Income Tax Severed Letters - 2026-06-03

Ruling

2025 Ruling 2025-1082611R3 F - Post-mortem planning - Pipeline

Unedited CRA Tags
84.1, 84(2), 245(2)

Principal Issues: Hybrid Pipeline.

Position: Favourable rulings provided.

Reasons: Wording of the Act and previous positions.

2025 Ruling 2025-1054471R3 - Qualifying exchange

Unedited CRA Tags
131(8), 122.1(1), 132(6), 132(6.1), 132.2, 15(1), 56(2), 56(4), 69(1), 69(4), 105(1), 246(1), 245(2).

Principal Issues: 1) Whether the proposed transactions involving the transfer of property from MFC to New Sub MFT would constitute a qualifying exchange as defined in subsection 132.2(1); 2) Whether the proposed transactions involving the transfer of property from New Sub MFT to MFT would constitute a qualifying exchange as defined in subsection 132.2(1); 3) Whether GAAR would apply to the proposed transactions.

Position: 1) Yes; 2) Yes; 3) No.

Reasons: 1) Meets the requirements. 2) Meets the requirements. 3) There is no abuse or misuse.

2024 Ruling 2022-0957421R3 - Post-Mortem Pipeline

Unedited CRA Tags
84(2), 84.1(1), 245(2)

Principal Issues: 1) Whether subsection 84.1(1) applies to the proposed transactions. 2) Whether subsection 84(2) applies to the proposed transactions. 3) Whether subsection 245(2) applies to the proposed transactions.

Position: 1) No. Favourable ruling given. 2) No. Favourable ruling given. 3) No. Favourable ruling given.

Reasons: Based on the provisions of the Act, jurisprudence and CRA publications.

Technical Interpretation - External

25 March 2026 External T.I. 2023-0967531E5 - FTC on Social Security Contributions

Unedited CRA Tags
ss126(1)

Principal Issues: Are mandatory Social Security Contributions made to the government of Greece in a given year eligible for a foreign tax credit, pursuant to subsection 126(1) or subsection 126(2) of the Act ?

Position: Yes, provided the conditions in ITTN No. 31R2 are satisfied.

Reasons: Prior administrative position.

29 January 2026 External T.I. 2025-1083821E5 - Pillar Two - CPA Canada Q. 15

Unedited CRA Tags
Subsections 14(1), 14(3) and 15(1) of the GMTA; Articles 2.1 and 2.3 of the Model Rules.

Principal Issues: Whether subsections 14(1), 14(3) and 15(1) of the Global Minimum Tax Act ("GMTA") align with the Tax Challenges Arising from the Digitalisation of the Economy - Global Anti-Base Erosion Model Rules (Pillar Two) (the "Model Rules"), given that subsection 14(1) of the GMTA simply provides that a person must pay top-up tax in an amount determined under subsection 15(1) of the GMTA if, among other conditions, the person is a "relevant parent entity," and that such term is defined in subsection 14(3) of the GMTA without expressly establishing any priority for a POPE to levy top-up tax.

Position: Yes, although the legislative structure differs, the combination of subsections 14(1), 14(3) and 15(1) of the GMTA produces the same "priority" for POPEs as per the application of the Income Inclusion Rule ("IIR") in Article 2.1 of the Model Rules and the IIR offset mechanism in Article 2.3 of the Model Rules.

Reasons: The GMTA and the Model Rules.

Technical Interpretation - Internal

5 January 2026 Internal T.I. 2025-1082101I7 F - Application of paragraph 45(2)(c)

Unedited CRA Tags
45(2)(c);220(3.2); 220(3.3) of the Income Tax Act

Principal Issues: Whether a taxpayer can apply to the Minister under subsection 220(3.2) to extend the time for rescinding an election made pursuant to subsection 45(2)?

Position: No.

Reasons: Wording of the Act. The rescission of a subsection 45(2) election under paragraph 45(2)(c) is not the same as revoking the election under subsection 220(3.2). The rescission of a subsection 45(2) election is not itself an election for the purposes of subsection 220(3.2).