Income Tax Severed Letters - 2015-10-28

Technical Interpretation - External

18 August 2015 External T.I. 2015-0581431E5 - Private health services plan deduction

CRA Tags
20.01, 20.01(2)(a)

Principal Issues: Whether a sole proprietor can deduct from business income the maximum dollar limit under section 20.01 of the Act, for the premiums paid to a PHSP, if the individual's spouse, who also carries on business as a sole proprietor, deducted an amount in respect of premiums for another PHSP that covers the same individuals.

Position: It is a question of fact, in this case most likely yes.

Reasons: See response.

14 August 2015 External T.I. 2015-0580291E5 - Child Care Expenses - pre-employment costs

CRA Tags
63(3), 63, 63(1)

Principal Issues: 1.Do child care expenses include pre-employment expenses such as payments for processing fees to Service Canada and immigration fees paid to a lawyer?

Position: 1. Yes.

Reasons: 1. Published position in income tax folio S1-F3-C1, Child Care Expenses.

11 August 2015 External T.I. 2015-0580521E5 - Settlement amount for disability benefits

CRA Tags
110.2(2), 6(1)(a), 110.2(1), 6(1)(f), 5(1), 248(1), 56(1)(a)(ii)

Principal Issues: Whether a lump-sum payment received in lieu of past and future disability payments is taxable under the Act?

Position: It is a question of fact, in this case most likely yes.

Reasons: See response.

22 July 2015 External T.I. 2015-0576461E5 - Clergy Residence Deduction

CRA Tags
8(1)(c)

Principal Issues: Whether a school chaplain is eligible to claim the clergy residence deduction?

Position: See response.

Reasons: See response.

Technical Interpretation - Internal

18 June 2015 Internal T.I. 2015-0584931I7 - Qualified Donee - XXXXXXXXXX

CRA Tags
149.1(1), 149(1)(c)

Principal Issues: Does the Park qualify as a municipal or public body performing a function of government for purposes of 149(1)(c) of the Act and the definition of a qualified donee in subsection 149.1(1).

Position: Based on information provided, yes.

Reasons: See below.

16 June 2015 Internal T.I. 2015-0569011I7 - Clergy Residence Deduction

CRA Tags
8(1)(c)

Principal Issues: Whether a dormitory room is a principal place of residence or other principal living accommodation? Whether fees paid for the use of a dormitory room would be considered rent for purposes of computing the clergy residence deduction?

Position: See response.

Reasons: See response.

21 May 2015 Internal T.I. 2015-0567981I7 - Refundable ITC

CRA Tags
15(2), 127.1, 125(7)

Principal Issues: 1. Does a revision to the corporate status of a taxpayer require a reassessment? 2. Is the CRA required to reassess the returns revising the taxpayer's claims from ITC to the RITC in the statute-barred years?

Position: 1. No. 2. Yes, if the redetermination period has not expired.

Reasons: 1. The Act does not require it. 2. Based on subsections 127.1(1) and 152(1) and case law

10 April 2015 Internal T.I. 2014-0558881I7 - Employment at a Special Work Site

CRA Tags
8(10), 6(1)(b), 230(1), 6(6)

Principal Issues: Whether an allowance received for board and lodging or transportation must be fully included in an employee's income when it is determined to be in excess of a reasonable amount? Whether Form TD4 must be completed?

Position: See response.

Reasons: See response.