does not…
Continue reading “Subsection 55(2) can be good actually”…

Loans by a partnership to a partner

The CRA has generally held that a loan from a partnership to a partner will reduce the ACB of the partner’s partnership interest because of the “all-encompassing” language in subparagraph 53(2)(c)(v) of the Income Tax Act (Canada). The CRA has…
Continue reading “Loans by a partnership to a partner”…

Archives

Categories

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

About this site

Click here for an important disclaimer about this site.

Archives

Categories

Recent Posts

Net worth assessment strategy

The taxpayer bears the onus of refuting a net worth assessment or a similar type of assessment. The author summarizes a number of approaches that have worked in the courts as follows: Adequate records can defeat blunt assessments (Mensah v…
Continue reading “Net worth assessment strategy”…

Amended guidance on third-party penalties

The CRA has amended IC01-1R2 (“Third-Party Penalties”) in light of Guindon v R, 2015 SCC 41, and Ploughman v R, 2017 TCC 64. It has confirmed that “culpable conduct” “is defined with reference to the types of conduct the courts…
Continue reading “Amended guidance on third-party penalties”…

Related siblings under section 55

At the 2025 APFF conference, the CRA stated that the sisters in the following scenario would be related as per subparagraph 55(5)(e)(i): Sister A and Sister B each owned 100 percent of the shares of their respective holding corporations, whose…
Continue reading “Related siblings under section 55”…

Subsection 55(2) can be good actually

If subsection 55(2) applies to a dividend, and the cash related to the dividend needs to be paid to an individual shareholder anyway, the shareholder will likely be better off compared to the situation obtained when the subsection does not…
Continue reading “Subsection 55(2) can be good actually”…

Loans by a partnership to a partner

The CRA has generally held that a loan from a partnership to a partner will reduce the ACB of the partner’s partnership interest because of the “all-encompassing” language in subparagraph 53(2)(c)(v) of the Income Tax Act (Canada). The CRA has…
Continue reading “Loans by a partnership to a partner”…

© Loukidelis Professional Corporation