Income Tax Severed Letters - 2026-09-09

Ruling

2026 Ruling 2025-1084051R3 F - Post-mortem pipeline

Unedited CRA Tags
84(2), 84.1, 85, 108(1), 245(2)

Principal Issues: 1) Whether section 84.1 applies to deem the estate to have received a dividend on the disposition of shares to the new corporation or to reduce the PUC of the shares of the new corporation received as consideration for the disposition of the shares. 2) Whether subsection 84(2) will apply to the proposed transactions. 3) Whether subsection 245(2) will apply to the proposed transactions.

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

Reasons: In accordance with the provisions of the Act and our previous positions.

Technical Interpretation - External

12 June 2026 External T.I. 2026-1096091E5 - XXXXXXXXXX program

Unedited CRA Tags
56(1)(n), 56(1)(r), 56(1)(u), 110(1)(g), ITR 200(2)

Principal Issues: 1. What is the income tax treatment for the financial assistance received by recipients under the XXXXXXXXXX program 2. What are XXXXXXXXXX reporting obligations for the financial assistance under the XXXXXXXXXX program?

Position: 1. The financial assistance provided under the XXXXXXXXXX program would likely be included in the recipient's income under subparagraph 56(1)(r)(iii) of the Act. 2. Where the financial assistance provided under the XXXXXXXXXX program are included in the recipient's income pursuant to subparagraph 56(1)(r)(iii) of the Act, XXXXXXXXXX is required to report the value of the financial assistance on a T4A to the recipient.

Reasons: 1. Funding for XXXXXXXXXX program is governed by the LMDA which is the subject of an agreement between the XXXXXXXXXX government and the Canada EI Commission because of section 63 of that Act, and is similar to a program established under Part II of that Act. 2. Legislation.

1 May 2026 External T.I. 2026-1086241E5 - : Mandatory disclosure rules and contractual protection

Unedited CRA Tags
LEGISLATIVE REFERENCE: 237.3, 237.4(4), 237.4(12)
Summary Under
Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(1) - Reportable Transaction
entering into an employment contract indemnifying an employee against reportable-transaction penalties was not a reportable transaction
Summary Under
Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(1) - Contractual Protection
indemnification in an employment contract against reportable- or notificable-transaction penalties was not contractual protection

Principal Issues: Whether a hypothetical employment contract (or similar agreement) containing an indemnification clause protecting an employee from a penalty imposed under subsection 237.3(8) or 237.4(12) would meet the definition of "contractual protection" under subsection 237.3(1) and:
- make the execution of the employment agreement itself meet the definition of "reportable transaction" in subsection 237.3(1), or
- cause in the employee's tax-planning work to be considered to involve contractual protection such that it would meet the definition of a reportable transaction.

Position: No.

Reasons: The indemnification does not appear to be related to the tax result of a transaction (being either signing the employment agreement or receiving a Payment) or costs related to a dispute about that tax result, but rather to a cost of regulatory non-compliance. In the absence of an avoidance transaction or contractual protection, there can be no reportable transaction simply as a result of an employment agreement that contains the presented indemnification clause.

18 March 2026 External T.I. 2023-0998201E5 - Mineral Resource Certification

Unedited CRA Tags
248(1) "mineral resource"

Principal Issues: Whether a deposit qualifies as a mineral resource as that term is defined in subsection 248(1) of the Act where the principal minerals to be extracted are XXXXXXXXXX.

Position: Yes.

Reasons: Favourable opinion from NRCan.