Income Tax Severed Letters - 1997-02-07

Miscellaneous

4 November 1996 9635481 F - OUTLAY OR EXPENSE ET DEPENSE ENGAGEE OU EFFECTUEE

Unedited CRA Tags
12(1)(x)

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.

Issue sheet
U. S. Countervailing duties (CVD)

Ruling

30 November 1995 Ruling 9632073 - XXXXXXXXXX-FLEXIBLE BENEFIT PLAN

Unedited CRA Tags
6(1)(a)(i) 56(2)

Principal Issues:

standard flex benefit plan. Only point for consideration was whether the employer could give additional flex dollars to any employee who opts to give up coverage under the wage loss replacement plan to which the employer ordinarily contributes. When the employee chooses to participate in a separate employee pay-all plan, the employer is no longer required to contribute to the "core" plan and hence "bonus" flex dollars are put in the Health Spending Account.

Position:

approved as the contribution by the employer to the wage loss replacement plan is not otherwise required to be included in income as it is exempted under 6(1)(a)(i), therefore, 56(2) does not apply

Reasons:

30 November 1995 Ruling 9632153 - OPTIONS WITH SAR RIGHTS

Unedited CRA Tags
7(1)

Principal Issues:

1)Will a SAR be an SDA where partial vesting under SAR occurs on each anniversary date?

2)Will 7(1)(b) apply where employee requests cash payment for value of stock option and employer chooses to settle its obligation by issuing shares having fmv equal to economic value of option?

Position:

1)question of fact, no ruling

2)no

Reasons:

30 November 1995 Ruling 9632893 - RETIRING ALLOWANCE

Unedited CRA Tags
248(1) 60(j.1)

Principal Issues:

Whether the amount being paid is a retiring allowance within the meaning of subsection 248(1) and whether the payment is reasonable within the parameters of section 67?

Position:

Yes

Reasons:

30 November 1995 Ruling 9605343 - ARTICLE XXII(2) OF U.S. CONVENTION - CAPITAL GAINS

Unedited CRA Tags
ART xxii 104(6)(b) 104(24) 39(1) 39(2)

Principal Issues:

1)Is gain attributable to foreign currency on sale of U.S. securities sourced to U.S. for purposes of Article XXII(2) of Canada-U.S. Convention?

2)Can Estate deduct income attributable to net taxable capital gains under 104(6)(b)?

Position:

1)Yes.

2)Yes.

Reasons:

30 November 1995 Ruling 9632903 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

30 November 1995 Ruling 9605373 - XXXXXXXXXX

Unedited CRA Tags
9

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.

XXXXXXXXXX							3-960537
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sir:

Re: XXXXXXXXXX

30 November 1995 Ruling 9633543 - CHANGE OF CONTROL

Unedited CRA Tags
SCH 212(1)(B)(VII) 212(1)(b)(vii)

Principal Issues:

Supplemental to ruling 3-962985, Changes in the amount of debentures being issued and some changes to the terms of the debenture.

Position:

Ruling will continue to be binding. The changes are not significant enough to change ruling.

Reasons:

30 November 1995 Ruling 9609943 - FORWARD CONTRACT, MARKETABLE SECURITY

Unedited CRA Tags
132(6) 206(2)

Principal Issues:

1)Are forward contracts considered marketable securities fo the Act?

2)Will Gov. of Canada bonds given as security to foreign exchanges be foreign property?

Position:

1) No

2) No

Reasons:

30 November 1995 Ruling 9634393 - INCORPORATION OF XXXXXXXXXX

Unedited CRA Tags
248(1) 112(2.1)

Principal Issues:

Are Class XXXXXXXXXX shares of a XXXXXXXXXX acquired in the ordinary course of business by XXXXXXXXXX?

Position:

No.

Reasons:

30 November 1995 Ruling 9618943 - XXXXXXXXXX EBP

Unedited CRA Tags
248(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.

XXXXXXXXXX							961894
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: Advance Income Tax Ruling
XXXXXXXXXX

Technical Interpretation - External

28 January 1997 External T.I. 9635055 - attribution under 74.4(2) if 74.1(1) and 74.2(1) apply

Unedited CRA Tags
74.4(2) 74.1(1) 74.2(1)

Principal Issues:

whether 74.4(2) applies when the "regular" attribution rules already apply.

Position:

Question of fact whether the "one of the main purposes" test is met. Given that there is already attribution, it would not appear that a purpose would be to transfer income or a benefit to the spouse, since in fact any such amount is being attributed back to the transferor.

Reasons:

6 January 1997 External T.I. 9627215 - UNION DUES

Unedited CRA Tags
8(1)(i)(iv)

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.

		962721
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

January 6, 1997

Dear Sirs:

Re: Union Dues

This is in reply to your letter of June 26, 1996, concerning the above-noted subject. We apologize for the delay in replying.

24 October 1996 External T.I. 9633065 - PENSIONABLE EARNINGS

Unedited CRA Tags
REG 8504 REG 8505(3)

Principal Issues:

Whether registered pension plan may exclude certain employment income amounts from its definition of "pensionable earnings".

Position:

Yes.

Reasons:

22 October 1996 External T.I. 9604305 - PROFESSIONAL CORPORATION - DENTAL HYGIENIST

Unedited CRA Tags
248(1)

Principal Issues:

Does a "professional corporation" as defined in subsection 248(1) include a corporation that carries on the practice of a dental hygienist.

Position:

Generally no.

Reasons:

10 September 1996 External T.I. 962205A F - INTÉRETS SUR EMPRUNT POUR RACHETER DES ACTIONS

Unedited CRA Tags
20(1)(c)

Principales Questions:

Intérêts sur emprunt pour racheter partiellement du capital-actions

Position Adoptée:

Conference

11 October 1996 APFF Roundtable Q. 3, 9631080 F - AVANTAGE FISCAL

Unedited CRA Tags
245(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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE

APFF - CONGRES 1996

3.2 Détermination de l'«avantage fiscal»

11 October 1996 APFF Roundtable Q. 24, 9631070 F - APPLICATION DES CONVENTIONS FISCALES ET LA DGAE-APFF

Unedited CRA Tags
245

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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1996

Question 24

Application des conventions fiscales

27 November 1996 CTF Roundtable, 9637430 - LOSS CONSOLIDATION - RELATED OR AFFILIATED

Unedited CRA Tags
245 69(11)

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 Tax Foundation
1996 Annual Conference
Revenue Canada Forum
November 27, 1996

Loss Consolidation within a Corporate Group - Related or Affiliated?

27 November 1996 CTF Roundtable Q. 1, 9637410 - BACKDOOR BUTTERFLY - DETERMINABLE PRIMARILY BY REFERENCE

Unedited CRA Tags
88(1)(c.3)

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 Tax Foundation
1996 Annual Conference
Revenue Canada Forum
November 27, 1996

The Backdoor Butterfly Rule - Paragraph 88(1)(c.3)

Technical Interpretation - Internal

30 January 1997 Internal T.I. 964070A - DEDUCTION RRSP - JUDGES

Unedited CRA Tags
146 REG 8309

Principal Issues:

Deduction of RRSP - Judges

Position:

Application of the Act and 1996 Budget

Reasons: N/A

19 December 1996 Internal T.I. 9633137 - XXXXXXXXXX DOWNSIZING PROGRAM

Unedited CRA Tags
REG 8505 56(1)(a)(ii) 56(1)(a)(i)

Principal Issues:

Whether amounts paid on downsizing to enhance pension benefits are taxable to employees.

Position:

No

Reasons:

17 December 1996 Internal T.I. 9633196 - AMT ADJ RQRD IN A LOSS YR & YR OF APPLIC OF THAT LOSS

Unedited CRA Tags
127.52

Principal Issues:

minimum tax implications on both a loss year and the year to which the loss is applied

Position:

when an individual's loss from a business or property causes the individual to have a non-capital loss for the year and that loss is deemed to be nil for minimum tax purposes, the individual only needs to add back that portion of the loss which was used to reduce taxable income to nil for that year in calculating the AMT liability for that year (see line 35 of T691 REV 95 or line 33 of T691 Rev 96). When calculating the revised AMT liability for the year in which the loss is applied, the non-capital loss is recomputed as if that particular loss was nil (according to the amt assmptions) so that a minimum tax liability for the year of the loss application may also arise

Reasons:

17 December 1996 Internal T.I. 9625727 - REMARRIAGE CLAUSE & DEF'N OF SPOUSAL TRUST

Unedited CRA Tags
70(6) 248(9.1) 104(4) 70(9)

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.

December 17, 1996

Vancouver Tax Services Office Trusts Section
433-21 L. Holloway
(613) 957-2104
Attention: Stan Gingrich
962572

Remarriage Clause

3 December 1996 Internal T.I. 9637406 - SURPLUS USED TO ENHANCE PENSION BENEFITS

Unedited CRA Tags
REG 8503(15) 56(1)(a)(i)

Principal Issues:

Whether there can be an "employer contribution" or employee entitlement under 8503(15) where there is a surplus-sharing agreement subject to Ontario regulatory or court approval.

Position:

Usually in Ontario there will be no "employer contribution" or an amount to which the employee is entitled so 8503(15) will not apply.

Reasons:

6 November 1996 Internal T.I. 9632037 - CLERGY RESIDENCE DEDUCTION 8(1)(C) OF THE ACT

Unedited CRA Tags
8(1)(c)

Principal Issues:

Whether or not the taxpayer is entitled to a deduction under paragraph 8(1)(c) of the Act (clergyman' deduction)

Position:

Doubtful but further information should be obtained and reviewed by the Tax Centre.

Reasons:

3 October 1996 Internal T.I. 9523657 F - REGLES DE CAPITALISATION PAR NON-RÉSIDENT

Unedited CRA Tags
18(4)

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.

3 October 1996 Internal T.I. 9630097 F - ALLOCATION RETRAITE

Unedited CRA Tags
60(j.1)(ii)(b)

Principales Questions:

Quand les cotisations de l'employeur sont-elles acquises pour le calcul du montant de l'allocation de retraite transférable dans un REER

Position Adoptée:

11 September 1996 Internal T.I. 9620657 - MANUFACTURING AND PROCESSING, GOODS FOR SALE OR LEASE

Unedited CRA Tags
125.1(3)

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.

September 11, 1996

XXXXXXXXXX TAX SERVICES OFFICE HEADQUARTERS
Resource Industries Section
Attention: XXXXXXXXXX Denise Dalphy
Technical Advisor (613) 957-9231
Audit Services

962065
Manufacturing or Processing of Goods for Sale or Lease

30 August 1996 Internal T.I. 9625487 - DEATH BENEFIT PAID IN ERROR

Unedited CRA Tags
248(1) 146

Principal Issues: Treatment of amount paid in error.

Position: Outline of options.

Reasons: General analysis of facts.

19 July 1996 Internal T.I. 9619137 - XXXXXXXXXX PHANTOM STOCK PLAN

Unedited CRA Tags
6(11) 248(1)(k)

Principal Issues:

Whether amount under incentive plan is taxable in year bonus determined or in year amount received; whether it is employment income or disposition of capital property.

Position:

The plan may be an SDA and taxable in year bonus awarded. If it is an SDA, a bonus paid within 3 years is exempted. Whether taxable in year right arose or as bonus when paid within 3 years it is employment income, not capital property.

Reasons:

Ministerial Letter

15 November 1996 Ministerial Letter 9624938 - AUDITOR GENERAL'S REPORT ON FAMILY TRUSTS

Unedited CRA Tags
104(1) 115

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.

MINISTER/DM'S OFFICE 96-03966M, 96-04870M, 96-05037M, and
ADM'S OFFICE 96-1013D

RETURN TO RULINGS, 15TH FLOOR, 25 NICHOLAS ST.

PENDING

November 15, 1996

XXXXXXXXXX

Dear XXXXXXXXXX: