Income Tax Severed Letters - 2009-07-24

Ruling

2009 Ruling 2008-0264441R3 - Application of paragraph 149(1)(c) of the ITA

Unedited CRA Tags
149(1)(c)

Principal Issues: Is the XXXXXXXXXX a public body performing a function of government as that phrase is used in paragraph 149(1)(c) of the Act?

Position: Yes

Reasons: The XXXXXXXXXX is a public body because it was created as a result of the settlement of land claims in that area. It is operated by a board of directors elected by its members. In addition, members can require meetings be held and remove the directors. The directors must present a report to the members each year. Each member has one vote on issues raised at the annual general meeting. The XXXXXXXXXX is performing a function of government because it is currently negotiating a self-government agreement XXXXXXXXXX

Ministerial Correspondence

25 June 2009 Ministerial Correspondence 2009-0317381M4 - Home Renovation Tax Credit (HRTC)

Unedited CRA Tags
Jan 27, 2009 federal budget

Principal Issues: Do expenditures incurred in November 2008, to convert a home heating system to an en electrical bi-energy heating system, qualify for any income tax credits?

Position: No

Reasons: Expenditures must be incurred after January 27, 2009 to qualify for the HRTC.

Technical Interpretation - External

17 July 2009 External T.I. 2009-0322801E5 - Gift to U.S. Charitable organizations

Unedited CRA Tags
110.1(1) 118.1(1) 118.1(9) Canada-US Treaty Article XXI

Principal Issues: Guidance requested with respect to gifts to U.S. Charitable organizations

Position: General comments provided.

2009-032280
XXXXXXXXXX Sylvie Danis
(613) 957-3496
Attention: XXXXXXXXXX

July 17, 2009

16 July 2009 External T.I. 2009-0329171E5 - Interest deductibility

Unedited CRA Tags
20.1(1); 20(1)(c)

Principal Issues: Is interest on borrowings with respect to a rental property deductible under the provisions of section 20.1 of the Income Tax Act, after the source of the income ceases to exit, due to the disposition of the property, which takes place prior to 1994?

Position: No

Reasons: Section 20.1 of the Act contains rules that apply to certain situations, because of a loss of source of income which occurs after 1993.

15 July 2009 External T.I. 2008-0289731E5 - Forgiveness of Accrued Interest

Unedited CRA Tags
80(2)(b)

Principal Issues: Would section 80 apply where a creditor legally waives the right to receive accrued and payable interest (which interest was deductible in the computing of the income of the debtor) and forgives the amount in respect of such interest

Position: YES

Reasons: 80(2) (b) deems the interest payable as having a principal amount

15 July 2009 External T.I. 2009-0315221E5 F - Crédit d'impôt pour la rénovation domiciliaire

Unedited CRA Tags
2009 Federal Budget - Annex 5
cost of replacing residential septic system for principal residence (e.g., a cottage) generally qualifies

Principales Questions:
Est-ce que les coûts remplacement et d'installation d'une fosse septique et d'un champ d'épuration se qualifient à titre de dépenses admissibles donnant droit au CIRD?

Position Adoptée:
Question de fait

Raisons:
Le remplacement ou l'installation d'une fosse septique ou d'un champ d'épuration doit être fait sur un fond de terre qui fait partie d'une habitation admissible pour être admissible au CIRD.

XXXXXXXXXX 2009-031522
I. Landry, M. Fisc.
Le 15 juillet 2009

15 July 2009 External T.I. 2009-0316451E5 F - Crédit d'impôt pour la rénovation domiciliaire

Unedited CRA Tags
2009 Federal Budget - Annex 5

Principales Questions:
Est-ce que les coûts de remplacement et d'installation d'une fosse septique et d'un champ d'épuration se qualifient à titre de dépenses admissibles donnant droit au CIRD?

Position Adoptée:
Question de fait.

Raisons:
Le remplacement ou l'installation d'une fosse septique ou d'un champ d'épuration doit être fait sur un fond de terre qui fait partie d'une habitation admissible pour être admissible au CIRD.

Technical Interpretation - Internal

13 July 2009 Internal T.I. 2009-0328161I7 F - Personne entièrement à charge non-résidente

Unedited CRA Tags
118(1)(b) 118.94 250(1)
individual living outside Canada with dependant child can claim s. 118(1)(b) credit if a deemed s. 250(1) resident

Principales Questions: Est-ce qu'un particulier peut réclamer le crédit équivalent pour personne entièrement à charge lorsque cette dernière ne réside pas au Canada?

Position Adoptée: Dans certaines circonstances, oui.

Raisons: Un particulier qui habite avec son enfant à l'extérieur du Canada peut réclamer le crédit équivalent pour personne entièrement à charge si le particulier est réputé être un résident du Canada aux termes du paragraphe 250(1) de la Loi de l'impôt sur le revenu.

3 July 2009 Internal T.I. 2009-0312521I7 - Form T106

Unedited CRA Tags
s. 162(7) and (10) s. 220(1); s. 233.1; s. 161(11); s. 248(11)

Principal Issues: 1. What is the Minister's authority to assess a penalty when a person has late filed Form T106?
2. What is the Minister's authority to assess a penalty after the late filing of T106 when the person's T2 return is statute-barred?
3. If a person files a Form T106 ten years late, what is the Minister's authority to assess a late filing penalty under s. 162(7) of the Act, if there is no gross negligence penalty?
4. How should the Minister calculate interest on a penalty assessed on a late filed T106?

Position: 1. s. 162(7) and (10).
2. There is no relationship between the filing of a T2 return and an information return.
3. S. 220(1).
4. Compound interest is charged from the day on or before which Form T106 was required to be filed.

Reasons: 1. S. 162(7) and (10).
2. The only relationship between the two requirements is that each return has the same due date for filing.
3. S. 162(7) and (10).
4. S. 161(11) and s. 248(11)