Canada Revenue Agency

Total 280 Posts

RESIDENCY OF A TRUST – A QUESTION OF MANAGEMENT AND CONTROL II: A View from the CRA Bridge!

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Last fall I wrote about the Supreme Court of Newfoundland and Labrador being asked to rule on the specific issue of residency which would have significant tax implications to the trust depending on the Court’s determination. In Discovery Trust vs Canada (National Revenue), 201201G6615, at issue was whether a trust was a resident of Newfoundland and Labrador where the beneficiaries resided or in Alberta where the trustee was a resident…..

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Canada Revenue Agency, Estate Administration, Estate Administration and Probate Applications, Estate Litigation, Estate Planning, Executors, In the News, Liability, Property, Tax Issues, Trustee, Trustee Disputes, Trusts, Wills

CRA Commentary on 74.4(2) Planning and Dividend Payments

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The CRA recently published a severed letter in which it considered the applicability of subsection 74.4(2) to two scenarios involving the payment of dividends from a small business corporation to a holding company, for the benefit of “designated persons”. Generally, subsection 74.4(2) applies to a transfer or loan of property made, directly or indirectly, by an individual to a corporation that is not a small business corporation, if it is reasonable to consider that one of the main purposes of the transfer is to reduce the individual’s income and benefit, directly or indirectly, someone who qualifies as a “designated person” in respect of the individual (e.g. a minor child or spouse). ….

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Canada Revenue Agency, Estate Planning, Tax Issues

Welcome Expansion on Charities Investing in Limited Partnerships

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Registered charities have always been subject to limitations on what activities they can carry on, as well as a fair amount of compliance in terms of reporting obligations. One area where a charity is subject to limitations is with respect to its ability to carry on a business.  Certain registered charities, namely private foundations, are prohibited from carrying on any business, while others, namely public foundations and charitable organizations, are….

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Canada Revenue Agency, Charitable Giving

STATUTE-BAR ASSESSMENTS AND RELIANCE ON OTHERS

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Pursuant to the provisions of the Income Tax Act, the Canada Revenue Agency (“CRA”) has a three-year time frame within to reassess a taxation year, commencing with the date of the original Notice of Assessment. Beyond the three-year limit, returns are referred to as statute-barred. Nevertheless, the CRA can always reassess if it can prove fraud or misrepresentation in the return filed, regardless of whether the return is considered statute….

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Canada Revenue Agency, Estate Administration, Estate Planning, In the News, Investments, Property, Tax Issues, Trusts

CONFIRMATION OF CAPITAL DIVIDEND ACCOUNT ADDITION WHERE CAPITAL GAINS INCLUSION RATE FOR A CHARITABLE GIFT IS ZERO… AND A LIGHTER NOTE

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The Canada Revenue Agency was recently asked to confirm whether, for a gift of ecologically sensitive land, the full amount of the capital gain realized by the corporation would be added to the corporation’s capital dividend account. ….

CONFIRMATION OF CAPITAL DIVIDEND ACCOUNT ADDITION WHERE CAPITAL GAINS INCLUSION RATE FOR A CHARITABLE GIFT IS ZERO… AND A LIGHTER NOTE Continue Reading »

Canada Revenue Agency, Estate Planning
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