Income Tax Severed Letters - 1995-12-29

Miscellaneous

Ministerial Correspondence

11 December 1995 Ministerial Correspondence 9530504 - Western Grain payments
Unedited CRA Tags: 
12(1)(X)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

DEPUTY MINISTER'S OFFICE (3) ADM 80568
ASSOCIATE DEPUTY MINISTER (1) DM 22113
ADM'S OFFICE (3)
RETURN TO RULINGS 15TH FLOOR, ALBION TOWER

December 11, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

29 May 1995 Ministerial Correspondence 9506974 - INDIANS, RRSP
Unedited CRA Tags: 
81(1)(a)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

ADM'S OFFICE (2) ADM 950424
RETURN TO 15TH FLOOR, ALBION TOWERS
AUTHOR
SUBJECT OR CORPORATE FILE

May 29, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

Technical Interpretation - External

22 December 1995 External T.I. 9526205 - legal fees to enforce pre-existing right to support
Unedited CRA Tags: 
18(1)(A) 111(1)(a) 4(1)(a)

Principal Issues:

several q's re. legal fees incurred to enforce a pre-existing right to support (whether deductible under the general provisions of the Act rather than subdivision e; whether the fees are allocable to a source pursuant to 4(1)(a) of the Act; whether the right to maintenance is a source of income within the meaning of the Act; do maintenance payments represent income from pty within the meaning of the Act; if legal expenses exceed maintenance rec'd in the year, does the excess rep. a loss for the year from a pty for the purposes of the definition of "non-capital loss" in 111(1)(a) of the Act?

Position:

fees are deductible under the general provisions of the Act. Legal expenses are allocable to a source pursuant to 4(1)(a). Def'n of property in 248(1) is broad enough to include a right to maintenance and income which arises from this right is a source of income for the purposes of para 3(a) of the Act. While a right to maintenance is "property", maintenance payments themselves are not taxed as income from property. When rec'd, maintenace payments, if required to be included in income, are so included under subdivision d rather than b. Where legal expenses exceed maintenance rec'd in a year, the "loss for the year from...property" as referred to in "E" in the definition of "non-capital loss" is the actual amount of legal expense incurred.

Reasons:

18 December 1995 External T.I. 9520935 - MEALS AND ENTERTAINMENT
Unedited CRA Tags: 
67.1(1) 67.1(2)(e)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		952093
XXXXXXXXXX	A.M. Brake

Attention: XXXXXXXXXX

December 18, 1995

Dear Sirs:

Re: Paragraphs 67.1(2)(d) and (e) of the Income Tax Act (the "Act")

15 December 1995 External T.I. 9532055 - ANONYMOUS CHARITABLE GIFTS
Unedited CRA Tags: 
118.1 168(1)(d) REG 3501(1)(g)

Principal Issues:

Whether an anonymous donor may claim a deduction under subsection 118.1(3) in respect of donations to charitable organizations.

Position:

No

Reasons:

14 December 1995 External T.I. 9529205 F - PORTÉE DE L'ARTICLE DANS UNE SITUATION DONNÉE.
Unedited CRA Tags: 
78(1)b) 78(1) Partie XIII

Principales Questions:

14 December 1995 External T.I. 9525615 F - bien de remplacement - sciage séchage planage du bois
Unedited CRA Tags: 
13(4) 44(1) REG 1103(1) SCH II 20(1)(a)

Principales Questions:

1. Est-ce que les biens acquis par la société constitueraient des biens acquis en remplacement des biens détruits aux fins des paragraphes 13(4) et 44(1) de la Loi?

2. Dans quelle catégorie de l'annexe II serait compris le séchoir à bois?

3. Est-ce que la société pourrait inclure dans la catégorie 1 de l'annexe II les biens compris dans les catégories 2 à 12? Si oui, serait-il possible de ne pas inclure dans la catégorie 1 la totalité des biens de la même entreprise des catégories 2 à 12?

Position Adoptée:

11 December 1995 External T.I. 9527785 - COMPUTER SOFTWARE
Unedited CRA Tags: 
Class 12

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

			952778
XXXXXXXXXX		A.M. Brake

Attention: XXXXXXXXXX

December 11, 1995

Dear Sirs:

Re: Computer Software

8 December 1995 External T.I. 9529245 - MIRROR ACCOUNTING SYSTEM & PART I.3
Unedited CRA Tags: 
181(3) 181.2(4) 181.2(3)

Principal Issues:

7 December 1995 External T.I. 9530335 - PENSION WINDUP, MISSING MEMBERS, 153(1)
Unedited CRA Tags: 
153(1)

Principal Issues:

Would payments into court on behalf of missing members on the wind-up of a pension plan be subject to withholding taxes?

Position: Yes

Reasons:

6 December 1995 External T.I. 9526175 - EMPLOYMENT NOT SUBJECT TO UIP
Unedited CRA Tags: 
18(1)

Principal Issues:

Is salary and remuneration deductible in a type of employment not subject to unemployment insurance premiums

Position: Yes

Reasons:

1 December 1995 External T.I. 9530305 - LAND IN EXCESS OF 1/2 HECTARE
Unedited CRA Tags: 
54

Principal Issues:

whether clients excess land is necessary for the use and enjoyment of the housing unit as a residence

Position:

referred to local TSO

Reasons:

1 December 1995 External T.I. 9531415 - APPROVED ASSOCIATION STATUS
Unedited CRA Tags: 
37(1)(a)(ii)(a)

Principal Issues:

Outline criteria to be met in order to receive approved association status for the purposes of 37(1)(a)(ii)(A).

Position:

Outline of requirements provided.

Reasons:

1 December 1995 External T.I. 9529955 - GENERAL COMMENTS ON EMPLOYER-ADMINISTERED PHSP
Unedited CRA Tags: 
6(1)(a)

Principal Issues:
self-administered phsps & the rules relating to c/f, eligible expenses, etc.

Position:
general comments given

Reasons:
a phsp which is comingled with a taxable plan will likely be an ebp

29 November 1995 External T.I. 9531155 - RETIRING ALLOWANCE RRSP ROLL
Unedited CRA Tags: 
60(j.1)(iv)

Principal Issues:

general info on retiring allowance and rollover to a RRSP.

Position:

Routine comments

Reasons:

27 November 1995 External T.I. 9528505 - MIC
Unedited CRA Tags: 
130.1(6)(F)

Principal Issues:

Whether a corporation can qualify as a MIC where it will not hold any residential mortgages at all (ie. property described in subparagraph 130.1(6)(f)(i)) but will hold at least 50% of the cost amount of its property in investments described in subparagraph 130.1(6)(f)(ii) or in cash. The other 50% raised will be invested in a commercial third mortgage on a potato farming operation.

Position:

Transaction relies on interpretation of specific provision of Act but could be subject to GAAR.

Reasons:

27 November 1995 External T.I. 9529005 - WORK SPACE IN HOME
Unedited CRA Tags: 
8(1)(i)

Principal Issues:

A faculty member of a university has requested the university to certify on form T2200 that he is required to maintain an office in his home. This employee lives 120 kilometres from the university. The employee is provided with an office by the university and there is no express term in his employment contract which requires him to maintain an office in his home. The issue is whether form T2200 can be so certified.

Position:

No

Reasons:

27 November 1995 External T.I. 9528495 - Part'p Interest ACB grandfather method calculation
Unedited CRA Tags: 
53(1)(e)(i) 53(2)(c)(i)

Principal Issues:

Is their partnership grandfathered from our position concerning the timing of adjustments to the adjusted cost base of partnership interests, which was announced in Technical News No.5?

Position:

Yes, for partnership interests acquired before July 28, 1995.

Reasons:

23 November 1995 External T.I. 9528625 - UPDATE ON FEES PAID FOR RESIDENTIAL CARE
Unedited CRA Tags: 
118.2(2)

Principal Issues:

whether comments in 1993 correspondence 932721 are still applicable

Position:

view expressed by the Dept in the letter as they relate to the information provided to us at that time remain generally applicable. Minor amendments have been made to 118.2(2)(b) and 118.2(2)(b.1) has been added with respect to expenses incurred after 1990

Reasons:

22 November 1995 External T.I. 9528605 - SCHOLARSHIPS
Unedited CRA Tags: 
56(1)(n) 6(1)(a)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		952860
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

November 22, 1995

Dear Sirs:

Re: Paragraph 56(1)(n)

This is in reply to your letters of May 25 and October 26, 1995 concerning a scholarship program that is to be established by XXXXXXXXXX.

22 November 1995 External T.I. 9528735 - TRAINING EXPENSES
Unedited CRA Tags: 
18(1)(a)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		952873
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

November 22, 1995

Dear Sirs:

Re: Training Expenses

This is in reply to your letter of October 21, 1995 concerning the above-noted subject in relation to an ocean cruise.

22 November 1995 External T.I. 9528405 - PRINCIPAL RESIDENCE EXEMPTION
Unedited CRA Tags: 
54

Principal Issues:
Whether or not entire 10 acre property qualifies as principal residence for purposes of the principal residence exemption.

Position:
Question of Fact, however based on information provided doubtful entire property would qualify.

Reasons:
The Town has confirmed that the minimum lot sizes and severance restrictions are in place to preserve the land for agricultural uses. The Departmental's position as outlined in paragragh 22 of IT-120R4 is not applicable where this is the case.

21 November 1995 External T.I. 9520885 - DISABILITY REC'D AS DAMAGES FROM A BANKRUPT'S ESTATE
Unedited CRA Tags: 
6(1)(f)

Principal Issues:

taxation of disability payments rec'd as damages from a receiver in bankrupty

Position:

taxable under 6(1)(f)

Reasons:

31 October 1995 External T.I. 9518785 - SETTLEMENT OF DEBT BY ISSUE OF SHARES
Unedited CRA Tags: 
80(2)(g)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

	 	    5-951878
XXXXXXXXXX                 	    J. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

October 31, 1995

Dear Sirs:

Re: Technical Interpretation

26 October 1995 External T.I. 9523355 - INDIAN BAND - MUNICIPALITY? DONATION RECEIPTS?
Unedited CRA Tags: 
149(1)(c) 110.1(1)(a)(iv) 118.1(1)

Principal Issues:

26 September 1995 External T.I. 9503915 - INDIANS
Unedited CRA Tags: 
81

Principal Issues:

8 September 1995 External T.I. 9516155 - EDUCATION FUNDING TO INUITS
Unedited CRA Tags: 
56(1)(n) 81(1)(a)

Principal Issues:

Conference

6 December 1995 Roundtable Q. 19, 9530410 - 55(2) and adjustment to acb
Unedited CRA Tags: 
55(2) 53(1)(B)

Principal Issues:

Increase in stated capital-effect on acb where 55(2) applies to the deemed dividend- possibility of double taxation

Position:

double taxation only where the share not disposed of in the same year

Reasons:

Technical Interpretation - Internal

20 November 1995 Internal T.I. 9529326 - INDIANS - BUSINESS INCOME
Unedited CRA Tags: 
81(1)(a)

Principal Issues:

1.What is the basis for determining whether an Indian's business income is considered to be connected to a reserve and therefore exempt from taxation under paragraph 81(1)(a)?

2.Do treaties with Indians not provide tax exemption?

Position:

1.Consider whether the place of business (formerly referred to as "the permanent establishment") is located on reserve. To determine this, consider:

- the place where the business activities are carried out, viz., where employees report for work, where transactions with customers are arranged, and where the inventory is located;

- the location of the head office; and

- the location of the books and records.

2.No.

Reasons:

17 November 1995 Internal T.I. 9529606 - LEGAL FEES RRSP PROPERTY RESTITUTION
Unedited CRA Tags: 
146

Principal Issues:
treatment of legal fees incurred on settlement of law suite

Position:
general comments provided. referred TP to TSO

Reasons:
Factual case. additional information required

1 November 1995 Internal T.I. 9501547 - INDIANS - ALIMONY
Unedited CRA Tags: 
81(1)(a)

Principal Issues:

The basis for determining whether alimony & maintenance income is exempt.

Position:

The sole basis is the location of the residence of the recipient.

Reasons:

1 November 1995 Internal T.I. 9528567 - INDIANS - ALIMONY AND MAINTENANCE INCOME
Unedited CRA Tags: 
81(1)(a)

Principal Issues:

The basis for determining whether alimony & maintenance income is exempt.

Position:

The sole basis is the location of the residence of the recipient.

Reasons:

17 August 1995 Internal T.I. 9518307 - INDIANS - GUIDELINE 4
Unedited CRA Tags: 
81

Principal Issues:

5 July 1995 Internal T.I. 9509227 - INDIAN TUITION CREDITS
Unedited CRA Tags: 
118.5 118.6

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		July 5, 1995
	Sudbury Taxation Centre	Headquarters
	Kim Hynes	A.M. Brake
	Enquiries & Adjustments	(613) 957-8953
		950922

Tuition Fees and Education Deduction-Indians

11 May 1995 Internal T.I. 9512846 - INDIAN RRSP INVESTMENT INCOME
Unedited CRA Tags: 
81(1)(a)

Principal Issues:

8 May 1995 Internal T.I. 9509037 - STATUS INDIAN MATERNITY BENEFITS EXEMPT
Unedited CRA Tags: 
81(1)(a)

Principal Issues:

Whether maternity benefits received by a status Indian are tax exempt where they relate to exempt employment income.

Position:

Yes, maternity benefits are exempt and its reasonable that they be given the same treatment as UI benefits received throughout the maternity period.

Reasons:

13 September 1994 Internal T.I. 9423317 - CHARITABLE DONATION - SPLIT RECEIPTING
Unedited CRA Tags: 
118.1(2) 118.1(3)

Principal Issues:

Ministerial Letter

29 November 1995 Ministerial Letter 9528258 - FISCAL PERIOD - DRAFT LEGISLATION
Unedited CRA Tags: 
33 249.1

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

MINISTER/DM'S OFFICE 95-07737M
ADM'S OFFICE
RETURN TO RULINGS, 15th Floor, Albion Tower

November 29, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

29 November 1995 Ministerial Letter 9528938 F - IMPOT SUR LES OPÉRATIONS FORESTIERES
Unedited CRA Tags: 
127(2) REG 700(1)b) SCH VI

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

ADM'S OFFICE (3) ADM#
RETURN TO RULINGS
25 NICHOLAS ST., 15TH FLOOR
PENDING

Le 29 novembre 1995

XXXXXXXXXX

Monsieur,

23 November 1995 Ministerial Letter 9520908 - COMPUTER SOFTWARE, RENT
Unedited CRA Tags: 
REG 1104(2)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

			November 23, 1995
	HEADQUARTERS	HEADQUARTERS
	Appeals Branch	A.M. Brake
L. C. Tremblay	(613) 957-8953
	Director
	Attention:  Dave Turner
			952090

XXXXXXXXXX

11 September 1995 Ministerial Letter 9519848 - PROPOSED LEGISLATION ON FISCAL PERIODS
Unedited CRA Tags: 
249.1 33

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

MINISTER/DM'S OFFICE 95-05200M
ADM'S OFFICE
RETURN TO RULINGS, 15th Floor, Albion Tower

September 11, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

7 September 1995 Ministerial Letter 9518348 - INDIANS - GUIDELINE 4
Unedited CRA Tags: 
81

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

ADM'S OFFICE (2) ADM #950965
RETURN TO 15TH FLOOR, ALBION TOWER
PENDING COPY
SECTION CHIEF COPY
September 7, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

28 July 1995 Ministerial Letter 9517768 - INDIANS - APPLICATION OF GUIDELINE 4
Unedited CRA Tags: 
81

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

ADM'S OFFICE (2) ADM #941757
RETURN TO 15TH FLOOR, ALBION TOWER
PENDING COPY
SECTION CHIEF COPY

July 28, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

17 February 1995 Ministerial Letter 5M11338 - SOURCE DEDUCTION REQUIREMENTS
Unedited CRA Tags: 
153 81

Principal Issues:

Whether TD1 can be used claim that employment income will be exempt under the Indian Act and remove employer's responsibility to remit source deductions

Position:

Potential non-taxability of income does not remove requirement for source deductions

Reasons: