CRA Interpretations

List Of CRA Interpretations

IC99-1R1 Registered Disability Savings Plans

IC99-1R1 Registered Disability Savings Plans 1. This circular explains the rules of the Income Tax Act (ITA) and the Canada Revenue Agency’s (CRA) conditions for registering disability savings plans (DSPs). It also provides information on the Canada disability savings grant (grant) and the Canada disability savings bond (bond). Authority 2. Subsection 146.4(4) of the ITA lists the registration requirements

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Income Earned or Realized – The Kruco Case

Income earned or realized – the Kruco case No. 33  September 16, 2005 In This Issue Income Earned or Realized – The Kruco Case Permanent Establishment – The Dudney Case Update The Income Tax Technical News is produced by the Policy and Planning Branch. It is provided for information purposes only and does not replace the law. If you have any

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Income Tax – Technical News No. 42

International Financial Reporting Standards The purpose of this article is to provide guidance on how the requirement for publicly accountable enterprises (PAEs) to adopt International Financial Reporting Standards (IFRS), effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011, will affect those enterprises’ tax reporting. IFRS will

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Income Tax – Technical News No. 42 (June 4, 2010)

May 31, 2010 This version is only available electronically. In This Issue International Financial Reporting Standards The Income Tax Technical News is produced by the Legislative Policy and Regulatory Affairs Branch. It is provided for information purposes only and does not replace the law. If you have any comments or suggestions about the matters discussed in this

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Income Tax – Technical News No. 43

Taxation of Roth IRAs A Roth Individual Retirement Arrangement (“IRA”) is an individual retirement plan established pursuant to section 408A of the United States (the “U.S.”) Internal Revenue Code of 1986. For U.S. income tax purposes, contributions to a Roth IRA are not deductible from income, and withdrawals are generally not included in income. For an

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Income Tax Folio S1-F1-C1, Medical Expense Tax Credit

Income Tax Folio S1-F1-C1, Medical Expense Tax Credit Series 1: Individuals Folio 1: Health and Medical Chapter 1: Medical Expense Tax Credit Summary The medical expense tax credit provides tax relief for individuals who have sustained significant medical expenses for themselves or certain of their dependants. The medical expense tax credit is a non-refundable tax credit that is applied

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Income Tax Folio S1-F1-C2, Disability Tax Credit

Income Tax Folio S1-F1-C2, Disability Tax Credit Series 1: Individuals Folio 1: Health and Medical Chapter 2: Disability Tax Credit Summary The disability tax credit is a non-refundable tax credit that provides tax relief for individuals who have a severe and prolonged impairment in physical or mental functions by providing a credit against Part I taxes payable. The disability tax credit

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Income Tax Folio S1-F1-C3, Disability Supports Deduction

Income Tax Folio S1-F1-C3, Disability Supports Deduction Series 1: Individuals Folio 1: Health & Medical Chapter 3: Disability Supports Deduction Summary The disability supports deduction (commonly referred to as the attendant care deduction for tax years prior to 2004), provides tax relief for individual taxpayers who have paid for certain medical expenses to enable them

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Income Tax Folio S1-F2-C2, Tuition Tax Credit

Income Tax Folio S1-F2-C2, Tuition Tax Credit Series 1: Individuals Folio 2: Students Chapter 2: Tuition Tax Credit Summary When calculating Part I tax payable, a student may be able to claim the non‑refundable tuition tax credit. The purpose of the tuition tax credit is to allow students to reduce their income taxes by taking

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Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance

Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance Series 1: Individuals Folio 2: Students Chapter 3: Scholarships, Research Grants and Other Education Assistance Summary This Chapter discusses the taxation of scholarships, fellowships, bursaries, prizes, research grants, certain government financial assistance for education and training, forgivable loans and repayable awards. Paragraph 56(1)(n) generally includes

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Income Tax Folio S1-F3-C1, Child Care Expense Deduction

Income Tax Folio S1-F3-C1, Child Care Expense Deduction Series 1: Individuals Folio 3: Family Unit Issues Chapter 1: Child Care Expense Deduction Summary The purpose of the legislative provisions regarding child care expenses is to provide some relief for taxpayers who incur child care expenses in order to work, carry on a business or undertake certain educational

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Income Tax Folio S1-F3-C2, Principal Residence

Income Tax Folio S1-F3-C2, Principal Residence Series 1: Individuals Folio 3: Family Unit Issues Chapter 2: Principal Residence Summary This Chapter discusses the principal residence exemption, which can eliminate or reduce (for income tax purposes) a capital gain on the disposition of a taxpayer’s principal residence. In order for a property to qualify for designation as the

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Income Tax Folio S1-F3-C3, Support Payments

Income Tax Folio S1-F3-C3, Support Payments Series 1: Individuals Folio 3: Family Unit Issues Chapter 3: Support Payments Summary The purpose of this Chapter is to explain the position of the Canada Revenue Agency (CRA) concerning the taxation of support payments made under a court order or a written agreement for the maintenance of a

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Income Tax Folio S1-F3-C4, Moving Expenses

Income Tax Folio S1-F3-C4, Moving Expenses Series 1: Individuals Folio 3: Family Unit Issues Chapter 4: Moving Expenses Summary This Chapter explains the moving expense deduction. In computing income, employees, self-employed individuals and students may deduct certain moving expenses they paid for an eligible relocation. The Chapter specifies the expenses that are eligible as moving

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Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits

Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits Series 1: Individuals Folio 4: Personal Credits Chapter 1: Basic Personal & Dependant Tax Credits Summary Individuals are entitled to claim certain non-refundable tax credits in calculating taxes payable for a tax year. These credits reduce the amount of income tax an individual must pay.

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Income Tax Folio S2-F1-C1, Health and Welfare Trusts

Income Tax Folio S2-F1-C1, Health and Welfare Trusts Series 2: Employers and Employees Folio 1:  Specific Plans Offered by Employers to Employees Chapter 1: Health and Welfare Trusts Summary The purpose of this Chapter is to explain the position of the Canada Revenue Agency (CRA) concerning the taxation of certain employee health and welfare benefit programs

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Income Tax Folio S2-F1-C2, Retiring Allowances

Income Tax Folio S2-F1-C2, Retiring Allowances Series 2: Employers and Employees Folio 1: Specific Plans Offered by Employers to Employees Chapter 2: Retiring Allowances Summary This Chapter discusses the taxation of retiring allowances. A retiring allowance is an amount received on or after the retirement of an employee in recognition of long service or in respect of a loss of

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Income Tax Folio S2-F3-C1, Payments from Employer to Employee

Income Tax Folio S2-F3-C1, Payments from Employer to Employee Series 2: Employers and Employees Folio 3: Employment Benefits Chapter 1: Payments from Employer to Employee Summary This Chapter discusses the federal income tax treatment of certain payments to individuals such as inducement payments, and non-competition payments made to departing employees. The Chapter also discusses amounts receivable by

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