| 17 June 2025 STEP Roundtable Q. 1, 2025-1051571C6 - Succession of Family Business |
Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(b) - Subparagraph 84.1(2.31)(b)(ii) |
the children receiving an intergenerational transfer may control the purchaser corporation indirectly or as trustees of a trust |
| 17 June 2025 STEP Roundtable Q. 2, 2025-1051581C6 - Succession of Family Business |
General Concepts - Ownership |
trustee are not owners of shares in the corpus |
| Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(d) |
trustees are not considered to be owners of the shares held by the trust |
| Income Tax Act - Section 84.1 - Subsection 84.1(2.3) - Paragraph 84.1(2.3)(c) - Subparagraph 84.1(2.3)(c)(ii) |
person does not have an interest in a trust if it is contingent on the death of a person |
| 17 June 2025 STEP Roundtable Q. 3, 2025-1055881C6 - BARE TRUSTS THAT CEASED TO EXIST IN 2024 |
Income Tax Act - Section 150 - Subsection 150(1.2) |
how a bare trust that was not required to file in its terminal year can communicate its “closed” status |
| 17 June 2025 STEP Roundtable Q. 4, 2025-1055891C6 - Preferred Beneficiary Election |
Income Tax Act - Section 104 - Subsection 104(14) |
being the beneficiary of a QDT trust would not preclude an individual from making a preferred beneficiary election with a “regular” trust |
| 17 June 2025 STEP Roundtable Q. 5, 2025-1061551C6 - RDSP Financial Hardship Withdrawals |
Income Tax Act - Section 146.4 - Subsection 146.4(4) - Paragraph 146.4(4)(j) |
guidelines applied in considering financial-hardship requests for excess withdrawals from a PGAP RDSP |
| 17 June 2025 STEP Roundtable Q. 6, 2025-1058571C6 - Section 116 Partial Distributions from an Estate Covering Multiple Taxation Years |
Income Tax Act - Section 116 - Subsection 116(2) |
CRA indicates that a s. 116 certificate can cover multiple estate distributions to a non-resident beneficiary |
| 17 June 2025 STEP Roundtable Q. 7, 2025-1054921C6 - Subsection 70(6) and Testamentary Spousal Trust |
Income Tax Act - Section 70 - Subsection 70(6) |
indefeasible vesting requires inter alia ascertainment but not conveyance |
| 17 June 2025 STEP Roundtable Q. 8, 2025-1054941C6 - Subsection 70(6) and Vested Indefeasibly |
Income Tax Act - Section 70 - Subsection 70(6) |
a deceased’s property can vest indefeasibly in the surviving spouse notwithstanding that spouse’s death before probate |
| 17 June 2025 STEP Roundtable Q. 9, 2025-1051591C6 - Flipped Property and Section 85 |
Income Tax Act - Section 12 - Subsection 12(12) |
s. 12(12) rules do not apply to residential capital property transferred on a full (but not partial) s. 85(1) rollover basis |
| 17 June 2025 STEP Roundtable Q. 10, 2025-1054541C6 - Principal Residence Exemption and Subsection 73(1) Transfer to a Life Interest Trust |
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) - Subparagraph 40(2)(b)(ii) |
a principal residence designation must be made on the transfer of a principal residence to a life interest trust in order for the property to qualify as such in the trust’s hands |
| 17 June 2025 STEP Roundtable Q. 11, 2025-1051551C6 - Acquisition of Control of a Corporation |
Statutory Interpretation - Interpretation Act - Subsection 33(2) |
reference in s. 256(7)(a)(i)(A) to a person included persons |
| Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) - Subparagraph 256(7)(a)(i) - Clause 256(7)(a)(i)(A) |
a trust’s distribution of a corporation to an individual beneficiary would trigger a loss restriction event unless all 3 trustees were related to such beneficiary |
| 17 June 2025 STEP Roundtable Q. 12, 2025-1051561C6 - CRA Update on Subsection 55(2) and Safe Income – Where Are We Now? |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
a disproportionate allocation of DSI on a purchase spin-off can avoid the application of s. 55(2) |
| 17 June 2025 STEP Roundtable Q. 13, 2025-1067401C6 - Trust Holdbacks and Section 159 Clearance Certificate Requests |
Income Tax Act - Section 150 - Subsection 150(1.3) |
s. 159 holdback by distributing trust could give rise to a bare trust |
| 17 June 2025 STEP Roundtable Q. 14, 2025-1058551C6 - Late Section 116 Submission |
Income Tax Act - Section 116 - Subsection 116(3) |
CRA will process a late-filed notification under s. 116(3) as long as it is complete and received on or before the due date of the non-resident vendor's Part I income tax return |
| 17 June 2025 STEP Roundtable Q. 15, 2025-1058581C6 - Section 116 Compliance |
Income Tax Act - Section 116 - Subsection 116(5.1) |
s. 116 certificate will be based on ACB of property rolled out to NR beneficiary under s. 107(2), even where s. 116(5.1) applied based on higher FMV |
| Income Tax Act - Section 116 - Subsection 116(5) |
where real estate is rolled out to a non-resident beneficiary under s. 107(2), the s. 116 certificate will be based on the property’s ACB |
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