Income Tax Severed Letters - 2017-02-15

Ruling

2015 Ruling 2015-0619281R3 - Qualifying Environmental Trusts for Pipelines

Unedited CRA Tags
211.6, 20(1)(ss); 107.3
Summary Under
Tax Topics - Income Tax Act - Section 211.6 - Subsection 211.6(1) - Qualifying Environmental Trust
trust funded by pipeline company respecting its reclamation obligations
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 107.3 - Subsection 107.3(1)
100% of the income and non-capital losses of a pipeline reclamation trust are allocable to the pipeline company

Principal Issues: 1. Whether the proposed Trust meets the definition of a “qualifying environmental trust” in subsection 211.6(1) of the Act.
2. Whether contributions made by the taxpayer to the Trust will be deductible in computing taxpayer’s income pursuant to paragraph 20(1)(ss) of the Act. 3. Whether Government of Canada bonds and Treasury Bills will be a “prohibited investment” of the Trust as that term is defined in subsection 211.6(1).

Position: 1. Yes; 2. Yes, provided that the Trust is a QET at the time of the contribution. 3. No.

Reasons: Legislative text.

2015 Ruling 2015-0573171R3 - Qualifying Environmental Trusts for Pipelines

Unedited CRA Tags
211.6, 20(1)(ss)

Principal Issues: 1. Whether the proposed Trust meets the definition of a “qualifying environmental trust” in subsection 211.6(1) of the Act.
2. Whether contributions made by the taxpayer to the Trust will be deductible in computing taxpayer’s income pursuant to paragraph 20(1)(ss) of the Act.

Position: 1. Yes; 2. Yes, provided that the Trust is a QET at the time of the contribution.

Reasons: Legislative text

2015 Ruling 2015-0619301R3 - Qualifying Environmental Trusts for Pipelines

Unedited CRA Tags
211.6, 20(1)(ss); 107.3

Principal Issues: 1. Whether the proposed Trust meets the definition of a “qualifying environmental trust” in subsection 211.6(1) of the Act.
2. Whether contributions made by the taxpayer to the Trust will be deductible in computing taxpayer’s income pursuant to paragraph 20(1)(ss) of the Act. 3. Whether Government of Canada bonds and Treasury Bills will be a “prohibited investment” of the Trust as that term is defined in subsection 211.6(1).

Position: 1. Yes; 2. Yes, provided that the Trust is a QET at the time of the contribution. 3. No.

Reasons: Legislative text.

Technical Interpretation - External

29 November 2016 External T.I. 2016-0663231E5 - Indian employment income

Unedited CRA Tags
87 Indian Act; 81(1)(a) Income Tax Act

Principal Issues: Whether the employment income of a particular Indian employee would be exempt from income tax.

Position: It depends, but not likely.

Reasons: See below.

Technical Interpretation - Internal

18 October 2016 Internal T.I. 2016-0640321I7 - Subsections 152(1.5) and 244(20)

Unedited CRA Tags
152(1.5); 244(20)
Summary Under
Tax Topics - Income Tax Act - Section 244 - Subsection 244(20)
notice of determination need not be sent to each partner
Summary Under
Tax Topics - Income Tax Act - Section 152 - Subsection 152(1.5)
requirement satisfied by delivery to partnership address

Principal Issues: Does subsection 244(20) apply for the purposes of subsection 152(1.5)?

Position: Yes.

Reasons: Textual, contextual and purposive application of the Act.