Income Tax Severed Letters - 1997-04-18

Ruling

30 November 1996 Ruling 9639843 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

30 November 1995 Ruling 9507423 F - REORG. POUR VERSER REV GAGNE

Unedited CRA Tags
55

Principales Questions:

30 November 1995 Ruling 9603063 F - Papillon-distribut. des biens lors d'une LIQUIDATION

Unedited CRA Tags
55(2) 55(3)(b) 88(2) 69(5)

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 3-960306

A l'attention de XXXXXXXXXX

XXXXXXXXXX 1996

Mesdames, Messieurs,

Objet: Demande de décisions anticipées
XXXXXXXXXX

30 November 1995 Ruling 9611353 F - REORGANISATION "SOMERSAULT"

Unedited CRA Tags
55(3)(a)

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							3-961135
XXXXXXXXXX

A l'attention de XXXXXXXXXX

Le XXXXXXXXXX 1996,

Mesdames, Messieurs,

Objet: Demande de décisions anticipées en matière d'impôt sur le revenu
XXXXXXXXXX

30 November 1995 Ruling 9617483 F - ACTIONS CONVERTIBLES - CONJOINTS

Unedited CRA Tags
110.6(8) 245(2)

Position Adoptée:

Technical Interpretation - External

25 March 1997 External T.I. 9700965 - AFTER DEATH OF PARENT CHILD-IN-LAW NO LNGER CHILD OF TP

Unedited CRA Tags
252(1)(c) 70(9.2)

Principal Issues:

whether the child of a spouse of a taxpayer continues to be the child of the taxpayer after the death of the spouse if 252(1)(c) is the only reason by which the child would be a child of the taxpayer

Position:

no

Reasons:

21 March 1997 External T.I. 9706705 - VERTICAL AMALGAMATION - COST BUMP

Unedited CRA Tags
87(11)(b) 88(1)(c.3) 88(1)(c)(vi)(B)(I) 88(1)(c.2)

Principal Issues:

how the Department will interpret proposed subsection 87(11)

Position:

to determine amount of bump under 87(11) it will be necessary to determine the bump that would have been available under similar circumstances if a winding-up under 88(1) had been done

Reasons:

20 March 1997 External T.I. 9701545 F - PLACEMENTS ADMISSIBLES

Unedited CRA Tags
204

Principales Questions:

Est-ce que les actions d'une société ayant acquis celles d'une autre société sont la continuité des actions acquises afin d'être des placements admissibles d'un RPDB?

Position Adoptée:

18 March 1997 External T.I. 9629545 F - RÉSIDENCE PRINCIPALE - TERRAIN, RÉSIDENCE DÉTRUITE

Unedited CRA Tags
40(2)b) 54

Principales Questions:

Est-ce que le gain réalisé lors de la disposition d'un terrain sur lequel la résidence principale du contribuable a été construite et qui, par la suite, a été détruite par le feu serait admissible à l'exemption pour résidence principale en vertu de l'alinéa 40(2)b) de la Loi?

Position Adoptée:

17 March 1997 External T.I. 9705605 - RRSP INVESTMENT IN SMALL BUSINESS

Unedited CRA Tags
REG 4900

Principal Issues:

How can RRSP invest in small business.

Position:

Standard reply sent to taxpayer as requested.

Reasons:

17 March 1997 External T.I. 9641585 - INDIAN - INVSETMENT INCOME

Unedited CRA Tags
81(1)(a)

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.

									964158
XXXXXXXXXX							B. Kerr

Attention: XXXXXXXXXX

March 17, 1997

Dear Sirs:

Re: Investment Income - Indians

17 March 1997 External T.I. 9706635 - RRSP INVESTMENT IN CCPC

Unedited CRA Tags
REG 4900

Principal Issues:

How can RRSP invest in small business.

Position:

Standard reply sent to taxpayer as requested.

Reasons:

14 March 1997 External T.I. 9701805 - EMPLOYMENT EXPENSES

Unedited CRA Tags
8(1)(i)(iii) 8(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.

		970180
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

March 14, 1997

Dear Sirs:

Re: Employment Expenses and Computers

14 March 1997 External T.I. 9627205 F - LOTS BOISÉS - BIENS AGRICOLES ADMISSIBLES

Unedited CRA Tags
110.6

Principales Questions:

Est-ce que des lots boisés acquis avant le 18 juin 1987 sont des biens agricoles admissibles

Position Adoptée:

14 March 1997 External T.I. 9704635 - ATTENDANT CARE

Unedited CRA Tags
118.2(2)(b) 118.2(2)(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.

		970463
XXXXXXXXXX		M. Eisner

Attention: XXXXXXXXXX

March 14, 1997

Dear Sirs:

Re: Medical Expense Tax Credit - Homecare

10 March 1997 External T.I. 9705915 - INDIANS - INVESTMENT INCOME

Unedited CRA Tags
81(1)(a)

Principal Issues:

Inaccuracies in statements attributed to a Revenue Canada spokesman.

Position:

The inaccuracies should be corrected by the publisher.

Reasons:

5 March 1997 External T.I. 9641395 - WAGE LOSS REPLACEMENT PLAN

Unedited CRA Tags
248(1)

Principal Issues:

Will the payment of an employee's personal expense in the form of a contribution to the employee's "employee-pay-all wage loss replacement plan" disqualify the employee-pay-all plan status.

Position:

No.

Reasons:

3 March 1997 External T.I. 9706235 - INTEREST ON PARTICIPATING LOANS

Unedited CRA Tags
20(1)(c)

Principal Issues:

Writer requested that we reconcile four court decisions dealing with the deductibility of interest expense and, in particular, participating interest: Redclay 96 DTC 1207, Barbican 96 2CTC 2615, Yonge-Eglinton 74 DTC 6180, Sherway Centre 96 DYC 1640.

Position:

Noted that, in order to be deductible as interest, the amount must satisfy the three criteria summarized in Miller 85 DTC 5354 and also the amount must be payable in respect of the year.

Reasons:

27 February 1997 External T.I. 9700155 - PAYMENT TO FORMER EMPLOYER

Unedited CRA Tags
8(2)

Principal Issues:

Whether a deduction is permitted for a payment to employer of part of the cost of training provided to the taxpayer as a result of the taxpayer leaving his employment within a certain period of having received the training.

Position:

Not deductible.

Reasons:

21 February 1997 External T.I. 9641075 - 248(1)

Principal Issues:

Whether benefits received from an employee-pay-all long term disability plan will become taxable if the employer pays the retail sales tax on the premiums.

Position:

No. Benefits will remain non-taxable.

Reasons:

20 February 1997 External T.I. 9641555 - HOUSING AND RENTAL SUBSIDY

Unedited CRA Tags
5(1) 56(1)(a)(ii) 6(1)(a) 6(1)(b)

Principal Issues:

Amounts paid to former employees to compensate for the reduction in the value of their homes as a result of XXXXXXXXXX

Position:

The amounts are taxable as employment income or as a retiring allowance.

Reasons:

20 February 1997 External T.I. 9641065 - LONG TERM DISABILITY PLAN

Unedited CRA Tags
6(1)(f)

Principal Issues:

Does the providing of a van or pick-up truck for the personal use of an employee or shareholder fall within the exclusion of subparagraph (e)(ii) of the definition of automobile in subsection 248(1)?

Position:

No

Reasons:

18 February 1997 External T.I. 9639905 - ALIMONY AND MAINTENANCE PAYMENTS

Unedited CRA Tags
60(b) 60.1(1) 56(12)

Principal Issues:

Payment made to a child. Whether deductible as alimony or maintenance.

Position:

Not deductible in this particular instance.

Reasons:

18 February 1997 External T.I. 9640195 - 70218

Unedited CRA Tags
8(1)

Principal Issues:

Whether amounts paid by members of a bargaining unit can be deductible as union dues.

Position:

Depends if they meet the definition of trade union.

Reasons:

18 February 1997 External T.I. 9640485 - WAGE LOSS REPLACEMENT PLANS

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

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.

		964048
XXXXXXXXXX	Jacques E. Grisé
(613) 957-2059

Attention: XXXXXXXXXX

February 18, 1997

Dear Sirs:

Re: Wage Loss Replacement Plans

17 February 1997 External T.I. 9640655 - LOAN TO A FUTURE SHAREHOLDER

Unedited CRA Tags
15(2)

Principal Issues:

Whether subsection 15(2) applies to a loan made to a future shareholder.

Position:

It does not apply.

Reasons:

10 February 1997 External T.I. 9639645 - DAMAGES AWARDED SUBSEQUENT TO DISMISSAL

Unedited CRA Tags
56(1)(a)(ii)

Principal Issues:

Whether payments for damages received from employer as a result of a discharge grievance is a retiring allowance.

Position:

It is a retiring allowance.

Reasons:

Conference

5 December 1996 TEI Roundtable, 9640070 - IT-233R

Unedited CRA Tags
212(1)(b)

Principal Issues:

Whether the recommendation to amend IT-233R to state that the position therein would apply for all purposes of the Act has been approved.

Position:

Recommendation referred to in the question has not yet been acted on.

Reasons:

Technical Interpretation - Internal

14 March 1997 Internal T.I. 9704747 - CPP AND DISABILITY PENSIONS

Unedited CRA Tags
120.3 56(8)

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.

12 March 1997 Internal T.I. 9637067 F - FRAIS DE GARDE D'ENFANT- CHILD CARE EXPENSE

Unedited CRA Tags
ART 63(3)

Principales Questions:

1)Des frais pour des ateliers éducatifs pour des enfants d'âge scolaire et des frais relatifs à des camps de jour, peuvent-ils être considérés comme "frais de garde d'enfants" telle que cette expression est définie au paragraphe 63(3) de la Loi de l'impôt sur le revenu?

2) En tenant compte de l'interprétation 5-942671, si les activités parascolaires ont un but récréatif et non éducatif, pourrait-on considérer les frais payés pour des activités parascolaires comme des frais de garde d'enfants?

Position Adoptée:

10 February 1997 Internal T.I. 9625377 F - FRAIS MÉDICAUX - SAGE-FEMME

Unedited CRA Tags
118.2(2) 118.4(2)

Position Adoptée:

10 January 1997 Internal T.I. 9641467 - PROPERTY OF A NON-RESIDENT INSURER

Unedited CRA Tags
116(6)(e) REG 810(1)(a)

Principal Issues:

Whether the reference to property in paragraph 810(1)(a) of the Regulations refers to any property of a qualified insurance corporation or to property which is PUBI.

Position:

The reference is to any property.

Reasons:

Ministerial Letter

7 January 1997 Ministerial Letter 9640018 - HERITAGE PROPERTY - TERMINAL LOSSES

Unedited CRA Tags
13(21.1)

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.

MINISTER/DEPUTY MINISTER'S OFFICE 96-08158M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER

January 7, 1997

XXXXXXXXXX

Dear XXXXXXXXXX: