Income Tax Severed Letters - 2016-03-09

Technical Interpretation - External

21 January 2016 External T.I. 2015-0607311E5 - Junior golf memberships

CRA Tags
ITR 9400

Principal Issues: Whether junior golf memberships in Canada are eligible for the children's fitness tax credit

Position: It is a question of fact in each case. If all conditions are met, a junior golf membership could be eligible.

Reasons: Must meet the requirements of section 122.8 of the Act and section 9400 of the Regulations

24 December 2015 External T.I. 2015-0568921E5 - Education tax credit-number of months of enrolment

CRA Tags
118.6

Principal Issues: Whether in a given situation, a learning package that is designed for independent study and available to students online for a period of 12 months, can entitle students to the part-time education tax credit for the full 12 months, even when students complete their learning within a shorter period of time.

Position: Question of fact – Provided that all of the requirements under section 118.6 are met, a student may be eligible for the part-time education tax credit during each of the 12 months provided that the learning package was planned, at the beginning of the learning session, to run over a 12-month period.

Reasons: Previous position in document 2013-0477151E5 (F)

18 December 2015 External T.I. 2015-0599661E5 - Meaning of job coaching - disability supports

Principal Issues: Whether the services provided by a physiotherapist and a speech-language pathologist would be considered “job coaching services” or tutoring services for the purpose of the disability supports deduction in a given situation.

Position: Question of fact, but likely not in this case. General comments given regarding job coaching services in the context of the disability supports deduction.

Reasons: Job coaching generally requires on-the-job support that is provided by a person who is engaged in the business of job coaching.

Technical Interpretation - Internal

5 February 2016 Internal T.I. 2014-0555291I7 - Interest deductibility

Amalco (successor to internal Buyco) free to allocate assumed debt to retained rather than distributed Target assets

Principal Issues: Whether interest on a debt assumed to acquire shares is deductible following an amalgamation and subsequent return of capital?

Position: Yes, based on the facts provided.

Reasons: Application of principles established by case law.

24 December 2015 Internal T.I. 2015-0612331I7 - Oocyte preservation

CRA Tags
118.2(2)(a), 118.2(2)(o)

Principal Issues: Are amounts paid for oocyte preservation, thawing of eggs and embryos and sperm freezing, when medically indicated, eligible medical expenses?

Position: Amounts paid for the cost of a stimulating and harvesting cycle, the freezing and thawing of eggs or embryos and sperm freezing, when medically indicated (such as, for the medical condition of infertility or medically advisable because of impeding medical treatments, such as, chemotherapy for cancer, that is likely to have a direct significant negative effect on reproduction functions) would qualify as eligible medical expenses if the requirements of 118.2(2)(a) and 118.2(2)(o) are otherwise met.

Reasons: The requirements of paragraphs 118.2(2)(a) or 118.2(2)(o) must be met.

2 December 2015 Internal T.I. 2015-0621231I7 - Insulin pens

Principal Issues: Whether the cost of an insulin pen would be eligible for the medical expense tax credit

Position: Likely yes

Reasons: The pen would be considered a syringe or needle designed to be used for the purpose of giving an injection

19 November 2015 Internal T.I. 2015-0570381I7 - Exemption under paragraph 149(1)(o.2)

Principal Issues: Whether a corporation is exempt under paragraph 149(1)(o.2) of the Act?

Position: Where a corporation meets the requirements of subparagraph 149(1)(o.2)(ii) and is also a prescribed person for purposes of clause 149(1)(o.2)(iv)(D), the corporation would be exempt under paragraph 149(1)(o.2). In the particular situation the particular corporation may be exempt if it factually meets subparagraph 149(1)(o.2)(ii) and is owned by a prescribed person.

Reasons: Legislation and question of fact.

9 November 2015 Internal T.I. 2015-0598481I7 - Eligibility of Expenses

CRA Tags
8(1), 8(1)(i)(i), 8(2)

Principal Issues: 1. Whether expenses for off-duty firearm practice are deductible from employment income.

Position: 1. In this case, no

Reasons: See response