Part VI.1 – Loukidelis PC

Dividends to a trust and Part VI.1 tax

Opco wishes to redeem low-low preference shares held by a family trust, which proposes to allocate the resulting deemed dividend to a beneficiaryco (Benco). Will Part VI.1 tax apply to Opco? If the preference shares are subject to a price…

TPSs and PACs

The CRA has previously stated that a deemed dividend arising on the redemption of a taxable preferred share (TPS) for a “specified amount” will not be an excluded dividend for the purposes of Part VI.1 of the Income Tax Act…

Sale of shares on income account

In Rudolph v R, 2024 TCC 148, the Tax Court held that the taxpayer had not disposed of shares in 2007 as alleged by the CRA. Instead, the taxpayer had received a loan from the purchaser in 2007 that was…

Deemed proceeds of an asset

In 0808414 B.C. Ltd. v R, 2024 TCC 99, the taxpayer sold equipment to a non-arm’s length purchaser as part of a transaction that also transferred employees and obligations under a pension and benefits plan. The CRA reassessed on the…

Trust beneficiary liability under s 160

In Barwicz v R, 2024 CCI 93, the Tax Court held that a beneficiary of a trust was liable under section 160 for its unpaid tax to the extent of capital distributions received from the trust. Subsection 107(2), which provides…

Fraudulent conveyances

In Ontario Securities Commission v Camerlengo Holdings Inc., 2023 ONCA 93, the OSC brought a claim under s 2 of the Fraudulent Conveyances Act (Ontario) (the “FCA”) against a husband and wife. The husband and wife convinced a judge to…

Purported shareholder loan repayments treated as income

In Kumar v R, 2024 TCC 105 (informal procedure), the Court found that the CRA had properly reassessed the appellant to include in his income payments to him and his son made by a corporation to which the appellant had…

Category: Part VI.1