Income Tax Severed Letters - 2019-12-23

Ruling

2019 Ruling 2018-0788031R3 - loss consolidation

Unedited CRA Tags
20(1)(c), 55(2), 245

Principal Issues: Whether the lossco would be entitled to apply existing non-capital losses against the interest income that would be generated as part of particular loans that would be made under the loss consolidation transactions and whether the accompanying interest expense would be deductible by the profitcos.

Position: Yes.

Reasons: The proposed transactions conform to our requirements for these types of loss consolidation rulings. The proposed transactions would be legally effective and commercially realistic.

Technical Interpretation - External

10 July 2019 External T.I. 2018-0787301E5 - RDSP - "qualifying person"-146.4(1)

Unedited CRA Tags
146.4(1)

Principal Issues: Whether a person appointed under a supported decision making agreement pursuant to provincial legislation by an adult with a disability who is not contractually competent to enter into a disability savings plan is a qualifying person as defined in subsection 146.4(1).

Position: Question of Fact.

Reasons: Whether an individual is legally authorized to act on behalf of the beneficiary of a disability savings plan is a matter of law to be determined based on the laws of the province or territory in which the beneficiary resides.