Income Tax Severed Letters - 2014-10-15

Technical Interpretation - External

10 September 2014 External T.I. 2014-0522551E5 - Income for retired partner

CRA Tags:

  • 96(1.6), 96(1.1), 249.1(4), 34.1
Full Title: 
10 September 2014 External T.I. 2014-0522551E5 - Income for retired partner

10 September 2014 External T.I. 2014-0522551E5 - Income for retired partner -- attach -- Subsection 34.1(1)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:15
retroactive effect of s. 96(1.1) agreement to require s. 34.1(1) inclusion

The "Retired Partner" retired from a partnership of individuals (the Partnership – which had an off-calendar fiscal period ending January 31...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 96 - Subsection 96(1.1) retroactive effect of agreement to require s. 34.1(1) inclusion 270
Full Title: 
10 September 2014 External T.I. 2014-0522551E5 - Income for retired partner

10 September 2014 External T.I. 2014-0522551E5 - Income for retired partner -- attach -- Subsection 96(1.1)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
retroactive effect of agreement to require s. 34.1(1) inclusion

The "Retired Partner" retired from a partnership of individuals (the Partnership – which had an off-calendar fiscal period ending January 31...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 34.1 - Subsection 34.1(1) retroactive effect of s. 96(1.1) agreement to require s. 34.1(1) inclusion 270

Principal Issues: Does section 34.1 of the Act apply in the taxation year that a partner retires if an agreement related to a partner's retirement income is made after that taxation year.

Position: Yes.

Reasons: Subsection 96(1.6) of the Act refers to the time that a taxpayer ceases to be a member of the partnership.

25 August 2014 External T.I. 2014-0528361E5 - premium on redemption of foreign affiliate shares

CRA Tags:

  • 84(3), 93(1)
Full Title: 
25 August 2014 External T.I. 2014-0528361E5 - premium on redemption of foreign affiliate shares

25 August 2014 External T.I. 2014-0528361E5 - premium on redemption of foreign affiliate shares -- attach -- Dividend

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
redemption premium is proceeds

After noting that in 2012-0439741I7 [immediately below] "we indicate that upon redemption of MRPS [mandatory redeemable preference shares], the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 90 - Subsection 90(1) redemption premium is proceeds 82
Full Title: 
25 August 2014 External T.I. 2014-0528361E5 - premium on redemption of foreign affiliate shares

25 August 2014 External T.I. 2014-0528361E5 - premium on redemption of foreign affiliate shares -- attach -- Subsection 90(1)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:11
redemption premium is proceeds

After noting that in 2012-0439741I7 "we indicate that upon redemption of MRPS [mandatory redeemable preference shares], the redemption premium...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Dividend redemption premium is proceeds 76

Principal Issues: Whether a premium on the redemption of foreign affiliate shares is a dividend

Position: In the absence of an election under paragraph 93(1) of the Income Tax Act, the redemption proceeds are treated as proceeds of disposition.

Reasons: Application of the law related to proceeds of disposition.

22 August 2014 External T.I. 2014-0528201E5 - Northern residents travel allowance

CRA Tags:

  • 110.7(1)(a)
Full Title: 
22 August 2014 External T.I. 2014-0528201E5 - Northern residents travel allowance

22 August 2014 External T.I. 2014-0528201E5 - Northern residents travel allowance -- attach -- Subsection 110.7(1)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:18
northern resident travel allowance

A travel allowance in a new employment contract will be calculated as a fixed and identified amount per hour worked (i.e., XX% of the total hourly...

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Principal Issues: Whether a travel allowance provided for in a new employment contract would qualify as a benefit received in respect of travel expenses incurred by an employee for purposes of paragraph 110.7(1)(a) of the Act.

Position: Question of fact.

Reasons: See below.

15 August 2014 External T.I. 2014-0522541E5 - Application of 12(1)(x)

CRA Tags:

  • 12(1)(x), 127(5), 12(1)(t), 127(19), 127(11.1)(c.4), Ontario Corporations Tax Act 43.13
Full Title: 
15 August 2014 External T.I. 2014-0522541E5 - Application of 12(1)(x)

15 August 2014 External T.I. 2014-0522541E5 - Application of 12(1)(x) -- attach -- Paragraph 12(1)(t)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:17
federal apprenticeship job creation tax credit

The federal apprenticeship job creation tax credit ("AJCTC") is generally included in income under s. 12(1)(t). CRA noted:

Paragraph 12(1)(t)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) timing of receipt of apprenticeship training tax credit 75
Full Title: 
15 August 2014 External T.I. 2014-0522541E5 - Application of 12(1)(x)

15 August 2014 External T.I. 2014-0522541E5 - Application of 12(1)(x) -- attach -- Paragraph 12(1)(x)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:17
timing of receipt of apprenticeship training tax credit

The Ontario apprenticeship training tax credit ("ATTC") is generally included in income under s. 12(1)(x). After noting that a tax credit is...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(t) federal apprenticeship job creation tax credit 91

Principal Issues: Whether the federal apprenticeship job creation tax credit ("AJCTC") and the Ontario apprenticeship training tax credit ("ATTC") should be included in income under paragraph 12(1)(x)?

Position: The AJCTC is generally included in income under paragraph 12(1)(t). The ATTC is generally included in income under paragraph 12(1)(x).

Reasons: AJCTC is included under 12(1)(t); no exceptions apply to ATTC

15 August 2014 External T.I. 2014-0532941E5 - T5 reporting obligations

CRA Tags:

  • ITR 201(1)(b), 215(2), 215(1), ITR 201(2)
Full Title: 
15 August 2014 External T.I. 2014-0532941E5 - T5 reporting obligations

15 August 2014 External T.I. 2014-0532941E5 - T5 reporting obligations -- attach -- Subsection 201(1)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
T5s issued to brokers in whom debentures are registered

Opco has issued the "Debentures" in fully registered form to the resident "Brokers," who then sold them to their resident "Clients" for whom they...

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Principal Issues: Who is responsible for issuing T5 slips in respect of interest paid on debentures through agents?

Position: T5s need to be issued when interest is paid to creditor's agent and when interest is paid by creditor's agent to creditor.

Reasons: Application of section 201 of the Regulations.

8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution

CRA Tags:

  • 80(16), 61.3(1), 160(1), BIA 2 "bankrupt", 80.01(7), 61.3(3), 248(1) "bankrupt", 80(13), 80(2)(a), 248(1) "legal representative", OBCA 238, 159(1), 80.01(6), 159(2), 50(1), 159(3), 40(2)(g)(ii), 80.01(9), 80.01(8), OBCA 237
Full Title: 
8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution

8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution -- attach -- Paragraph 80(2)(a)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
meaning of "settle"

Before going on to note that the debt parking rules in ss. 80.01(6) and (8) would in any event deem the debt to be forgiven, CRA noted that in the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(8) s. 50 write-down triggers deemed forgiveness 160
Full Title: 
8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution

8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution -- attach -- Subsection 80.01(8)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:14
s. 50 write-down triggers deemed forgiveness

If the Canadian-resident "Individual" makes a s. 50(1) election respecting a loan owing to him by an insolvent CCPC of which he is the sole...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(a) meaning of "settle" 96

Principal Issues: Can a 50(1) election trigger debt forgiveness?

Position: A subsection 50(1) election may satisfy some of debt parking requirements in subsection 80.01(7).

Reasons: Application of the law.

31 July 2014 External T.I. 2014-0535011E5 - Medical expenses - Generator and vehicle expenses

CRA Tags:

  • 118.2(2) (l.2), 118.2(2)(k), 118.2(2)(l.7), 118.2(2)(m), 118.2(2)
Full Title: 
31 July 2014 External T.I. 2014-0535011E5 - Medical expenses - Generator and vehicle expenses

31 July 2014 External T.I. 2014-0535011E5 - Medical expenses - Generator and vehicle expenses -- attach -- Paragraph 118.2(2)(l.2)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:14
emergency power generator

A disabled child requires breathing equipment. Would the cost of purchasing and installing an emergency, whole-house generator to power the...

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Principal Issues: 1. Whether the cost of an automatic standby generator and vehicle expenses qualify as a medical expense for the purposes of the medical expense tax credit.

Position: 1. General comments provided.

Reasons: 1. It is a question of fact.

Technical Interpretation - Internal

15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up

CRA Tags:

  • 84(9), 93(2.01), 40(3.6), 69(5), 88(3)
Full Title: 
15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up

15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up -- attach -- Subsection 40(3.6)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:14
s. 40(3.6) does not apply to winding-up

A Canadian-resident corporation did not elect under s. 88(3.1) for the winding-up of its wholly-owned controlled foreign affiliate (CFA) to be a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) no reduction under s. 93(2.01)(a) if no exempt dividend 132
Full Title: 
15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up

15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up -- attach -- Subsection 93(2.01)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:18
no reduction under s. 93(2.01)(a) if no exempt dividend

A Canadian-resident corporation did not elect under s. 88(3.1) for the winding-up of its wholly-owned controlled foreign affiliate (CFA) to be a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.6) s. 40(3.6) does not apply to winding-up 159

Temporarily removed.

14 August 2014 Internal T.I. 2013-0506691I7 - Capital Losses - Health & Welfare Trusts

CRA Tags:

  • 3(b), 127.52(1), 111(1.1)(a)
Full Title: 
14 August 2014 Internal T.I. 2013-0506691I7 - Capital Losses - Health & Welfare Trusts

14 August 2014 Internal T.I. 2013-0506691I7 - Capital Losses - Health & Welfare Trusts -- attach -- Paragraph 111(1)(b)

Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:17
deduction by health trust of net capital losses

Are health and welfare trusts ("HWTs") permitted to incur capital losses and deduct net capital losses when computing taxable income under...

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Principal Issues: Whether a HWT is permitted to deduct net capital losses when computing taxable income under Division C and/or adjusted taxable income under Division E.1?

Position: Yes.

Reasons: See response.