s. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved
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Principal Issues: The application of the loss denial rules to the foreign exchange loss incurred on the transfer of a US dollar loan.
Position: Where paragraph 40(2)(e.1) and subparagraph 40(2)(g)(ii) both apply to deny the foreign exchange loss, the ACB adjustment under paragraph 53(1)(f.1) is applicable.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:14
inheritances
Most gifts and inheritances are exempt.
Principal Issues: Whether the Income Tax Act contains any provision stating that inheritances are not taxable?
Position: No. However, the Canada Revenue Agency's general position, as set out in paragraph 4 of IT-334R2, Miscellaneous Receipts, and on page 10 of the T1 General Income Tax and Benefit Guide, is that most gifts and inheritances (i.e., voluntary transfers of real or personal property without consideration) are not subject to tax in the hands of the recipients.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:12
SR&ED respecting pharmaceuticals was manufacturing or processing
A pharmaceutical company carries on SR&ED at a building whose floor space is more than 90% utilized as laboratories for pharmaceutical research...
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Principales Questions: 1. Les activités de RS&DE constituent-elles de la fabrication et transformation aux fins du calcul du 90 % de l'aire de plancher du bâtiment à l'alinéa 1100(1)a.1)? / Does the SR&ED activities constitute manufacturing or processing for the purposes of the 90 % of the floor space of the building calculation at paragraph 1100(1)(a.1)?
2. Sinon, que signifie le terme « utilisée » à l'alinéa 1100(1)a.1)? / Otherwise, what does the term « used » at paragraph 1100(1)(a.1) mean?
Position Adoptée: 1. Probablement, à condition que le contribuable qui fait la RS&DE fabrique également le produit commercial./ Probably, provided that the taxpayer who performs the SR&ED also produces the commercial product.
2. Aucune./ None.
Raisons: 1. La Loi et les positions antérieures. / The Law and the previous positions.
2. Sans objet. / Not applicable.
no reassessment to retroactively adopt a different earn-out recognition
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Principales Questions: Est-ce qu'un contribuable, qui n'a pas utilisé la méthode de recouvrement du coût pour déclarer le gain en capital sur une vente d'actions soumises à des clauses d' « indexation des bénéfices futurs » dans une année d'imposition antérieure, peut demander une correction de ses déclarations de revenus antérieures pour utiliser cette méthode? / Can a taxpayer, who did not use the cost recovery method to declare the capital gain on the disposition of shares subject to an earnout agreement in a previous taxation year, request a correction of its previous years income tax returns in order to use this method?
Position Adoptée: Non / No
Raisons: La Loi. Il n'y a pas de provision dans la Loi qui permet ce type de changement. / The Law. There is no provision in the Act that allow this type of change.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:15
usual places of work of an employee (which can be multiple locations based on where the employee reports for work) is each a place of business of the employer
A construction employee is required to go from his residence to the various work sites of his employer. He works only a few days per construction...
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Principales Questions: 1. Est-ce que la position de l'ARC telle qu'émise dans l'interprétation F9611045 est toujours valide? Is the CRA position issued in the document F9611045 still valid?
2. Si oui, s'applique-t-elle à l'employé de la construction dans la situation décrite ici? If so, is that position applicable to the construction employee in the situation described here?
Position Adoptée: 1. Oui. Yes.
2. Question de fait. Question of facts.
Raisons: 1. Position constante. Voir le document F2013-0495591C6. Constant position. See document F2013-0495591C6.
2. Position antérieure. Previous position.
Principal Issues: What is the income tax treatment of amounts that are received from the Compensation for Employers of Reservists Program by employers of reservists and self-employed individuals where the sole proprietorship is a reservist and is there a requirement by the administrator of this program to prepare an information slip (i.e., T4A)?
Position: This amount would be included in income pursuant to section 9 of the Act XXXXXXXXXX.
ITR 1104(9), catégorie 29 de l'annexe II RIR, 125.1, 248(1) "scientific research & experimental development", R5202 "qualified activities", 37(1)b)
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
R&D of manufacturing company constitutes manufacturing or processing for sale use if a salable product ultimately results
The taxpayer acquired a machine which it used as part of SR&ED to create a prototype, which in turn was used in eventually commercializing a...
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Principales Questions: Aux fins de la déduction pour amortissement de la catégorie 29, est-ce qu'une immobilisation utilisée en RS&DE (machine ou matériel servant à créer un prototype), constitue un bien utilisé surtout pour la fabrication ou la transformation de marchandises en vue de la vente ou de la location? For capital cost allowance purposes under Class 29, does a capital asset (machinery or equipment used to create a prototype), constitute property to be used primarily in the manufacturing or processing of goods for sale or lease?
Position Adoptée: Oui, à condition que le contribuable qui effectue la RS&DE fabrique également le produit commercial. Yes, provided that the taxpayer who does the SR&ED also manufactures the commercial product.
Raisons: L'activité de RS&DE est une opération intégrée au processus de fabrication ou de transformation qui débute avec la RS&DE et qui se termine par la vente du produit final qui en résulte. SR&ED activity is an operation integrated to M&P process starting with SR&ED and ending with the sale of the resulting final product.
