Income Tax Severed Letters - 1995-11-17

Administrative Letter

19 September 1995 Administrative Letter 952402A - IDENTICAL PROPERTIES HELD AS INVENTORY - ESCROW

Unedited CRA Tags
10(1) 47(1)

Principal Issues:

Ruling

8 November 1995 Ruling 941503A F - RÉGIME D'OPTION D'ACHAT D'ACTIONS

Unedited CRA Tags
7(1)b) 7(3)b) 110(1)d)

Principales Questions:

Demande de confirmer l'interprétation du Ministère concernant les alinéas 7(1)b), 7(3)b) et 110(1)d) dans le contexte d'un régime d'option d'achat d'actions lorsque le contribuable a le choix de recevoir la valeur des actions en argent plutôt qu'en actions.

Position Adoptée: 5-952278

12 October 1995 Ruling 9519423 - CHILD CARE FUND - TAXABLE BENEFITS

Unedited CRA Tags
6

Principal Issues:

Technical Interpretation - External

9 November 1995 External T.I. 9528015 - DEDUCTIBILITY OF LIFE INSURANCE PREMIUMS

Unedited CRA Tags
20(1)(e.2)

Principal Issues:

To get a deduction for insurance premiums on a life insurance policy used as collateral for a loan does the payor of the premiums have to be the policyholder as well.

Position:

Yes

Reasons:

8 November 1995 External T.I. 9524885 - LOTTERY WINNINGS - COST OF TICKETS

Unedited CRA Tags
9

Principal Issues:

The deductibility of the cost of lottery tickets purchased by a taxpayer in the course of carrying on the business of selling these tickets to customers at a profit and the taxability of winnings on such tickets not distributed or sold to customers.

Position:

Amounts should generally be taxable/deductible as part of business carried on.

Reasons: See above

7 November 1995 External T.I. 9526245 F - APPLICATION DES PARAGRAPHES 104(13), (13.1), (13.2)

Unedited CRA Tags
104(13) 104(13.1) 104(13.2) 104(24) 104(14)

Principales Questions:

Différence entre les paragraphes 104(13) et 104(14) lorsque le testament contient une clause permettant au fiduciaire d'utiliser les revenus de la fiducie au bénéfice d'un enfant mineur pour le bénéfice de l'enfant.

Position Adoptée:

6 November 1995 External T.I. 9523015 - RECEIVABLES ON WINDING UP OF FARMING PARTNERSHIP

Unedited CRA Tags
28(1) 853(3) 98(3) 98(5)

Principal Issues:

Winding up of a farming partnership under 85(3), 98(3) or 98(5) where the section 28 election has been made. Are the trade receivables to be included in the partnership's income for its final fiscal year.

Position:

No. Partnership to include in its income only amounts received or deemed received in the course of carrying on business.

Reasons:

3 November 1995 External T.I. 9515935 - FOOD, BEVERAGES AND ENTERTAINMENT - FUND RAISING

Unedited CRA Tags
18(1)(l) 67.1

Principal Issues:

Whether expenses incurred for a charitable golf tournament are deductible.

Whether an amount paid by a participant in or by the host corporation of the tournament to a registered charity is a gift.

Position:

Expenses for green fees or the use of the recreational facilities of the golf club are not deductible. Expenses for meals, beverages, entertainment or the use of the dining room or banquet hall would be subject to the limit provided in subsection 67.1(1), unless the tournament is a fund raising event the primary purpose of which is to benefit a registered charity.

It is a question of fact whether any gifts have been made. The full amount paid by a participant may not represent a gift and subsection 4(4) would prevent the double deducting of any amounts paid.

Reasons:

3 November 1995 External T.I. 9524555 - WITHHOLDING TAX ON INT EARNED IN A LAW FIRM'S TRUST ACCT

Unedited CRA Tags
212(1)(b) 215(1)

Principal Issues:

withholding tax on interest earned in a law firm's trust accounts

Position:

general position stated in 1990 round table

Reasons:

2 November 1995 External T.I. 9527755 - APPROVED ASSOCIATIONS/ORG. FOR SCIENTIFIC RESEARCH

Unedited CRA Tags
37(1)(A)(II)

Principal Issues: General information concerning "approved" recipients of payments in respect of scientific research & experimental development

Position: Discussed paragraph 37(1)(a)(ii) in general terms.

Reasons: Prior positions taken.

2 November 1995 External T.I. 9517225 - FARM SUPPORT PAYMENTS - INDIVIDUAL PRODUCER ACCOUNT

Unedited CRA Tags
9(1) 12(1)(X) REG 234(2)

Principal Issues:

1 November 1995 External T.I. 9524165 - RRSP SPOUSAL PLAN STATUS ON DEATH OR MARRIAGE BREAKDOWN

Unedited CRA Tags
146(1)

Principal Issues: Change of status of RRSP spousal plan on death or marriage breakdown

Position: Restated general information

Reasons: Routine

1 November 1995 External T.I. 9517415 - NISA-ATTRIBUTION-COMMUNAL ORGANIZATION

Unedited CRA Tags
12(10.2) 73(5) 74.3(1) 143

Principal Issues:

31 October 1995 External T.I. 9525695 - SINGAPORE PENSION EXEMPT FROM TAX (4093-S2)

Unedited CRA Tags
56(1)(a) Art 18

Principal Issues:

Whether pensions received from Singapore by a resident of Canada are exempt from tax in Canada.

Position:

Yes.

Reasons:

30 October 1995 External T.I. 9506615 - U.S. CIVIL SERVICE PENSION PLAN AMOUNTS (7988)

Unedited CRA Tags
126(7) 126(1)

Principal Issues:

Do contributions to the "Civil Service Retirement System" ("CSRS") in the United States qualify as "non-business-income taxes" for purposes of the foreign tax credit provisions in section 126 of the Income Tax Act (the "Act").

Position:

no

Reasons:

30 October 1995 External T.I. 9528185 - INCREASE IN INTEREST IN A CORPORATION

Unedited CRA Tags
55(3)(a) 55(2)

Principal Issues:
increase in interest in a corporation

Position:
an interest in a corporation includes an indirect interest

Reasons:
an interest in a corporation is not restricted to the ownership of shares; a person who owns participating shares of a parent corporation has an interest in each subsidiary corporation

25 October 1995 External T.I. 9517045 F - CONSÉQUENCES FISC DES TRANSACTIONS D'UN SYNDICAT OUVRIER

Unedited CRA Tags
8(1)i) 8(5)c) 149(1)k)

Principales Questions:

i)Est-ce qu'un syndicat ouvrier peut verser sans conséquences fiscales un montant forfaitaire à un syndiqué au moment de sa retraite?

ii)Est-ce qu'une somme de 100 $ versée à un syndiqué à titre de prix de présence par un syndicat ouvrier lors de ses assemblées serait non imposable pour le gagnant?

iii)Est-ce que le revenu de location provenant de la location d'une partie d'un immeuble qu'un syndicat ouvrier possède et occupe, serait non imposable?

Position Adoptée:

24 October 1995 External T.I. 9523385 - RRIF MINIMUM AMOUNT IN YEAR OF TRANSFERS BETWEEN RRIF'S

Unedited CRA Tags
146.3(2)(e.1) 146.3(1)

Principal Issues:

24 October 1995 External T.I. 9506755 - RENUNCIATION OF SPECIFIED CDE TO PARTNERSHIP

Unedited CRA Tags
66(12.601) 66(12.61) 66(16) 66(18)

Principal Issues:

24 October 1995 External T.I. 9523905 - DESIGNATION OF INCOME TO PARENT OR SUBSIDIARY

Unedited CRA Tags
66.7(10)(g)

Principal Issues:

24 October 1995 External T.I. 9512495 F - TERRAIN BOISÉ=BIEN AGRICOLE ADMISSIBLE?

Unedited CRA Tags
110.6(19) 110.6(1) 110.6(2)

Principales Questions:

23 October 1995 External T.I. 9508525 - 60 MONTH NON-RESIDNET TRUSTS

Unedited CRA Tags
94(1) 95(2)(f) 128.1(1) 107(2)

Principal Issues:

20 October 1995 External T.I. 9522855 F - REMBOURSEMENT OU ALLOCATION POUR VETEMENTS

Unedited CRA Tags
6(1)(a) 6(1)(b)

Principales Questions:

Est-ce qu'une somme reçue par un employé à titre d'allocation ou de remboursement des dépenses engagées pour respecter le code vestimentaire exigé par l'employeur serait imposable?

Position Adoptée:

20 October 1995 External T.I. 9520875 - "Reasonableness" of expense & Tax-free Allowances

Unedited CRA Tags
67

Principal Issues:

whether individual or total expenses considered in determining "reasonableness" of an expense and whether a MP must all for all income received including any tax-free allowances before s/he may deduct expenses

Position:

individual and total expenses considered. While the Dept has no authority to require an itemized accounting of an allowance which is exempted from income by statute, the fact that a tax free allowance has been received would be taken into consideration in determining the "reasonableness" of an expense which one seeks to deduct if the purpose of the allowance is to defray that type of expense for which a deduction is sought

Reasons:

19 October 1995 External T.I. 9521095 - UNDIVIDED INTEREST IN FARMLAND

Unedited CRA Tags
73

Principal Issues:
The application of 73(3)(b) in a hypothetical situation where a 50% undivided interest in farmland is gifted to an adult child who is resident in Canada.

18 October 1995 External T.I. 9523715 - GIFT OF CAPITAL PROPERTY BY NON-RESIDENT

Unedited CRA Tags
118.1(6) 118.1(5) REG 3504

Principal Issues:

18 October 1995 External T.I. 9521895 - taxation of lump sum settlement payment from employer

Unedited CRA Tags
6(1)(a) 5(1)

Principal Issues:

17 October 1995 External T.I. 9524035 - S 80 AND THE FORGIVENESS OF INTEREST PRIOR TO MAY 9,1985 SECTION 80

Unedited CRA Tags
80(4)

Principal Issues:

16 October 1995 External T.I. 9525985 F - GEL SUCCESSORAL VIA SOCIETE DE PERSONNES

Unedited CRA Tags
103(1.1)

Principales Questions:
Le Ministère appliquera-t-il les dispositions du paragraphe 103(1) ou (1.1) de la Loi si une société de personnes est utilisée comme véhicule de gel successoral et que la participation de l'auteur du transfert dans les revenus de la société de personnes correspond à un pourcentage fixe calculé à partir de la valeur marchande du bien au moment du transfert?

Position Adoptée:
Considérant la situation décrite dans la demande d'opinion, nous sommes d'avis que la répartition du revenu ne tient pas compte de l'apport de chaque associé. Par conséquent, nous sommes d'opinion que le Ministère devrait appliquer le paragraphe 103(1.1) de la Loi afin de répartir, pour fins fiscales, le revenu de la société de personnes en fonction de l'apport de chaque associé.

13 October 1995 External T.I. 9516825 - TRANSFER OF INVESTMENT PROPERTY TO A SPOUSE

Unedited CRA Tags
73

Principal Issues:

12 October 1995 External T.I. 9519385 - Deductibility of automobile insurance-pleasure

Unedited CRA Tags
18

Principal Issues:

12 October 1995 External T.I. 9510535 - SHARECROPPING, WOODLOTS AND GRAVEL DEPOSITS

Unedited CRA Tags
110.6(1) 12(1)(g)

Principal Issues:

12 October 1995 External T.I. 9515715 - CAPITAL GAINS ELECTION - CLIENT LISTS

Unedited CRA Tags
110.6(19) 14(1) 14(5)

Principal Issues:

11 October 1995 External T.I. 9424895 - QSBCS - CIRCULARITY

Unedited CRA Tags
110.6(15) 55(2) 110.6(8)

Principal Issues:

6 October 1995 External T.I. 9516275 - MEANING OF SPOUSE RELATING TO A "QUALIFIED FARM"

Unedited CRA Tags
110.6

Principal Issues:

2 October 1995 External T.I. 9516495 - TAX EXEMPT STATUS OF AN AGRICULTURAL SOCIETY

Unedited CRA Tags
149

Principal Issues:

13 September 1995 External T.I. 9521125 - PARTIAL RENUNCIATION OF AN INCOME INTEREST

Unedited CRA Tags
106(2)

Principal Issues:

13 September 1995 External T.I. 9514685 - CAPITAL GAINS ELECTION - PRINCIPAL RESIDENCE

Unedited CRA Tags
110.6 54

Principal Issues:

18 August 1995 External T.I. 9516975 - XXXXXXXXXX & PERSONAL TRUSTS

Unedited CRA Tags
143(1) 248(1) 110.6(19)

Principal Issues:

18 July 1995 External T.I. 9505245 - ATTRIBUTION OF INCOME OF A MINOR

Unedited CRA Tags
74.1(2) 74.5(6)

Principal Issues:

general discussion of attribution re trust for minor

Position:

general positions

Reasons:

23 June 1995 External T.I. 9509155 - capital gains election & testamentary trust

Unedited CRA Tags
110.6(19) 70(5) 104(21)

Principal Issues:

deemed gain of a trust payable?

Position:

terms of trust determine what is payable.

Reasons:

16 June 1995 External T.I. 9511585 - AMALGAMATION

Unedited CRA Tags
66.7(7)(c)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

DRAFT

Revenue Canada Round Table
Canadian Petroleum Tax Society
June, 1995

Question No. 11

AMALGAMATIONS

7 June 1995 External T.I. 9511635 - REASONABLE BONUSES

Unedited CRA Tags
67

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Canadian Petroleum Tax Society Roundtable
June 7, 1995

Question 6

SALARIES PAID OUT OF INVESTMENT INCOME

5 May 1995 External T.I. 9511655 - RESIDENCE -- OVERSEAS EMPLOYMENT -- CPP

Unedited CRA Tags
2(1)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Revenue Canada Roundtable
Canadian Petroleum Tax Society Conference
June 7, 1995

Question 1 - Overseas Employment - CPP

5 May 1995 External T.I. 9511665 - OETC -- PART-TIME EMPLOYMENT

Unedited CRA Tags
122.3(1)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Revenue Canada Roundtable
Canadian Petroleum Tax Society Conference
June 7, 1995

Question 2 - Overseas Employment Tax Credit - Part-Time Employment

5 May 1995 External T.I. 9511675 - OETC -- SECONDMENT

Unedited CRA Tags
122.3(1)(b)(i)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Revenue Canada Roundtable
Canadian Petroleum Tax Society Conference
June 7, 1995

Question 3 Overseas Employment Tax Credit -- Secondment

Conference

7 June 1995 Roundtable, 9513870 - EMPLOYEE SAVINGS & SHARE PURCHASE PLAN

Unedited CRA Tags
5(1) 6(1)(g) 7(1) 32.1

Principal Issues:

7 June 1995 Roundtable Q. 4, 9511610 - FOREIGN AFFILIATES - DEEMED ACTIVE BUSINESS INCOME

Unedited CRA Tags
95(2)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

DRAFT

Revenue Canada Round Table
Canadian Petroleum Tax Society
June 7, 1995

Question #4

SUBSECTION 95(2)(a)(ii) - BACK-TO-BACK LOAN

7 June 1995 Roundtable Q. 12, 9511620 - FLING DEADLINES UNDER SECTION 216

Unedited CRA Tags
216

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Revenue Canada Round Table
Canadian Petroleum Tax Society
June 7, 1995

Question #12

FILING DEADLINE UNDER SUBSECTION 216(4)

7 June 1995 Roundtable Q. 13, 9513880 - INTEREST DEDUCTIBILITY - BORROW TO REPAY CAPITAL

Unedited CRA Tags
20.2(2) 20(1)(c)

Principal Issues:

Technical Interpretation - Internal

31 October 1995 Internal T.I. 9524767 - MORTGAGE AS A QUALIFIED INVESTMENT FOR AN RRSP

Unedited CRA Tags
REG 4900(1)(j) 4900(4) 251(1) 146(10)

Principal Issues:

Whether the mortgage was insured as provided by the Regulations to be a qualified investment for purposes of a self-directed RRSP

Position:

No

Reasons:

31 October 1995 Internal T.I. 9527067 F - ANNÉE ADÉQUATE - DÉDUCTION DES FRAIS DE DÉMÉNAGEMENT

Unedited CRA Tags
62(1)

Principales Questions:

En 1993, un contribuable a payé des sommes au titre de frais de déménagement. Le contribuable a commencé à exploiter une nouvelle entreprise à son nouveau lieu de travail.

1. est-ce que l'année au cours de laquelle a eu lieu le déménagement est le seul critère à considérer pour déterminer l'année où ce contribuable peut demander la déduction des frais de déménagement?

2. si le revenu du contribuable au nouveau lieu de travail était insuffisant en 1993 et en 1994, est-ce qu'il pourrait demander, en 1995, la déduction des frais de déménagement qui n'étaient pas déductibles au cours de ces années?

Position Adoptée:

26 October 1995 Internal T.I. 9518727 - MORTGAGEE IN POSSESSION

Unedited CRA Tags
79.1

Principal Issues:

23 October 1995 Internal T.I. 9503766 - PV OR STRAIGHT LINE

Unedited CRA Tags
18(9.1)
Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(9.1)
straight line method

Principal Issues:

20 October 1995 Internal T.I. 9526437 - GOVERNMENT ASSISTANCE - AQVIR LOANS

Unedited CRA Tags
13(7.1) 127(9)

Principal Issues:

19 October 1995 Internal T.I. 9508827 F - RÉGÉNÉRATION D'UNE PERTE AUTRE QU'EN CAPITAL

Unedited CRA Tags
111(8) 3 111(1)b) 2(2) 111(1.1)

Position Adoptée:

3 October 1995 Internal T.I. 9524756 - "INORDINATE AMOUNT OF TIME" MEANING

Unedited CRA Tags
118.3

Principal Issues:

meaning of "inordinate amount of time" for purposes of the credit for mental or physical impairment

Position:

means something longer than usual or longer than the average person would take to perform the task. Phrase must be read in its entire context ("...the individual is blind or is unable (or requires an inordinate amount of time) to..."). Evident that the period of time being referred to is a time so excessive or so great that were it not for the necessity of performing the basic activity it might not otherwise be undertaken.

Reasons:

13 September 1995 Internal T.I. 9520497 - MOVING EXPENSES

Unedited CRA Tags
62

Principal Issues:

28 August 1995 Internal T.I. 9521867 - identical properties

Unedited CRA Tags
10(1) 47(1) 53(1)

Principal Issues:

11 August 1995 Internal T.I. 9520827 - WESTERN GRAIN

Unedited CRA Tags
12(1)(x) 53(2)(K)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

							August 11, 1995
	Client Assistance Directorate		HEADQUARTERS
	Attn: Louis Lamontagne			A.M. Brake
	Chief, Correspondence Section		(613) 957-8953
							952082

Western Grain Transition Payment Program

4 August 1995 Internal T.I. 9514766 - PREPARATION OF T3 SLIPS

Unedited CRA Tags
REG 204(1)

Principal Issues: aggregating of T3 slips by a dealer/nominee

Position: no objection to aggregation

Reasons: the Act does not require it

30 June 1995 Internal T.I. 9515917 - capital gains election & trusts

Unedited CRA Tags
110.6(19) 104(21.2)

Principal Issues: capital gains election available to a trust

Position: unavailable unless 104(21.2) is met

Reasons: legislation

Ministerial Letter

30 October 1995 Ministerial Letter 9524708 - MEDICAL PRACTIONER - MASSAGE THERAPISTS

Unedited CRA Tags
118.2

Principal Issues:

Medical expenses. More specifically whether massage therapists are considered medical practitioners for purposes of the medical expense tax credit.

Position:

Question of Fact

Reasons: