Income Tax Severed Letters - 2017-09-06

Ministerial Correspondence

6 July 2017 Ministerial Correspondence 2017-0698801M4 - Phoenix - Extending T1 filing deadline

Unedited CRA Tags
150(1)(d); 220(3)

Principal Issues: Whether T1 filing deadline should be extended for employees impacted by Phoenix pay system errors?

Position: No. CRA has other measures to assist affected employees.

Reasons: see response

Technical Interpretation - External

26 June 2017 External T.I. 2016-0656111E5 - Student credits for XXXXXXXXXX

Unedited CRA Tags
118.5; 118.6; 146.1

Principal Issues: Whether the XXXXXXXXXX and XXXXXXXXXX programs offered through XXXXXXXXXX and various provincial regional institutions would be eligible for the tuition credit, education and textbook credit and for educational assistance payments under an RESP.

Position: It depends

Reasons: (i) Tuition Tax Credit - if the specific educational institution that the student is enrolled in meets the requirements of subparagraph 118.5(1)(a)(i) or (ii), the student will likely be eligible for the tuition tax credit.
(ii) Education Tax Credit - Where a student is enrolled on a part-time basis at a designated educational institution in a specified educational program that requires the student spend not less than 12 hours in the program in the month on courses in the program, the student would be eligible for the education tax credit.
(iii) EAP: Assuming the hour requirements are met, the programs would likely meet the definition of either a qualifying educational program or a specified educational program.

28 October 2016 External T.I. 2016-0654331E5 F - Transfer of rights to income

Unedited CRA Tags
9; 18(1); 56(2); 56(4)
where rental lands purchased subject to obligation to pay the rents to vendor, rents did not have quality of income to purchaser under s. 9
where rental lands purchased subject to obligation to pay the rents to vendor, no income inclusion and deduction of the rents by the purchaser under ss. 9 and 18(1)(a)
where rental lands purchased subject to obligation to pay the rents to NAL vendor, s. 56(4) trumps s. 9 to include rents in purchaser’s income
s. 56(2) could apply to shareholder of purchaser of lands if vendor did not pay FMV consideration for retaining rights to rents

Principal Issues: What are the tax consequences relating to a particular situation?

Position: General comments.

Reasons: We would need an analysis of the contracts to determine the specific tax consequences in the particular situation.

Technical Interpretation - Internal

5 May 2017 Internal T.I. 2017-0693671I7 - Elected officials - Deductibility of Travel Expense

Unedited CRA Tags
8(1)(h); 8(1)(h.1); 81(2)

Principal Issues: 1. Can elected members of a provincial legislature deduct travel and motor vehicle expenses?

Position: 1. Question of fact. Where the allowance is excluded from income under subsection 81(2) of the Act, no deduction is permitted. If the allowance is not excluded under subsection 81(2) of the Act, and the travel expenses are incurred while carrying out the duties of employment, the actual expenses incurred in respect of the travel may be deducted in certain circumstances.