Income Tax Severed Letters - 2019-02-20

Ruling

2018 Ruling 2017-0738041R3 - XXXXXXXXXX

Unedited CRA Tags
215, Part XIII of the Act
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1)
a foreign collective investment vehicle is fiscally transparent rather than a unit trust
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1)
collective investment vehicle treated as transparent for Pt XIII purposes

Principal Issues: What is the characterization of the particular XXXXXXXXXX for the purposes of the Act?

Position: The XXXXXXXXXX is a contractual arrangement that is not a person or a taxpayer for purposes of the Act and the Canada-XXXXXXXXXX Treaty.

Reasons: The XXXXXXXXXX is an unincorporated contractual arrangement that has no legal personality and is being established such that each unitholder has an undivided co-ownership interest in the underlying properties of the Sub-funds.

Ministerial Correspondence

20 January 2019 Ministerial Correspondence 2018-0790161M4 - RRSP maturation

Unedited CRA Tags
146(2)(b.4)

Principal Issues: Demand to eliminate age 71 requirement to begin drawing down RRSP savings.

Position: Referred to Minister of Finance.

Technical Interpretation - External

24 January 2019 External T.I. 2018-0773301E5 - Paragraph 69(1)(c) and Nominal Consideration

Unedited CRA Tags
69(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c)
a transfer structured as a sales agreement for nominal consideration may qualify as a gift
Words and Phrases
gift

Principal Issues: Whether the disposition of a property to a child for the nominal amount of $1 constitutes a gift for the purposes of paragraph 69(1)(c).

Position: Depending on the facts, possibly.

Reasons: Question of fact.

22 January 2019 External T.I. 2016-0645581E5 - Health and welfare trusts (HWTs)

Unedited CRA Tags
6(1)(a)(i); 6(1)(e.1); 6(1)(f); 6(4); 144.1; 248(1) “group term life insurance policy”
Summary Under
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i)
HWT can administer a plan that is funded only with union or employee contributes where it also has employer-funded plans
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan
extension to non-employees/employee or union funded plan/requirements for rehab plan

Principal Issues: 1. Whether a HWT jointly created by a union and multiple employers can provide benefits to non-union employees. 2. Whether a HWT can administer plans that provide benefit coverage to individuals other than employees. 3. Whether a HWT can administer a plan that provides certain employee assistance benefits (e.g., drug and alcohol rehabilitation services)?

Position: Question of fact.

Reasons: See response.