Income Tax Severed Letters - 2015-05-27

Ruling

2015 Ruling 2014-0541261R3 F - Post-Mortem Planning

CRA Tags
84.1(1), 245(2), 84(2)
Summary Under
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2)
pipeline transaction by estate of deceased sibling holding prefs of portfolio investment company ("Holdco")/Pt. IV tax avoided by controlling shareholder of Holdco holding voting shares of pipeline company

Principales Questions: Post-mortem pipeline planning.

Position Adoptée: Favourable rulings provided.

Raisons: Meets the requirements of the law.

2015 Ruling 2014-0559481R3 F - Post Mortem Planning

CRA Tags
84.1(1), 245(2), 84(2)
Summary Under
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2)
classic pipeline transaction for investment portfolio company/note paid off up to 25% per quarter for following 12 months

Principales Questions: Post-mortem pipeline planning.

Position Adoptée: Favourable rulings provided.

Raisons: Meets the requirements of the law.

2014 Ruling 2014-0544221R3 - Supplemental Ruling - extension of time

Principal Issues: Request for an extension of time to implement the proposed transactions.

Position: Time to implement the proposed transactions extended to XXXXXXXXXX.

Reasons: Based on previous positions.

Technical Interpretation - External

13 May 2015 External T.I. 2015-0567251E5 - Fees to access hydrotherapy pool

CRA Tags
118.2(2)

Principal Issues: Whether fees paid to access a special pool that is accessible by those with physical or mental handicaps would be an eligible medical expense for purposes of the medical expense tax credit?

Position: They do not appear to be eligible medical expenses in this situation.

Reasons: The fees do not fall within the eligible expenses listed under subsection 118.2(2).

4 May 2015 External T.I. 2014-0563291E5 - Working Income Tax Benefit

CRA Tags
122.7, 118.6

Principal Issues: Can an individual choose not to claim the education tax credit (ETC) in order to be eligible for the working income tax benefit (WITB)?

Position: An individual can choose not to claim the ETC but this does not determine whether or not an individual is eligible for the WITB. The individual must be an "eligible individual" to be eligible for the WITB.

Reasons: An "ineligible individual" as defined in subsection 122.7 (1) of the Income Tax Act for the purpose of the WITB includes an individual that was enrolled as a full-time student at a designated educational institution for a total or more than 13 weeks in the taxation year, unless the individual had an "eligible dependant".

14 April 2015 External T.I. 2015-0572891E5 - International in-vitro fertilization

CRA Tags
118.2

Principal Issues: Are payments in respect of in-vitro fertilization and egg donor procedures for a surrogate and an egg donor eligible medical services for the purpose of the medical expense tax credit?

Position: No.

Reasons: The medical expenses provided for under paragraphs 118.2(2)(a), 118.2(2)(n) and 118.2(2)(o) of the Income Tax Act must be in respect of the patient. The patient must be the individual, the individual's spouse or common-law partner or a dependant.

3 February 2015 External T.I. 2014-0542791E5 - NPO tax exempt status

CRA Tags
149(l)(n), 149(1)(d.5), 149(1)(l), 149(1)(i)

Principal Issues: Tax exempt status of affordable housing provider.

Position: Tax exempt.

Reasons: Various sections of the Act.

Technical Interpretation - Internal

4 February 2015 Internal T.I. 2014-0520721I7 - Indian Tax Exemption - Business Income

CRA Tags
81(1)(a), Indian Act - 87
Summary Under
Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87
exempt portion of capital gain on share sale determined by location of productive corporate activities

Principal Issues: Whether capital gain on disposition of shares in family business is taxable?

Position: Yes, pro-rated.

Reasons: See below.

8 January 2015 Internal T.I. 2014-0542451I7 - Indian Employment Income - Volunteer Firefighters

CRA Tags
81(1)(a), Indian Act 87(1)(b)

Principal Issues: Is the employment income of an Indian, who works as a volunteer firefighter in remote areas, considered tax exempt pursuant to paragraph 81(1)(a) of the Income Tax Act and section 87 of the Indian Act?

Position: Whether employment income is taxable or exempt is a question of fact. General comments provided.

Reasons: Guidelines 2, 3, and 4 will not likely apply. Guideline 1 may apply if some of the duties of employment are performed on a reserve and those duties are not merely incidental to duties performed off a reserve.