Income Tax Severed Letters - 2016-11-09

Ruling

2016 Ruling 2015-0622091R3 - Supplemental Ruling

Unedited CRA Tags
20(1)(c), 112, 245

Principal Issues: Changes to the facts and proposed transactions in Advance Income Tax Ruling 2015-056473.

Position: The rulings in file 2015-056473 will continue to be valid.

Reasons: The changes do not affect our conclusions.

2015 Ruling 2013-0506291R3 - Characterization of a Remedial Payment

Unedited CRA Tags
s.204.4; 147.2(1); 20(1)(q); 56(1)(a);118(3); 147.1(15)

Principal Issues:
1.Whether the proposed remedial payment into a current member’s money purchase account is a "contribution” as defined under paragraph 147.2(1)(a) of the Act.
2.Whether the proposed remedial payment is considered income from employment.
3.Whether the proposed remedial payment made to a former member is a superannuation or pension benefit?

Position: 1.No 2. No 3. Yes.

Reasons: 1.The proposed remedial payment will not constitute a contribution to the plan within the meaning of paragraph 147.2(1)(a) of the Act and no amount of the proposed remedial payment will be deductible under subsection 147.2(1) and paragraph 20(1)(q) of the Act. 2. The proposed remedial payment to the plan in respect of a member or former member will not give rise to income from employment under either section 5 or 6 of the Act. 3. The proposed remedial payment made to a former member is required to be included in income in the year received as a superannuation or pension benefit under subparagraph 56(1)(a)(i) of the Act.

2015 Ruling 2015-0564731R3 - Loss consolidation

Unedited CRA Tags
20(1)(c), 112, 245

Principal Issues: Is the loss consolidation arrangement acceptable?

Position: Yes

Reasons: The proposed transactions conform to our requirements for loss consolidation structures.

Technical Interpretation - External

27 September 2016 External T.I. 2016-0660861E5 - partial disposition of farm quota

Unedited CRA Tags
13(37), 13(40), 14(5), 47
Summary Under
Tax Topics - Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(b) - Subparagraph 13(38)(b)(ii)
farm quota units may be identical properties

Principal Issues: What is the capital cost of a portion of farm quota disposed of under the proposed new ECP rules?

Position: See response

Reasons: See response

24 August 2016 External T.I. 2014-0542581E5 - Paragraph 20(1)(bb) - segregated funds

Unedited CRA Tags
20(1)(bb); 138.1(1)

Principal Issues: At the 2014 CALU Conference, the CRA indicated that paragraph 20(1)(bb) does not apply to allow a deduction for fees paid by a taxpayer for advice on acquiring or disposing of or for services in respect of the administration or management of segregated fund policies. Will the CRA reconsider this position?

Position: Our position remains unchanged.

Reasons: The underlying legal nature of a segregated fund policy is that of a contract of insurance, which is, in our view, not a security of the taxpayer for purposes of paragraph 20(1)(bb).