knowledge topics
Income Attribution
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define income attribution.
- Define beneficial interest.1
- Explain the purpose of the income attribution rules.
- Identify individuals who the Canada Revenue Agency deems to be related persons.2
- Identify individuals who the Canada Revenue Agency deems to be unrelated persons.3
- Explain how the Canada Revenue Agency views dealings between individuals with respect to arm’s length.
- When they are related persons2
- When they are unrelated persons3
- Explain criteria that the courts generally use in determining whether parties to a transaction are not dealing at arm’s length.4
- Explain when income attribution may exist.
- Between spouses or common-law partners1
- Between a parent and an adult child5
- Between a parent and a related minor child6
- Estimate the potential income tax impact that may occur due to the transfer of property.
- Between spouses or common-law partners
- Between a parent and an adult child
- Between a parent and a related minor child
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally

REFERENCES
- http://www.cra-arc.gc.ca/E/pub/tp/it511r/it511r-e.html
- http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f5/s1-f5-c1-eng.html#N101DA
- http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f5/s1-f5-c1-eng.html#N1084C
- http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f5/s1-f5-c1-eng.html#N10996
- http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f5/s1-f5-c1-eng.html#N101D7
- http://www.cra-arc.gc.ca/E/pub/tp/it510/it510-e.html