Income Tax Severed Letters - 2005-07-29

Principal Issues: Where a non-resident payer is a partnership (made up of corporations) and is deemed to be a resident of Canada, is the exemption in 212(1)(b)(vii) available

Position: YES

Reasons: Prior positions

Principal Issues: time at which suspended loss under 13(21.2) may be realized

Position: at time of first event described in 13(21.2)(e)(iii)

Reasons: in circumstances, hypothetical property deemed to be owned by one predecessor corporation following an amalgamation would not be property of the same class as similar property owned by the other predecessor corporation

Principal Issues: Whether, for the purposes of subsection 116(5), there is an acquisition of a taxable Canadian property on the exercise of a warrant to acquire shares?

Position: No.

Reasons: On exercise of a warrant to acquire shares, the rights represented by the warrant merely disappear. There is a disposition of a property by the holder of the warrant but there is no corresponding acquisition of property by a purchaser.

Principales Questions: Un contribuable peut-il transférer à un REER les fonds d'un régime de pension étranger dans lequel le contribuable et son employeur ont fait des contributions?

Position Adoptée:
Question de fait.

Raisons:
Sujet à l'application de la convention fiscale avec le pays et du paragraphe 56(1)a).

Principales Questions: La maison d'enseignement nous demande si les frais qui sont mentionnés dans la demande sont des frais de scolarité pouvant donner droit au crédit d'impôt pour frais de scolarité.

Position Adoptée: Cela dépend des frais

Raisons: Application du texte de loi et du bulletin d'interprétation IT-516R2.

Principal Issues: Where subsection 100(2) adds the negative ACB of a partnership interest to the capital gain otherwise determined, can a reserve under 40(1)(a)(ii) be taken on the full amount?

Position: No

Reasons: Reserve is in respect of an amount that is payable after the end of the year. A negative acb addition to the capital gain is simply a calculation and not an amount payable after the end of the year.