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Manu Kakkar, "Section 56.4 Restricted Covenant Trap", Tax for the Owner-Manager, Volume 13, Number 4, October 2013, p. 4:
3 August 1999 External T.I. 9909975 - Tax Interpretations
As regards subsection 56(4), in general terms, this provision applies where a taxpayer transfers or assigns a right to an amount to a person with whom the taxpayer does not deal at arm’s length. If persons are not related to each other, it becomes a question of fact whether such persons deal with each other at arm’s length.
20 July 2009 External T.I. 2009-0317041E5 - Tax Interpretations
Subsection 56(4.1) of the Act is intended to prevent taxpayers from avoiding tax through loans to non-arm's length individuals. Under this subsection, income from property that is diverted by a taxpayer to a non-arm's length individual through a low interest or an interest-free loan where income-splitting is one of the main reasons for the loan ...
16 June 2014 STEP Roundtable, 2014-0522961C6 - STEP CRA …
16 June 2014 STEP Roundtable, 2014-0522961C6 - STEP CRA Roundtable - June 2014
CRA considers a NAL transfer of lands, but with rights to rents …
CRA went on to find that s. 56(4) would apply to include the rents in the income of the corporation - and then quoted its statement in IT-440R, para. 10 that: where the transfer or assignment of the right to an amount that is income does not constitute a deliberate attempt to evade or avoid tax, the amount will be included only in the income of ...
10 July 2013 Internal T.I. 2013-0475501I7 F - Tax Interpretations
Par conséquent, le paragraphe 56(4) ne s'applique pas. Si vous désirez des renseignements supplémentaires concernant le contenu du présent document, n'hésitez pas à communiquer avec nous. Par ailleurs, il nous fera plaisir de revoir cette demande une fois que vos projets de cotisation seront présentés et les commentaires des ...
11 March 2014 Internal T.I. 2013-0513221I7 F - Stock options
Le paragraphe 56(4) s'appliquerait donc dans la mesure où il serait possible de démontrer que Société a transféré ou cédé (« assigned » en anglais) à une personne avec laquelle elle a un lien de dépendance (Madame X) son droit à une somme qui serait, en l'absence du transfert ou de la cession, incluse dans le calcul de son revenu.
28 October 2016 External T.I. 2016-0654331E5 F - Tax Interpretations
Vous désirez savoir notre opinion quant à l’application des paragraphes 9(1), 15(1), 56(2) et 56(4) et de l’alinéa 18(1)a) dans la situation donnée pour A et pour Société A. Vous désirez également savoir si la conclusion serait différente s’il s’agissait plutôt d’une convention en bonne et due forme de redevances sur une ...
We have translated 6 more CRA Interpretations
Income Tax Act - Section 56 - Subsection 56(4) s. 56(4) generally will apply where royalty is transferred without assignment of copyright, with exception of SOCAN royalty: Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) not applicable where copyright or royalty interests transferred at FMV: Income Tax Act - Section 85 - Subsection 85(1.1)
Income Tax Severed Letters - 2022-12-14 | Tax Interpretations
2022年12月14日 · Principal Issues: Whether COVID-19 tests for travellers entering Canada satisfy the condition in paragraph 118.2(2)(o) of being prescribed by a medical practitioner, when the tests are mandated by an Order in Council (OIC) that is made pursuant to the Quarantine Act.