Income Tax Severed Letters - 2023-08-30

Ruling

2022 Ruling 2022-0947921R3 - Post-mortem tax planning

Unedited CRA Tags
40(3.61), 84(2), 84.1, 112(3.2), 164(6), 245

Principal Issues: 1) Whether paragraph 84.1(1)(b) applies to the proposed post-mortem pipeline transactions; 2) Whether subsection 84(2) applies to the proposed post-mortem pipeline transactions.

Position: 1) No; 2) No.

Reasons: 1) Non-share consideration does not exceed the adjusted cost base of the transferred shares; 2) In accordance with the Act and consistent with CRA's published positions.

Technical Interpretation - External

31 May 2023 External T.I. 2022-0944411E5 - Convertible Notes

Unedited CRA Tags
212(3) def "participating debt interest"

Principal Issues: Whether the ITRD could provide comments concerning the application of the definition of "participating debt interest" in subsection 212(3) to a Model Convertible Promissory Note?

Position: No.

Reasons: The ITRD does not provide confirmation concerning the tax consequences of convertible debts based on model contracts in the context of technical interpretations.

26 May 2023 External T.I. 2022-0946411E5 - Classification of an Intermunicipal Management Board

Unedited CRA Tags
XXXXXXXXXX ITA
Summary Under
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(26) - Paragraph 1100(26)(b)
an intermunicipal management board is a corporation/ no finding on principal business
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1)
an intermunicipal management board is a corporation given similarity of governing provisions to CBCA

Principal Issues: Whether an intermunicipal management board should be treated as a corporation for the purposes of the Act.

Position: Yes.

Reasons: According to the law.