Income Tax Severed Letters - 1996-04-19

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.

									960880
XXXXXXXXXX							M.P. Sarazin

April 18, 1996

Dear Sir:

Re: Self-Directed RRSP and Bed and Breakfast Operation

TO BE FAXED

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.

Mike D. Skinner
Project Manager
Project Management Division PWGSC			960893
Phase IV Level 1						M.P. Sarazin
Phone: 775-4567
Fax:   775-4916

April 16, 1996

Dear Sir:

Re: Electing to Buy Back Past Service

Principales Questions:

Institution financière véritable - Investissements sous forme de prêts et titres

Position Adoptée:

Principal Issues:

Refund of premiums - Meaning of financial support

Position:

Question of fact

Reasons:

Principal Issues:

Can a person pool investments on behalf of 6 RRSPs and 2 investment accounts for relatives?

Position:

No

Reasons:

Principal Issues:

Whether 7(1)(b) applies where an employee has option to take cash or shares under a SAR.

Position:

Yes, if the SAR is an agreement as contemplated by subsection 7(1).

Reasons:

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.

									960977
XXXXXXXXXX							A.M. Brake

April 10, 1996

Dear XXXXXXXXXX:

This is in reply to your letter of March 16, 1996 wherein you asked what treatment should be given GST paid on items purchased for use in your business which is not registered for GST purposes.

Principal Issues:

Whether the issuance of a life insurance policy along with an annuity contract and/or any agreement to lend money to a policy holder would cause us to consider whether the transactions are sufficiently inter-connected to result in our applying the general anti-avoidance rule (GAAR) found in section 245 of the Act.

Position:

Possibly. Depends on facts, circumstances and documentation.

Reasons:

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.

									961174
XXXXXXXXXX							Jim Wilson
(613) 957-2123

Attention: XXXXXXXXXX

April 4, 1996

Dear Sirs:

Re: Paragraph 216(1)(c) of the Income Tax Act (the "Act")

Principales Questions:

Le paragraphe 154(2) de la Loi s'applique-t-il a une fiducie

Position Adoptée:

Principal Issues:

Whether a tax receipt can be issued for donations of inventory.

Position:

Yes.

Reasons:

Position Adoptée:

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.

									5-953085
XXXXXXXXXX							M. Shea-DesRosiers

A l'attention de XXXXXXXXXX

Le 3 avril 1996

Objet: Frais relatifs à un Régime enregistré d'épargne- retraite("REER"),
Fonds enregistré de revenu de retraite ("FERR"), Compte de retraite immobilisé ("CRI")

Principal Issues:

CCA entitlement by co-owners of Depreciable property

Position:

Each owner has their own separate and independent class.

Reasons:

Principal Issues:

1. Whether Form T2200 should be certified where an employee voluntarily uses work space in his or her home in circumstances where the employer provides the employee with an office with respect to his or her day-to-day duties.

2. Whether Form T2200 should be certified with respect to work space in the home on the basis that the employer provides a business telephone and a fax machine in connection with employment duties.

3. Whether the provisions of subsection 8(13) of the Income Tax Act (the Act) need to be considered by an employer in determining whether to certify Form T2200 with respect to work space in the home

Position:

1. No

2. No, this does not establish that the employee was required to maintain an office space in his or her home.

3. No

Reasons:

Principal Issues:

Management fees. Cost + ?% of cost.

Position:

Department's view is that a management fee which does not exceed 115% of reasonable costs is deductible.

Reasons:

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.

									5-953229
XXXXXXXXXX							(613) 957-8953

Attention: XXXXXXXXXX

March 13, 1996

Dear Sirs:

Principales Questions:

Est-ce que peut tenir compte des employés à temps partiel pour déterminer l'équivalent de plus de 5 personnes à plein temps pour les fins de la définition d'entreprise de placement au paragraphe 95(1)?

Position Adoptée: