3 December 2019 CTF Roundtable Q. 2, 2019-0824381C6 - Foreign taxes paid -- summary under Paragraph 261(2)(b)

CRA indicated that for purposes of claiming the foreign tax credit under s. 126 in situations where the foreign tax is paid at a different time than the income arose, the foreign tax can be translated into Canadian dollars on the date of payment of the foreign tax or, alternatively, through use of the same relevant spot rate as was used for the conversion for the foreign income itself: either method is acceptable as long as it is used consistently from one year to another.