Income Tax Severed Letters - 1999-04-30

Ruling

1999 Ruling 9902383 - REORGANIZATION

Unedited CRA Tags
55(3)(a)

Principal Issues: no contentious issues

Position:

Reasons:

1999 Ruling 9814003 F - UNDIVIDED INTEREST-NET VALUE-1 WING BUTTERFLY

Unedited CRA Tags
55(3)(b) 55(3.1) 129(6) 129(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
XXXXXXXXXX 3-981400
XXXXXXXXXX

À l’attention de XXXXXXXXXX

Le XXXXXXXXXX 1999

Monsieur

Objet : Demande de décisions anticipées
XXXXXXXXXX

1998 Ruling 9825343 - FOREIGN AFFILIATE REORGANIZATION

Unedited CRA Tags
85.1(3) 85.1(4) 93(1) 55(3)(a) 55(3.01)(e)

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
XXXXXXXXXX 982534
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling

1997 Ruling 9641573 - PROPRIETARY RIGHTS OF A MEMBER OF A MUTUAL INSURER

Unedited CRA Tags
54 52(1)

Principal Issues:

1. Are the proprietary (or membership) rights obtained by policyholders at the time they acquired an insurance policy capital property?
2. If the proprietary rights are capital property, are they also personal-use property?

Position:

1. The proprietary rights will be considered to be capital property which in all probability have an adjusted cost base of nil.
2. The proprietary rights are not personal-use property.

Reasons:

Technical Interpretation - External

28 April 1999 External T.I. 9910985 - OETC - PERSONAL SERVICES CORPORATION

Unedited CRA Tags
122.3(1.1)(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.

XXXXXXXXXX 							991098
T. Harris
April 28, 1999

Dear Sirs:

Re: Overseas Employment Tax Credit

Your letter of April 1, 1999 requesting an opinion with respect to the Overseas Employment Tax Credit (the "OETC") has been forwarded to this Directorate for reply.

28 April 1999 External T.I. 9907285 - BUYING A CONDO IN THE USA

Unedited CRA Tags
9(1) 38(1)

Principal Issues: Tax Implications to Canadian resident buying a Condo in the USA ?

Position: General comment - Pamphlet "Canadian Residents Going Down South"

Reasons: General request

26 April 1999 External T.I. 9907115 - MEDICAL EXPENSES

Unedited CRA Tags
118.2(2)(a)

Principal Issues: Are various services provided by a doctor medical services?
Is tooth bleaching by a dentist eligible as a medical expense?

Position: The services provided are likely medical services.
Yes

Reasons: We have previously conceded that an amount paid to a medical practitioner for surgery of any kind, whether cosmetic or elective generally qualifies as a medical expense.
Tooth bleaching is a dental service and if the fee for such a service is paid to a dentist, it would qualify as a medical expense

26 April 1999 External T.I. 9830255 - GIFTS BY WILL

Unedited CRA Tags
118.1(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.

PRINCIPAL ISSUE:

Whether gifts of paintings to specific charities named in the deceased taxpayer’s will, could be claimed in the deceased income tax return where the trustee has the discretion to decide which painting should be given to each named charity.

Position TAKEN:

26 April 1999 External T.I. 9902445 - PERSONAL INVESTMENT PORTFOLIO PLAN

Unedited CRA Tags
148 12.2 233.3 reg 306

Principal Issues: Whether or not a personal investment portfolio plan constitutes a life insurance policy for purposes of the Act.

Position: This determination can only be made in the course of a formal review of this product in the context of an advance income tax ruling requested or a review by a TSO.

Reasons: It is a question of law.

23 April 1999 External T.I. 9902775 - EXEMPT INDIAN BAND CORPORATIONS

Unedited CRA Tags
149(1)(d.5)

Principal Issues:

Whether a corporation owned by an Indian band qualifies for the exemption under paragraph 149(1)(d.5).

Position:

For the corporation to qualify for the exemption under paragraph 149(1)(d.5), the Indian band must qualify as a municipality in Canada and the income of the corporation for a particular period from activities carried on outside the geographical boundaries of the municipality cannot exceed 10% of its income for the period. Since this is a factual determination, we have provided only general comments due to insufficient information.

Reasons:

23 April 1999 External T.I. 9908935 - DIVIDENDS RECEIVED FROM MICS

Unedited CRA Tags
130.1(2)

Principal Issues:
Whether taxable dividends received from a mortgage investment corporation that are deemed to have been received as interest by virtue of subsection 130.1(2) are included in the shareholder’s income in the year of receipt.

Position:
Yes.

Reasons:
Wording of subsection 130.1(2).

23 April 1999 External T.I. 9901875 - LIFE INSURANCE HELD AS COLLATERAL

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

Principal Issues:
Is a taxpayer/policyholder entitled pursuant to paragraph 20(1)(e.2) of the Act to deduct as premiums in respect of a life insurance policy used as collateral for a loan amounts made as withdrawals from the investment account of a universal policy which are used to cover costs of insurance and certain policy fees?

Position: No.

Reasons:
For the purposes of paragraph 20(1)(e.2) of the Act the premium payable by a taxpayer under a life insurance policy in respect of the year is the amount paid by the policyholder to the insurer in the year. Amounts transferred from the investment account to cover costs of insurance and policy fees do not constitute premiums and are therefore not relevant for the purposes of paragraph 20(1)(e.2) of the Act.

23 April 1999 External T.I. 9907135 - INCOME AND EXPENSES

Unedited CRA Tags
9

Principal Issues: whether a particular activity is a business

Position: Depends on the facts

Reasons: Examination of the facts will determine if there is a reasonable expectation of profit

23 April 1999 External T.I. 9832295 - RPP, REGISTERED INVESTMENTS, SEGREGATED FUNDS

Unedited CRA Tags
8502(h)

Principal Issues: On what basis is a segregated fund a qualified investment for a deferred income plan?

Position: Question of fact.

Reasons: Segregated funds are not specifically addressed in the Act - they must qualify as annuities or annuity contracts.

22 April 1999 External T.I. 9823525 F - RISTOURNE D'ASSURANCE-EMPLOI

Unedited CRA Tags
69(1) 6(1)(a) 6(1)(a)(v)

Principales Questions:

22 April 1999 External T.I. 9904925 - PENALTY FOR MISREPRESENTATION BY 3RD PARTY

Principal Issues: Application of civil penalty for misrepresentations of tax matters by third parties.

Position: Unable to comment.

Reasons: Detailed legislation not yet available.

21 April 1999 External T.I. 9900795 - CANADA-US INCOME TAX CONVENTION

Unedited CRA Tags
110.1

Principal Issues:
1. How to qualify as a charity under paragraph 6 of article XXI of the Canada-US Treaty
2. Whether all exempt entities under 501(c)(3) of the Code qualify under para. 6 of article XXI

Position:
1. Provide evidence of exemption under 501(c)(3) of the Code.
2. Yes

Reasons:
1. Charities Newsletter of 1996 publicized their administrative position re para.6 of article XXI
2. per Susan Mott of Charities.

21 April 1999 External T.I. 9810055 - FOREIGN AFFILIATES- DEEMED ABI

Unedited CRA Tags
95(2)(a)(ii)

Principal Issues: Treatment under the Act of an income transfer payment made in accordance with Swedish Tax Law by a subsidiary foreign affiliate to its parent foreign affiliate.

Position: In the circumstances set out in the opinion it would be reasonable to view the payment as income from property to the parent foreign affiliate which, pursuant to 95(2)(a)(ii) would be included in its income from active business.

Reasons: The payment is attributable to the shares of the subsidiary foreign affiliate held by the parent foreign affiliate and is deductible in computing income from an active business carried on by the subsidiary affiliate in Sweden.

21 April 1999 External T.I. 9902395 F - FRAIS ORDINATEUR FOURNI PAR ÉTABLISSEMENT

Unedited CRA Tags
118.5(1)

Principales Questions:
Est-ce que les frais technologiques qui doivent être versés par tous les étudiants d’un programme afin qu’un ordinateur portatif et des logiciels soient mis à leur disposition par l’établissement d’enseignement sont des frais de scolarité admissibles pour les fins du calcul du crédit d’impôt pour frais de scolarité au paragraphe 118.5(1) de la Loi ?

Position Adoptée:
Oui.

20 April 1999 External T.I. 9824625 F - FRAIS DE SCOLARITÉ

Unedited CRA Tags
118.5(1)a)

Principales Questions:

19 April 1999 External T.I. 9906895 - PLACER MINING - CEE

Unedited CRA Tags
66.1(6)

Principal Issues: i) Does the document “Guidelines on the Taxation of Placer Miners” dated January 7, 1992 and issued by the Audit Directorate of Revenue Canada still have application?

ii) Do any other guidelines currently exist with regard to placer mining which delineate between expenses qualifying under paragraphs (f) and (g) of the CEE definition?

Position: i) Yes.
ii) No.

Reasons: As confirmed through informal discussions with the mining Industry Specialist in the Verification, Enforcement and Compliance Research Branch. Also due to the question of fact nature of the determination as to the satisfaction of the respective purpose tests contained in the above paragraphs of the CEE definition.

19 April 1999 External T.I. 9903715 - LOSS ON FUNDS -NO REASONABLE RATE OF INTEREST

Unedited CRA Tags
40(2)(g)(ii)

Principal Issues: Is a non-arm's length relationship required to avail oneself of the administrative position in paragraph 6 of IT-239R2

Position: IT 239R2 discusses non-arm’s length relationships - arm’s length transactions should look to the business purpose of the transaction itself.

Reasons: capital loss allowable where certain conditions are met

19 April 1999 External T.I. 9826925 - PENSION CORPORATION CONDITIONS

Unedited CRA Tags
149(1)(o.2)

Principal Issues:
Various general questions relating to conditions that have to be met in order to qualify as a pension corporation in paragraph 149(1)(o.2) of the Act?

Position: The conditions are clear.

Reasons:
No exceptions regarding requirements in Pension Benefits Standards Act, 1985 or a similar law of a province.

19 April 1999 External T.I. 9900675 F - DÉCRET DE REMISE- TEMPÊTE VERGLAS

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

Principales Questions:

Est-ce qu’on maintient notre position (F9807525) à l’effet qu’un montant versé par un employeur à ses employés à titre d'aide humanitaire pour une semaine de salaire incomplète en raison de la tempête de verglas en janvier 1998 est un revenu d’emploi imposable en vertu du paragraphe 5(1) et de l’alinéa 6(1)a) de la Loi ?

Position Adoptée:

16 April 1999 External T.I. 9900165 - RRSP WITHDRAWALS BY YUKON INDIAN

Unedited CRA Tags
81(1)(a)

Principal Issues: The tax treatment of RRSP withdrawals by a Yukon Indian whose income which was subject to a remission order which expired on December 31, 1998.

Position: Withdrawals made after December 31, 1998, are taxable. Withdrawals made before January 1, 1999, will usually be subject to the Remission Order to the extent that the withdrawal relates to income that was subject to the Remission Order.

Reasons: As of January 1, 1999, there is no longer any statutory basis to forgive the taxes earned by these Yukon Indians.

16 April 1999 External T.I. 9640475 - EMIGRATION

Unedited CRA Tags
128.1(4) 119 40(3.7)

Principal Issues:
(1) Whether 128.1(4)(b)applies to salary receivable? (2) Whether 128.1(4)(d) applies to dividend declared but not paid where the ex-dividend date is prior to the time the individual cease to be resident? (3) Whether the taxpayer can carry-back capital loss where corp is wound up after departure?

Position:
(1) Yes (2) Yes (3) Yes

Reasons:
(1) Salary receivable is property (2) Such dividend is property (3) 111(9)

15 April 1999 External T.I. 9907125 - MAPLE LEAF GOLD COIN

Unedited CRA Tags
9

Principal Issues: Is a maple leaf gold coin necessarily a listed personal property?

Position: No

Reasons: It is a question of fact as to whether a coin or any other property is a listed personal property. Gold coins are likely to be commodity purchases.

15 April 1999 External T.I. 9907845 - COTTAGE, HOME BUYERS PLAN

Unedited CRA Tags
146.01

Principal Issues: Can a house built on cottage property using the shell of a cottage as its base qualify as a housing unit under the home buyers plan?

Position: If all conditions are satisfied, yes.

Reasons: All of the conditions in section 146.01 have to be satisfied in order to qualify.

14 April 1999 External T.I. 9821265 - QUALIFED FARM PROPERTY

Unedited CRA Tags
110.6

Principal Issues: Does 110.6(1)(a)(vi)(B) require property to be owned by individual in 110.6(1)(a)(i) to (v) during period of use?

Position: No

Reasons: Not required by wording as is in clause (A).

14 April 1999 External T.I. 9903735 - INDIAN - GUIDELINE 4

Unedited CRA Tags
81(1)(a)

Principal Issues:
Tax treatment of employment income of a status Indian.

14 April 1999 External T.I. 9904725 - TAXATION OF INDIANS

Unedited CRA Tags
81

Principal Issues: Various questions on investment income for Indians

Position: na

Reasons: na

7 April 1999 External T.I. 9900525 - SPLIT DOLLAR /UNIVERSAL LIFE INSURANCE

Unedited CRA Tags
6(1)(a)

Principal Issues:

The determination of a taxable benefit pursuant to paragraph 6(1)(a) when dealing with a universal life insurance policy for purposes of split dollar arrangements.

Position:

We are unable to provide a general position with respect to the determination of a taxable benefit pursuant to paragraph 6(1)(a). It is to be determined on a case by case basis.

Reasons:

7 April 1999 External T.I. 9832915 - DEEMED DISPOSITIONS

Unedited CRA Tags
70(5) 70(6) 38(1)

Principal Issues: Reason for deemed disposition concept under 70(5)

Position: FMV transfer and ACB adjustment to transferee

Reasons: Rules of 70(5)

6 April 1999 External T.I. 9907085 - PART-TIME EDUCATION CREDIT

Unedited CRA Tags
118.6

Principal Issues: (a) Paragraph (b) of B within the formula set out in proposed subsection 118.6(2) states that "$60 is multiplied by the number of months in the year ... each of which is a month during which the individual is enrolled at a designated education institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month in the program." Does a month with respect to the 12 hour test mean a calendar month?
What functions are to be taken into account in determining whether the 12 hour test has been met in a particular month?

Position: (a) yes
(b) The functions would generally include all forms of direct instruction such as lectures, practical training or laboratory work. When the program of a student falls short of providing 12 hours per month of direct instruction, the student's time may be augmented by a reasonable estimate of time outside the classroom or laboratory, normally required and expected of a student during a particular program, for work assignments or other items set out in paragraph 11(a) to (f) of IT-515R2.

Reasons: (a) refer to the comments in 982792.
(b) The Department of Finance has indicated to us that the position is consistent with the intent of the part-time education credit.

1 April 1999 External T.I. 9906565 - SPECIAL WORK SITE

Unedited CRA Tags
6(6)

Principal Issues: Correction of prior opinion # 982328 stating subsection 6(6) doesn't exempt employment in a temporary position by an employer in a distant location.

Position: Subsection 6(6) may apply in a situation where a taxpayer is hired to a temporary position by an employer in a distant location.

Reasons: Wording of the subsection allows such employment.

31 March 1999 External T.I. 9828805 - CHILD SUPPORT - LEGAL FEES

Unedited CRA Tags
18(1)(a)

Principal Issues: Are legal fees deductible when they are incurred in connection with the issuance of a child support order under the Divorce Act?

Position: Yes

Reasons: See a detailed discussion of this issue in file # 983147

26 February 1999 External T.I. 9902295 - CCA-COMPUTER HARDWARE/SOFTWARE

Unedited CRA Tags
class 10 class 8 class 1

Principal Issues: The proper CCA classification of computer hardware and software and electrical generating equipment..

Position: Question of fact.

Reasons: The type of property and the use of the property will be relevant in the determination of the appropriate class.

15 February 1999 External T.I. 9817845 - DISCRETIONARY TRUST, DESIGNATED BENEFIT

Unedited CRA Tags
146.3

Principal Issues: Could an amount still qualify as a designated benefit where a discretionary trust for the benefit of a financially dependent mentally infirm adult child is the beneficiary of the RRIF on the death of the last annuitant?

Position: No.

Reasons: Subsection 146.3(6.11) refers specifically to a “child or grandchild of the annuitant” so a discretionary trust will not qualify.

11 February 1999 External T.I. 9808185 - SECTION 34.2 RESERVE34.2

Unedited CRA Tags
34.1 249.1(4) 98.1

Principal Issues:
Cessation of a partnership by an individual who joined another partnership in the year. Application of 34.1(1) and (2) re additional income inclusion and continuation of a deduction of the reserve under 34.2(4) where the new business is a substituted business for the purposes of 34.2(3).

Position:
General comments provided setting out the application of 34.1(1) and (2), the availability of the reserve under 34.2(4) and the continuation thereof where 34.2(3) applies and also the requirement to have a deemed December 31, 1995 income under 34.1(4) or (5) for such purpose.

Reasons:
Situation appears to be a completed transaction. Hence, response limited to general comments as above.

17 September 1998 External T.I. 9823695 - EMPLOYER CONTRIBUTION - VESTED

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

Principal Issues: Whether extra $1500 is available for member of pension plan for years where no contribution was made by the employer.

Position: No

Reasons: Benefits for those years are funded in some way (surplus or future contributions) which includes employer contributions.

Conference

26 June 1998 ICAA Roundtable Q. 8, 9815200 - ICAA/REVENEU CANADA ROUNDTABLE - Q8

Unedited CRA Tags
60(j.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.

ICAA/Revenue Canada Roundtable

QUESTION #8

Question #8

Technical Interpretation - Internal

28 April 1999 Internal T.I. 9906217 - BURSARIES

Unedited CRA Tags
56(1)(n)

Principal Issues:
A private school (the “School”), that charges tuition fees, offers primary and secondary education to its students. If a student’s parent(s) is unable to pay the full tuition fee, the School provides financial assistance by providing a discount in respect of the normal tuition fee that has been charged. The issue is the tax treatment of the financial assistance (i.e., the discount).

Position:
The financial assistance is taxable in the hands of the student under paragraph 56(1)(n) of the Income Tax Act (the “Act”).

27 April 1999 Internal T.I. 9906527 - ICE STORM RELIEF

Unedited CRA Tags
13(1) 9(1) 12(1)(x)

Principal Issues:
1)Is a payment received from the Ice Storm relief for replacement of fencing on a farm operation taxable ?
2) Is compensation received from the Ice Storm relief for damages to trees in a sugar bush taxable?

Position:
1) Proceeds of disposition
2) Yes- amount is taxable if recipient in business

Reasons:
1) 13(21), 13(1)
2) 9 - Business Operation

26 April 1999 Internal T.I. 9906917 - APPLICATION OF 6(1)(B)(IX)

Unedited CRA Tags
6

Principal Issues: Allowance to employees for cost of children's education

Position: Not exempt per 6(1)(b)(ix)

Reasons: Employees were not transferred as part of their job.

20 April 1999 Internal T.I. 9910097 F - CONTENU ÉTRANGER - REER

Unedited CRA Tags
206(2) 39(5) 5100(2) 6700

Principales Questions:
1. Est-ce qu’une action du Fonds de solidarité des travailleurs du Québec constitue un placement à titre de petite entreprise qui permet d’augmenter le contenu étranger d’un REER?

20 April 1999 Internal T.I. 9902707 - CHILD SUPPORT PAYMENTS

Unedited CRA Tags
252(1)(b) 60(b) 56(1)(b)

Principal Issues:
As a result of a marital breakdown that occurred some time prior to XXXXXXXXXX , Individual A was living separate and apart from Individual B. Individual A, who lives in XXXXXXXXXX , and Individual B, who lives in Ontario, are the natural parents of a child (the “Child”). The Child was removed from Individual B’s home in XXXXXXXXXX due to emotional and physical abuse. In XXXXXXXXXX , the Court granted custody of the Child to Individual A and Individual C (Individual C is Individual A’s sister who lives in Ontario) and the Court granted daily care and control of the Child to Individual C. Individual A paid maintenance to Individual C. In order for the maintenance to be deductible under paragraph 60(b) of the Act, the Child must be regarded as being the “child” of Individual C pursuant to paragraph 252(1)(b) of the Act. Can this requirement be considered to have been satisfied?

Position: Yes

Reasons:
Under paragraph 252(1)(b) of the Act, a child of a taxpayer includes an individual who is wholly dependent upon the taxpayer for support and is under the custody and control, in law or in fact, of the taxpayer. The facts of the case indicated that Child could be considered to be a “child” of Individual C during the time that maintenance payments were being made to her.

20 April 1999 Internal T.I. 9907197 - INVESTMENT TAX CREDIT - CARRYOVER ON WIND-UP

Unedited CRA Tags
88(1)(e.3) 88(1.3) 127(9) 87(2)(qq)

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.

		April 20, 1999	
	Halifax Tax Services Office 	HEADQUARTERS
T. Harris
	Attention: Len Moore	(613) 957-2114
			7-990719

XXXXXXXXXX - Investment Tax Credit

13 April 1999 Internal T.I. 9906457 - CONTRACT EXPENSE PAID TO A SPOUSE PARTNER

Unedited CRA Tags
18(1)(a)

Principal Issues:
Whether or not a payment described as a contract expense made by the wife partner to her husband partner qualifies as a deduction in computing the wife’s income from the partnership business.

Position: No.

Reasons:
There is no basis in the legislation to permit such a payment to be deductible.

13 April 1999 Internal T.I. 9905747 - CAREGIVER TAX CREDIT

Unedited CRA Tags
118(1)(c.1)

Principal Issues:
The spouse of an individual (“Individual A”) wishes to claim the caregiver tax credit under proposed paragraph 118(1)(c.1) of the Act in respect of Individual A’s foster parent. The foster parent received social assistance in respect of Individual A from a provincial agency or the province of Newfoundland until Individual A reached the age of 19. In order for the spouse to be entitled to claim the credit, Individual A must have been the foster parent’s child pursuant to paragraph 252(1)(b) of the Act. This provision refers to a person who is wholly dependent on an individual for support and under the individual’s custody and control in law or in fact or was so immediately before such person reached the age of 19. Can Individual A be regarded as having been the foster parent’s child?

Position: No

Reasons:
The “wholly dependent” test and, arguably, the “custody and control” test have not been satisfied as the foster parent received social assistance payments from a provincial agency or the government of Newfoundland which was ultimately responsible for the care of the child.

13 April 1999 Internal T.I. 9905867 - CAREGIVER TAX CREDIT

Unedited CRA Tags
118(1)(c.1)

Principal Issues: Two parents (“Parent A” and “Parent B”), who are both over the age of 65, reside at the residence of their son (“Individual A”)and daughter-in-law. Parent B claims a credit under paragraph 118(1)(a) of the Act in respect of Parent A. In order for Individual A to be entitled to claim a credit under proposed paragraph 118(1)(c.1) of the Act in respect of Parent A, is it necessary that Individual A provide support to Parent A?

Position: No

Reasons: It is not a requirement within the Act that needs to be satisfied.

16 March 1999 Internal T.I. 9905317 - WHETHER YEAR STATUTE BARRED; 149(10)

Unedited CRA Tags
149(10) 152(4)

Principal Issues: (1) The effective date of subsection 149(10). (2) Whether we can assess a taxpayer for a taxation year that was not reported but the period of which was included in a taxation year that has been assessed and is statute barred.

Position: (1) Subsection 149(10) applies at the time a corporation becomes exempt or ceases to be exempt. (2) No.

Reasons: (1) Based on the Income Tax Act. (2) In our view, based on the purposive approach now used by the Courts to interpret income tax legislation, the fact that a deemed taxation year-end under 149(10) was overlooked would not, in and of itself, allow the Department to step outside the limitation periods for (re)assessing under 152(4). However, in such situations, consideration should be given to assessing under 152(4)(a)(i), i.e., because there has been misrepresentation attributable to neglect or carelessness.

5 February 1999 Internal T.I. 9826537 F - EXPRESSION CHANTIER PARTICULIER 6(6)

Unedited CRA Tags
6(6)a)(i)

Principales Questions:
Est-ce que le sens de l'expression "chantier particulier" au sous-alinéa 6(6)a)(i) de la Loi doit être limité à un chantier de construction tel que décidé dans l'affaire Guilbert c. MRN, 91 DTC 74 (CCI)?

Position Adoptée:
Non.

13 January 1999 Internal T.I. 9822747 F - EQUIVALENT DU MONTANT POUR CONJOINT

Unedited CRA Tags
118(1)b) 118(5) 118(4)b)

Principales Questions:
Pour les années 1993 à 1996, est-il possible pour un particulier payeur de pension alimentaire de réclamer le crédit de l'équivalent de montant pour conjoint pour un enfant, dans l'année de la séparation.

Position Adoptée:
Si le payeur n'a pas la garde de l'enfant, il ne rencontre pas les critères de 118(1)b) et ne pourra bénéficier de ce crédit.
Si le payeur a la garde de l'enfant, en considérant les faits, il est possible que 118(1)b) puisse s'appliquer dans le calcul de l'impôt du payeur.

Ministerial Letter

23 April 1999 Ministerial Letter 9907008 - DEFINITION OF SPOUSE

Unedited CRA Tags
248

Principal Issues: Definition of spouse

Position: Except for RPPs, restricted to oppositte sex.

Reasons: Rosenberg changed for pension only

21 April 1999 Ministerial Letter 9M18958 - RETROACTIVE LUMP SUM PROCESSING

Unedited CRA Tags
120.4 110.2

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.

XXXXXXXXXX

Dear XXXXXXXXXX:

I am writing in reply to your request for information concerning the Department’s proposed administration of the legislation announced in the February 16, 1999 Budget concerning retroactive lump sum payments.

21 April 1999 Ministerial Letter 9904358 - TAXPAYER MIGRATION -XXXXXXXXXX

Unedited CRA Tags
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.

XXXXXXXXXX

Dear XXXXXXXXXX:

The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to reply to your letter of January 24, 1999, concerning comments you heard on a radio station on the taxation of property when the owner leaves Canada.

20 April 1999 Ministerial Letter 9905088 - TAXABLE BENEFIT - STANDBY CHARGE

Unedited CRA Tags
6(1)(e) 6(1)(a) 6(1)(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.

XXXXXXXXXX

Dear XXXXXXXXXX:

The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to reply to your letter of February 2, 1999, concerning employee automobile benefits.

6 April 1999 Ministerial Letter 9907908 F - ORGANISATION OUVRIÈRE

Unedited CRA Tags
149(1)(k)

Principales Questions: Statut de XXXXXXXXXX

Position Adoptée: Visé à 149(1)(k)

26 February 1999 Ministerial Letter 9903518 - TAXABLE CANADIAN PROPERTY - EMIGRATION

Unedited CRA Tags
128.1(4)(b)

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

Dear XXXXXXXXXX:

The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to respond to a letter of February 3, 1999, from your Member of Parliament, XXXXXXXXXX, concerning the taxation of family trusts leaving Canada.

16 February 1999 Ministerial Letter 9830968 - FOREIGN PROPERTY - LIMITED PARTNERSHIP

Unedited CRA Tags
206(2) 5000(7) 5102(1)

Principal Issues: Whether units of XXXXXXXXXX are not foreign property.

Position: Do not know.

Reasons: We would need more information; however, we can provide general rules.