Income Tax Severed Letters - 2001-09-28

Miscellaneous

2001 2001-0079491 - Pre Spin-off In-House Loss Transfer

Unedited CRA Tags
20(1)(c) 55(3)(b)

Principal Issues: In house-loss transfer before public company spin-off

Position: Acceptable

Reasons: Losses incurred while corporations affiliated

2001 2001-0087601 - XXXXXXXXXX supplemental ruling

Unedited CRA Tags
55(3)(a)

Principal Issues: Supplemental to 2000 - 005654. Change in facts.

Position: N/A

Reasons: N/A

2001 2001-0089511 - Split - Up Butterfly

Unedited CRA Tags
55(3)(b) 55(3.1)

Principal Issues:
The major issue is how to combine the assets of Jco, a CBCA company, with those of Kco, XXXXXXXXXX followed by a split-up butterfly to divide the assets between Mr. A and Mr. B, who each control 50% of the shares of Jco and Kco.

Position:
Jco is able to combine its property with Kco and then split-up Kco.

Reasons:
The transactions combining Jco and Kco's property qualified for exceptions under subsection 55(3.1), and the split-up qualifies for the subsection 55(3)(b) butterfly exception.

2001 2001-0098361 - Thin Capitalization - supplemental ruling

Unedited CRA Tags
18(4) 20(1)(c) 20(3)

Principal Issues: Switch of limited and general partners. Redefine debt owing to be equal to debt owing immediately prior to transactions.

Position: Ruling still binding.

Reasons: Switch in partners does not affect issues ruled on.

Ruling

2001 Ruling 2001-0082183 - PHANTOM STOCK PLAN (DIRECTORS)

Unedited CRA Tags
REG 6801(d)

Principal Issues:
Will the payment of director's fees in the form of deferred share units result in an SDA?

Position: No.

Reasons: 6801(d) is satisfied.

2001 Ruling 2001-0083853 F - REGIME D'ACTIONS FANTOMES

Unedited CRA Tags
248(1)

Principales Questions:
1. L'acquisition par un employeur d'actions pour se protéger de la variation de valeur de celles-ci et ayant pour but de couvrir son obligation dans le cadre d'un régime visé à l'alinéa 6801d) du Règlement constitue-elle une contribution à une convention de retraite ?

2. L'acquisition par une filiale des actions de sa société-mère est-elle permise XXXXXXXXXX

Position Adoptée:
1. Non
2. Oui

2001 Ruling 2001-0086313 - Transfer of Assets under 55(3)(a)

Unedited CRA Tags
55(3)(a)

Principal Issues: This is a transfer of assets among related companies under 55(3)(a). The purpose of the proposed transactions is primarily to transfer shares of XXXXXXXXXX (Tco) now held by Holdco to Subco, in order to apply capital losses or other available deductions against the capital gain that will be realized on the sale by Subco of some of its Tco shares in a secondary public offering. The purpose of the proposed PUC increase on the Tco shares is to decrease the capital gain that would otherwise be realized on the sale of such shares to the extent of Tco's safe income on hand in respect of the Tco shares held by Subco.

Position:
Paragraph 55(3)(a) applies to the dividends arising on the cross-redemptions.

Reasons:
All the taxpayers are related. The dispositions of the Tco shares on the public offering are at FMV and are not dispositions of shares of a dividend payor or recipient.

2001 Ruling 2000-0061053 - XXXXXXXXXX

Unedited CRA Tags
12(1)(c) 12(3) 12(9) 212(1)(b)(ii)(C)(I)

Position:
Favorable ruling given.

2001 Ruling 2001-0093663 F - APPLICATION DE RETRAITE ET CV

Unedited CRA Tags
60(j.1) 20(1)r) 56(1)x) 248(1)

Principales Questions:
1. L'allocation de retraite peut-elle être payée en versements inégaux sur une période maximale de 10 ans?
2. Un employé peut-il renoncer à l'indemnité de départ et l'employeur peut-il verser un montant équivalent dans une convention de retraite?

2001 Ruling 2000-0061413 F - BONIS EET

Unedited CRA Tags
248(1) 6(1)(g) 32.1 104(6)

Principales Questions: Est-ce que le régime proposé est un régime de prestations aux employés tel que défini au paragraphe 248(1) de la Loi?

Position Adoptée: Oui.

2001 Ruling 2001-0094763 - Class 43.1 - XXXXXXXXXX

Unedited CRA Tags
Class 43.1

Principal Issues: (a) Whether the proposed cogeneration facility will comprise a system (other than an enhanced combined cycle system) used to generate both electrical and heat energy using only fuel that is fossil fuel for the purposes of subparagraph (c)(i) of Class 43.1. (b) Whether the heat rate requirement under clause (c)(i)(B) of Class 43.1 in Schedule II of the Regulations would be met.

Position: (a) Yes.(b) Yes, however the heat rate requirement must also be met every year the facility is in operation unless subsection 1104(14) of the Regulations apply.

Reasons: (a) From the information provided, and provided the conditions of class 43.1(c)(i) are met, the facility (b) Based upon the opinion of Natural Resources Canada dated XXXXXXXXXX , the heat rate of the facility would be less than 6,000 BTU/kWh and therefore, the heat rate requirement under clause (c)(i)(B) of Class 43.1 in Schedule II of the Regulations would be considered as being met.

2001 Ruling 2001-0070563 - Butterfly Ruling

Unedited CRA Tags
55(3)(b)

Principal Issues:
1. Standard gross asset butterfly.

Position:
1. n/a

Reasons:
1. n/a

2001 Ruling 2001-0096333 F - RESIDENCE PRINCIPALE

Unedited CRA Tags
54 20(1)(z.1) 20(1)a)

Principales Questions:

Est-ce qu'une unité indivisible (en raison des statuts, des règlements de la société et du bail en propriété exclusive) qui est composée d'un bail en propriété et d'un nombre d'actions de la société détenant l'immeuble est considérée comme étant un logement aux fins de la définition de résidence principale de l'article 54 de la Loi?

Position Adoptée:

2001 Ruling 2001-0079463 - XXXXXXXXXX . - REPLACEMENT PROPERTY

Unedited CRA Tags
44(1) 13(4)

Principal Issues: Whether a foreign affiliate of a taxpayer resident in Canada is eligible for the replacement property rules in subsections 13(4) and 44(1) of the Income Tax Act?

Position: Yes.

Reasons: (i) The term "taxpayer" is defined in subsection 248(1) to include any person whether or not liable to pay tax; and (ii) a controlled foreign affiliate computes income under Part I of the Act for FAPI purposes and sections 3 and 9 of the Act refer to "income of a taxpayer".

Ministerial Correspondence

20 September 2001 Ministerial Correspondence 2001-0092714 - MEDICAL EXPENSES; DISABILITY

Unedited CRA Tags
118.2

Principal Issues: whether disabled person can claim food, hydro etc as deduction

Position: no

Reasons: no deduction in the Act, however 118.3 gives non-accountable tax credit to severely disabled persons

4 September 2001 Ministerial Correspondence 2001-0097274 - Taxation of Property on Leaving Canada

Unedited CRA Tags
248(1)

Principal Issues: Various questions concerning a ruling given on the transfer of assets outsite Canada & the related court case

Position: court case is currently on-going; references made to chronological events surrounding case

Reasons:

10 August 2001 Ministerial Correspondence 2001-0089334 - Trust Assessment Court Challenge

Unedited CRA Tags
248(1)

Position:
Referred to changes in the law enacted by Bill C-22 which ensure that all persons who leave Canada or transfer property from Canada will generally realize a deemed disposition.

Technical Interpretation - External

12 October 2001 External T.I. 2001-0078715 - QUALIFIED FARM PROPERTY

Unedited CRA Tags
110.6(1)

Principal Issues: Whether we should reconsider our position in letter #1999-0008385 to allow a 50% undivided interest (joint ownership or ownership in common) in farmland to be considered "principally" used in the separate business of farming of each co-owner of the land for the purposes of the definition of "qualified farm property" in subsection 110.6(1) of the Act, and the rollover under subsection 70(9) of the Act.

Position: No.

Reasons: Each co-owner uses only 50% of the farmland in each their own separate businesses while each co-owner's interest in the farmland allows for undivided seisin, concurrent possession, use and occupancy of the entirety of the farmland. Each co-owner holds the entirety concurrently and nothing separately. The undivided interest of each co-owner in such a situation cannot be considered "principally" used in the business of farming. The tax results that could be obtained by partitioning the farmland or through the use of a partnership cannot be allowed in this case unless legal arrangements are ignored. Recent decisions of the Supreme Court of Canada (Shell Canada Ltd, Continental Bank Leasing Corp, Singleton, etc.) are clear indication that, for tax purposes, legal relationships must be respected absent a sham.

12 October 2001 External T.I. 2001-0101835 - WRITING OF PUT OPTIONS OF REGISTERED PLANS

Unedited CRA Tags
146(1) 204 reg 4900

Principal Issues:
Is the writing of a put option by a registered plan (RRSP, RESP or RRIF) permissible?

Position:
Yes, however any margin may not be a qualified investment.

Reasons:
Cash that is legal tender is a qualified investment as per paragraph (a) of the def'n of "qualified investment" in section 204 of the Act. Margin left for any period of time would not be a deposit as defined in the CDIC Act.

11 October 2001 External T.I. 2001-0100245 F - POLICE EXEMPTEE ASSUREUR NON-RESIDENT

Unedited CRA Tags
12.2 REG 306

Position Adoptée:
Possible.

RAISON POUR POSITION ADOPTÉE:
Les tests à l'article 306 des Règlements peuvent être effectuées de façon rétrospective. Toutefois, notre compréhension est à l'effet que l'information requise pour faire cette détermination n'est généralement pas disponible ou même existante. En outre, cette détermination relève du titulaire de la police. (E9923905, E9917195, E9902445, E9406325 et E9310200)

XXXXXXXXXX 2001-010024
L. J. Roy, CGA
Le 11 octobre 2001

9 October 2001 External T.I. 2001-0096655 - Interest Exemption From Part XIII

Unedited CRA Tags
212(1)(b)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Subparagraph 212(1)(b)(vii)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b)
stock index link
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3) - Participating debt interest
acceptable to link to stock index that is not selected based on inclusion of the issuer or corporations with siimilar business

Principal Issues: 1) Will paragraph 212(1)(b) apply to the return on a debt obligation paid to a non-resident where the return is computed by reference to a stock index? 2) Will interest paid on a GIC with a five year maturity be exempt from Part XIII taxes under subparagraph 212(1)(b)(viii) of the Act?

Position: 1) No. 2) Question of Fact.

Reasons: 1) This type of return does not meet the postamble requirement in paragraph 212(1)(b). 2) This determination would require a review of the terms of the debt obligation. CCRA's general comments are provided in IT-361R3.

9 October 2001 External T.I. 2001-0094905 - CAPITAL PROPERTY

Unedited CRA Tags
14(1.01)

Principal Issues:
The application of subsection 14(1.01) of the Act in two hypothetical situations, which concern the expression "the cost of the property to the taxpayer can be determined."

Position:
General comments provided; where insufficient information is provided the Directorate is not inclined to provide an opinion on a recently enacted provision. We will, however, provide an advance income tax ruling if requested, providing all necessary information is disclosed. If the transactions are complete, the matter should be referred the relevant Tax Services Office, to whom we would provide assistance in reviewing the matter where requested.

Reasons: IC 70-6R4

4 October 2001 External T.I. 2001-0088785 - QUALIFIED INVESTMENT TIME-SHARE PURCHASE

Unedited CRA Tags
146(1) REG 4900

Principal Issues: Is a time-share purchase a qualified investment for RRSP purposes?

Position: No. Shares of a corporation that is in the business of selling time-shares may be a qualified investment but, if so, there may be other issues.

Reasons: A time-share is not listed as a qualified investment in subsection 146(1) or prescribed to be a qualified investment in regulation 4900 of the Act.

3 October 2001 External T.I. 2001-0091995 - phsp

Unedited CRA Tags
6(1)(A)

Principal Issues: Can a corporation reduce the employee wages by the corresponding amount the employee would be reimbursed for expenses under a PHSP?

Position: NO

Reasons: The requirement is that the PHSP be a plan of insurance requires an element of risk. Also, a legal obligation to pay a salary cannot be reduced by a reimbursement of qualifying medical expenses.

3 October 2001 External T.I. 2001-0083915 - CRYSTALLIZE GAINS ON CORPORATE MERGER

Unedited CRA Tags
48.1(1)(a)(ii) 87(2)

Principal Issues: Will the recent amendment to subparagraph 48.1(1)(a)(ii) of the Income Tax Act (the "Act") apply in a situation where a company ceases to be a small business corporation (SBC) as a result of an amalgamation with a public company whose shares are listed on a prescribed stock exchange in Canada.

Position: No

Reasons: No continuity of shares. Merged corporation does not become public because of the listing.

2 October 2001 External T.I. 2001-0100355 F - ALLOCATION DE RETRAITE ET REER

Unedited CRA Tags
146(5.1) 60j.1

Principales Questions: Le contribuable qui reçoit une allocation de retraite peut-il demander une déduction en vertu du paragraphe 146(5.1) et une autre déduction en vertu de l'alinéa 60j.1) de la Loi?

Position Adoptée: Oui, dans les limites permises par ces deux dispositions.

2 October 2001 External T.I. 2001-0102655 F - T5008 - AGENT DE L'ACHETEUR

Unedited CRA Tags
REG 230(2) 230(6)

Position Adoptée:
Non.

RAISON POUR POSITION ADOPTÉE:
Analyse législative

28 September 2001 External T.I. 2001-0097525 - Support Amounts Paid by Non-Resident

Unedited CRA Tags
56(1)(b)

Principal Issues: Does a person resident in Canada have to include support amounts received in his or her income if the payer is a non-resident that is not required to file an income tax return in Canada?

Position: Yes.

Reasons: Paragraph 56(1)(b) applies to the receipt of all support amounts.

26 September 2001 External T.I. 2001-0094025 - Part-year Residents, Credits

Unedited CRA Tags
118.94

Principal Issues:
1) Will a part-year resident's income during the non-resident period affect the credits that he or she can claim in the computation of taxes under Part I of the Act?
2) Will certain credits transferred from a part-year resident taxpayer's spouse have to be prorated if the credits have already been prorated in the computation of amounts eligible for transfer from the taxpayer's spouse?

Position: 1) Yes. 2) No.

Reasons:
1) If section 118.94 applies, certain credits will be denied where certain income tests are not satisfied.
2) A reasonable proration is required under the subparagraph 118.91(b)(ii) of the Act. From a policy perspective, there is no reason to have a second proration of an amount that has already been prorated for the non-resident period. The Returns Processing and Compliance Section of the International Tax Directorate has confirmed that they require only one proration when they apply the provision.

26 September 2001 External T.I. 2001-0102545 - Deemed Resident (Spouses)

Unedited CRA Tags
250(1)(a)

Principal Issues:
If paragraph 250(1)(a) of the Act applies to deem a person to be a resident of Canada, will the spouse of that person be deemed to be a resident of Canada?

Position:
No.

Reasons: Paragraph 250(1)(a) applies only to the particular individual who has sojourned in Canada for more than 183 days. Where the spouse is not a factual resident of Canada and did not sojourn in Canada for more than 183 days, he or she would not be considered a resident of Canada.

25 September 2001 External T.I. 2001-0098145 - ACTIONS D'UNE FILIALE

Unedited CRA Tags
7(1) 7(7)

Principales Questions:
Le paragraphe 7(1) de la Loi peut-il s'appliquer lorsqu'une société convient de vendre à un employé des actions qu'elle possède dans le capital-actions de sa filiale dont elle détient la totalité des actions émises et en circulation?

Position Adoptée: Oui

25 September 2001 External T.I. 2001-0091755 - Estate Cap. Gains, Non-Resident Beneficiary

Unedited CRA Tags
104(21)

Principal Issues: Can taxable capital gains earned within a trust be allocated to a non-resident beneficiary?

Position: No.

Reasons: Subsection 104(21) does not provide for the flow-through of capital gains to non-residents.

20 September 2001 External T.I. 2001-0067815 - Class 43.1 - "Ancillary to"

Unedited CRA Tags
Class 43.1 13(18.1)

Principal Issues:
Whether certain expenditures would qualify for inclusion in Class 43.1.

Position:
Involves questions of fact to be determined with reference to the circumstances relevant to a particular situation as well as through consultation with Natural Resources Canada.

Reasons:
Nature of the determination as well as the requirements of subsection 13(18.1).

20 September 2001 External T.I. 2000-0006215 - Qualified Property

Unedited CRA Tags
219

Principal Issues: Whether a partnership interest is qualified property for the purpose of paragraph 219(1)(l) of the Act?

Position: No

Reasons: Even though the partners are considered to be carrying on the business of the partnership, the partnership interest cannot be considered to be property used by the partners for the purpose of gaining or producing income from a business.

20 September 2001 External T.I. 2001-0097755 - acquisition of control- non capital losses

Unedited CRA Tags
111(5)

Principal Issues:
Flow through of non-capital losses after an acquisition of control.

Position:
Question of fact

Reasons:
The availability of the non-capital losses will depend on whether the business that sustained those losses is still being carried on.

2001-009775
XXXXXXXXXX Karen Power, C.A.
(613) 957-8953
October 12, 2001

20 September 2001 External T.I. 2001-0070705 F - ETABLISSEMNT DOMESTIQUE AUTONOME

Unedited CRA Tags
18(12) 248(1)

Position Adoptée :
Question de fait à savoir si le paragraphe 18(12) est applicable. Cependant, le fait que le local de travail soit attenant à la résidence principale n'empêchera pas, en soi, que ce paragraphe est applicable.

19 September 2001 External T.I. 2001-0086545 F - IMMEUBLE VENDU A PERTE

Unedited CRA Tags
13(7)(c) 110.6(19)(a)

Position Adoptée:
Aucune perte en capital n'est permise sur la bâtisse qui est un bien amortissable mais une perte en capital pourrait être réclamée sur le terrain.

18 September 2001 External T.I. 2001-0095265 F - TAXE SUR LE CAPITAL

Unedited CRA Tags
181.2(3)(c) 181(3)

Principales Questions: Est-ce que le découvert de banque (au bilan), créé par les chèques en circulation d'une société (qui est régie par le Code Civil du Québec) constituent des prêts et avances devant être inclus dans le capital imposable?

Position Adoptée: Non

14 September 2001 External T.I. 2001-0095665 - OETC, period less than 6 months

Unedited CRA Tags
122.3

Principal Issues: Would an individual be entitled to the overseas employment tax credit if they do not meet the 6 consecutive months condition because of a personal crisis?

Position: No.

Reasons: CCRA's long standing position is that the taxpayer must be out of the country for 6 consecutive months. The conclusion was also taken in the situation where the taxpayer was out of Canada for 176 days.

14 September 2001 External T.I. 2000-0027015 - Trusts and Farm Property Rollovers

Unedited CRA Tags
70(9) 248(1) 17(5) 73(3)

Principal Issues: 1. Where a discretionary trust is set up to benefit a class of beneficiaries being the issue of the testator is the rollover under 70(9) available?

Position: 1. No

Reasons: 1. the property cannot vest indefeasibly where a trustee has discretion

13 September 2001 External T.I. 2001-0097675 F - COUT INDIQUE REVENUS A RECEVOIR

Unedited CRA Tags
206(2)

Principales Questions:
1. La position du IT-133 relativement à la date d'acquisition est-elle applicable aux fins du paragraphe 206(2) de la Loi?
2. Doit-on tenir compte des intérêts courus, des dividendes à recevoir ainsi que les frais payables à la fin du mois dans le "coût indiqué d'un bien"?

12 September 2001 External T.I. 2001-0081975 - XXXXXXXXXX Canadian Taxes

Unedited CRA Tags
126(3)

Principal Issues: Will an amount paid by the XXXXXXXXXX to a resident of Canada be exempt from Canadian taxes?

Position: No.

Reasons: There is no provision in the Act that exempts such amounts from Canadian tax.

11 September 2001 External T.I. 2001-0072575 - Units of Trust - Distribution to Public

Unedited CRA Tags
132(6)(c) Reg 4803
Summary Under
Tax Topics - Income Tax Regulations - Regulation 4801 - Paragraph 4801(a)
addition of 4801(a)
Summary Under
Tax Topics - Income Tax Regulations - Regulation 4803 - Subsection 4803(2) - Paragraph 4803(2)(a)
preliminary prospectus

Principal Issues: Does a mutual fund trust cease to qualify as such if, after meeting the conditions in Regulation 4801(a), the securities regulators refuses to issue a receipt for subsequent prospectuses?

Position: No.

Reasons: Once a class of units has been issued pursuant to a prospectus which has been accepted and receipted by the securities regulators, the class of units is qualified for distribution to the public within the meaning of 4803(2).

10 September 2001 External T.I. 2001-0090655 - QSBCS business primarily in Canada

Unedited CRA Tags
1106(1)(c)(i)

Principal Issues: Is a particular business being carried on in Canada?

Position: Question of fact.

Reasons: Actual situation and completed transactions so we could only provide very general comments.

10 September 2001 External T.I. 2001-0093035 - Canadian Taxation General Comments

Unedited CRA Tags
2(3) 128.1(4)

Principal Issues: Can we comment on the taxation of real estate gains earned through foreign corporations by a specific individual that may or may not be a resident of Canada?

Position: No.

Reasons: We do not have the individual's consent to discuss his or her tax matters with the writer. Consequently, only general comments were provided to the writer.

30 August 2001 External T.I. 2001-0093645 F - FRAIS IMPUTE A UN REER LORS D'UN RETRAIT

Unedited CRA Tags
146(8)

Principales Questions: Les frais administratifs imputés à un REÉR lors d'un retrait doivent-ils être inclus à titre de prestation lors de l'établissement du formulaire T4RSP

Position Adoptée: non

29 August 2001 External T.I. 2001-0097485 F - DEDUCTION DE FRAIS DE SURVEILLANCE

Unedited CRA Tags
20(1)(bb)

Position Adoptée:
Question de fait mais probablement pas

23 August 2001 External T.I. 2001-0095015 F - ALLOCATION DE RETRAITE

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

Principales Questions:
1. Est-ce qu'un paiement reçu avant la perte d'emploi est une allocation de retraite même si l'employé ne continue pas à travailler jusqu'à la date prévue pour la cessation d'emploi puisqu'il sera en congé sans solde?
2. Dans la même situation qu'en 1. ci-dessus, est-ce que le paiement sera considéré comme une allocation de retraite même si l'employé continue de bénéficier des assurances collectives et du régime de pension jusqu'à la date de cessation d'emploi?
3. Dans la même situation qu'en 1, est-ce que le paiement peut-être échelonné?
4. Dans la même situation qu'en 1, est-ce qu'un délai de 18 mois entre la date du début du congé sans solde et la date de la cessation d'emploi est un délai raisonnable permettant que le paiement soit considéré comme une allocation de retraite.

Position Adoptée:
1. Oui.
2. Oui.
3. Oui.
4. Oui.

22 August 2001 External T.I. 2001-0074835 - Application of paragraph 13(7)(e)

Unedited CRA Tags
12(1)(g) 13(7)(e) 69(1)

Principal Issues: Application of paragraph 13(7)(e) where paragraph 12(1)(g) applies to the vendor.

Position: No comment.

Reasons: Need to either request a ruling or go get a TSO referral.

21 August 2001 External T.I. 2000-0028475 - Withholding tax - Partnership

Unedited CRA Tags
212 96

Principal Issues: Applicable rate of withholding tax on income of partners

Position: If a partnership for Canadian purposes, income of partnership retains its nature and flows through to partners. If a partner is a resident of a treaty country, that treaty will apply.

Reasons: Partnership is not an entity

17 August 2001 External T.I. 2001-0095645 F - PRET HYPOTHECAIRE INTERETS

Unedited CRA Tags
20(1)(c)

Position Adoptée:
Non.

16 August 2001 External T.I. 2001-0093715 F - ALLOCATION DE RETRAITE ET RAP

Unedited CRA Tags
146(5)(a)(iv.1) 60(j.1)

Principales Questions: Une allocation de retraire reçue d'un employeur et qui est versée à titre de prime dans un régime enregistrée d'épargne-retraite peut-elle être utilisée dans le cadre d'un régime d'accession à la propriété (RAP) sans attendre un délai de 90 jours?

Position Adoptée: Oui

3 August 2001 External T.I. 2000-0060835 F - RESSOURCES D'HEBERGEMENT

Unedited CRA Tags
8(1)B)

Principales Questions:
Les montants versés pour des services d'hébergement en ressource de type familial de réadaptation sont-ils des revenus exonérés en vertu de l'alinéa 81(1)h) pour:

(1) le responsable contractuel avec les XXXXXXXXXX
(2) la famille d'accueil

Position Adoptée:
(1) non
(2) commentaires généraux

24 July 2001 External T.I. 2001-006547 F - RESERVE POUR GAIN EN CAPITAL

Unedited CRA Tags
40(1)

Principales Questions: Le contribuable a-t-il droit à une réserve pour gain en capital ?

Position Adoptée: Non

20 July 2001 External T.I. 2001-0092425 F - PLACEMENTS ADMISSIBLES SPCC

Unedited CRA Tags
REG 4900

Position Adoptée:
Commentaires généraux

RAISON POUR POSITION ADOPTÉE:
S/O

17 July 2001 External T.I. 2000-006174 F - BIENS D'INVENTAIRE

Unedited CRA Tags
9(1) 10(1)

Principales Questions:
1. Est-ce que les transactions de valeurs mobilières d'une société constituent un revenu provenant de la détention de biens, de l'exploitation d'une entreprise ou d'un projet comportant un risque ou une affaire de caractère commercial?
2. Est-ce que valeurs mobilières sont des immobilisations ou des biens figurant dans un inventaire?

Position Adoptée: Ne peut répondre.

17 July 2001 External T.I. 2001-0091015 F - RISTOURNES DE COOPERATIVES DE TRAVAILLEURS

Unedited CRA Tags
135 136(2)

Position Adoptée:
La ristourne payable serait déductible en application du paragraphe 135(1) de la Loi.

RAISON POUR POSITION ADOPTÉE:
Basé sur notre nouvelle position dans le dossier 990274, une somme calculée en fonction du volume de travail effectué directement ou indirectement par un membre pour sa coopérative rencontrerait la définition "répartition proportionnelle à l'apport commercial".

17 July 2001 External T.I. 2001-0068355 F - DEDUCTION D'UN BONI A UN EMPLOYE

Unedited CRA Tags
18(1)(a) 18(1)(b) 40(1)(a)(i)

Position Adoptée:
Aucune.

RAISON POUR POSITION ADOPTÉE:
Question de fait.

3 May 2001 External T.I. 2001-0069535 F - DEPENSE D'INTERET REGLES D'ATTRIBUTION

Unedited CRA Tags
20(1)(c)\ 73(l) 74.1(1) 74.5(1)

Principales Questions: Un contribuable transfert un bien producteur de revenu à son conjoint. Les paragraphes 73(1), 74.1(1) et 74.2(1) s'appliquent à la situation. Le bénéficiaire du transfert peux-t-il déduire les intérêts sur l'argent emprunté pour financer l'acquisition?

Position Adoptée: Aucune réponse définitive.

Technical Interpretation - Internal

11 October 2001 Internal T.I. 2001-0079197 F - pension alimentaire

Unedited CRA Tags
56.1(4) 56.1(3)

Principales Questions:

1. Une ordonnance datée du XXXXXXXXXX fixe le montant de la pension alimentaire pour enfants à verser par Monsieur à XXXXXXXXXX $ par semaine. Une convention entérinée par la cour le XXXXXXXXXX suspend temporairement la pension alimentaire jusqu'au XXXXXXXXXX . Les paiements qui reprennent en XXXXXXXXXX sont-ils sujet aux nouvelles règles?

2. Une ordonnance datée du XXXXXXXXXX fixe le montant de la pension alimentaire pour enfants à verser par Monsieur à XXXXXXXXXX $ par mois. Dans la déclaration d'impôt de XXXXXXXXXX de Madame, un accord écrit daté du XXXXXXXXXX stipule que Monsieur et Madame ont convenu de transférer temporairement la garde des enfants à Monsieur du XXXXXXXXXX . Durant cette période, c'est Madame qui paiera un montant de XXXXXXXXXX $ à Monsieur. En XXXXXXXXXX , la garde est rétablie à Madame et Monsieur recommence à verser XXXXXXXXXX $ par mois à titre de pension alimentaire pour enfants. Quel est le traitement des sommes versées à partir de XXXXXXXXXX ?

Position Adoptée:

8 October 2001 Internal T.I. 2001-0086177 F - FRAIS DE SCOLARITE

Unedited CRA Tags
118.5(1)(a)

Principales Questions:
Déterminer si les montants versés au collège XXXXXXXXXX qui offre des cours de langues peuvent se qualifier à titre de frais de scolarité pour les fins du crédit d'impôt pour frais de scolarité selon les modalités du paragraphe 118.5(1) de la Loi.

Position Adoptée:
Très peu probable dans la situation présentée.

3 October 2001 Internal T.I. 2001-0092607 - SCIENTIFIC RESEARCH

Unedited CRA Tags
37(8) 37(1)

Principal Issues: Whether a license to use computer software constitutes an expenditure of a current nature for the lease of equipment, for the purposes of the proxy method in calculating a taxpayer's SR&ED expenditures.

Position: No.

Reasons: A license to use computer software, based on the definition of "computer software" in Regulation 1104(2) and paragraph (o) of class 12 of Schedule II to the Regulations, is depreciable capital property. Also, paragraph 10 of IT-283R2 provides that computer software with an enduring nature would be capital property rather than expenditure of a current nature. In this case, the computer software has an estimated useful life of three years.

3 October 2001 Internal T.I. 2001-0076567 - tax credits; foreign; unused tuition

Unedited CRA Tags
126(1) 118.61(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 CCRA.

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

Principal Issues

1. whether tuition and education tax credits not claimed in a year reduce foreign tax credit claim under 126(1)?

2. whether foreign tax credits are taken into account in "C" of the formula in 118.61(1)?

Position

1. No
2. No

28 September 2001 Internal T.I. 2001-0073517 - Property of Estate

Unedited CRA Tags
150(1)(a) 56(1)(a)

Principal Issues: Where an income amount is received unexpectedly after the administration of an estate, what is the proper procedure to report the income?

Position: Follow E9802647.

Reasons: The issue was decided in E9802647.
September 28, 2001

18 September 2001 Internal T.I. 2001-0082997 F - COTISATIONS PATRONALES REGIME DIFFERES

Unedited CRA Tags
18(1)

Position Adoptée:
Aucune

11 September 2001 Internal T.I. 2001-0080117 - TCP from trust resident in Canada

Unedited CRA Tags
Art XIII(9) 107(2)

Principal Issues: 1. Did the residual capital beneficiary acquire beneficial ownership of the property held in the trust in XXXXXXXXXX when the trust was created?
2. Does Article XIII(9) of Canada-US treaty exempt any portion of the US resident's gain on property acquired from trust under 107(2) in 1997?

Position: 1. No. 2. No.

Reasons: 1. Paragraph 1 of IT-449R. Unless the trustee can reasonably be considered to act as agent for the beneficiary, the beneficiary does not have beneficial ownership of the property held in the trust but rather, has an interest in the trust.
2. As shown in example 5 of the US Technical Notes to Article XIII(9), the exemption in 9(b) for property acquired in non-recognition transactions only applies when all owners of the property after Sept 26, 1980 were resident in the "other" Contracting State during the time that owner held the property. In the case of an exemption from Canadian tax under Article XIII(9), each owner of the property after Sept. 26, 1980 would have to have been resident in the US for the period of time after Sept. 26th when that owner owned the property.

11 September 2001 Internal T.I. 2001-0072137 - Filing Requirement of Trustee

Unedited CRA Tags
150(1)(c) 104(24)

Principal Issues: Whether a lawyer who was appointed as Trustee for the practice and property of another lawyer is required to file T3 returns?

Position: Yes.

Reasons: The trust earned income and it was not payable in the year to the beneficiary. The requirements to obtain the benefit of administrative relief as described in IT-129R were not met.

30 August 2001 Internal T.I. 2001-0089997 - CCA CLASS 10.1

Unedited CRA Tags
13(2) 20(16.1) 1100(2.5)

Principal Issues:
What is the correct amount of CCA under the Act for a class 10.1 passenger vehicle acquired and disposed of during the same year?

Position:
No deduction for CCA or a terminal loss is permitted

Reasons:
Subsection 20(16.1) of the Act denies a terminal loss. Subsection 1100(2.5) of the Regulations does not permit a deduction for 1/2 of the CCA allowable as if the vehicle were not disposed of, unless it was owned at the end of the immediately preceding taxation year.

16 August 2001 Internal T.I. 2001-0079317 F - RESIDENCE PRINCIPALE DEMI-HECTARE

Unedited CRA Tags
54

Principales Questions: Quelle portion des terrains peut être considérée comme facilitant l'usage et la jouissance de la résidence pour calculer l'exemption pour gain en capital pour une résidence principale?

Position Adoptée: Questions de fait. L'exemption ne s'applique pas sur des terrains adjacents sur lesquels il n'y a pas de résidence ni sur la portion d'un terrain qui sert à une entreprise commerciale.

3 August 2001 Internal T.I. 2001-0092397 - Tailings Resource Allowance

Unedited CRA Tags
Reg 1204 (1)(b) 20(1)(V.1)

Principal Issues: 1. Whether tailings are ore, for purposes of the Act. 2. Whether clause 1204(1)(b)(iii)(A) of the regulations applies to ore that is owned by the processor. 3. Whether reliance must be placed on para 20(1)(v.1) of the Act to enable income from the processing of tailings to be included in income under regulation 1204(1)(b) of the Regulations.

Position: 1. Yes. 2. Yes. 3. No.

Reasons: 1. This letter expands on our reply given in letter E2001-0071097 on April 17, 2001. Rulings longstanding position regarding tailings meeting the definition of an ore in subsection 1206(1) of the Regulations. 2. The words of the provision are clear. The meaning of the word 'operated' does not include 'owned.' 3. The wording of clause 1204(1)(b)(iii)(A) and the definition of ore are sufficient to enable income from the processing of tailings to be included in income under paragraph 1204(1)(b) of the Regulations.

13 July 2001 Internal T.I. 2001-0082727 - Foreign Dividends

Unedited CRA Tags
90(1) 12(1)(k)

Principal Issues: Whether a Canadian resident individual is required to include the amount of the "imputation tax credit" on a franked dividend" received from a corporation resident in Australia in his/her income for Canadian income tax purposes.

Position: No.

Reasons: Not part of the dividend received by the taxpayer.

7 June 2001 Internal T.I. 2001-0069430 - Specified Employer

Unedited CRA Tags
122.3(2)

Principal Issues: Whether the Federal Government of Canada is a specified employer for purposes of subsection 122.3(2) of the Act

Position: Yes

Reasons: Definition of "person" in subsection 248(1) of the Act.

3 May 2001 Internal T.I. 2001-0081837 F - BILLET CONVERTIBLES PRINCIPAL

Unedited CRA Tags
20(1)(f)

Position Adoptée:
Non.

2 May 2001 Internal T.I. 2001-007939 F - CONVENTION D'EMISSION D'ACTIONS

Unedited CRA Tags
7(1)(a) 7(2)

Principales Questions: Est-ce que le contribuable doit s'imposer sur un avantage visé à l'alinéa 7(1)a) de la Loi en XXXXXXXXXX ? En quelle année les actions lui sont acquises de façon définitive ?

Position Adoptée: Selon les documents soumis, l'alinéa 7(1)a) s'applique en XXXXXXXXXX .