We have translated 10 more CRA interpretations
21 June 2021 - 11:50pm
Email this ContentWe have published a further 10 translations of CRA interpretation released in December and November, 2007. Their descriptors and links appear below. Also referred to in the table below are 3 interpretations released last week for which we published translations on the weekend and commented on in News of Note posts.
These are additions to our set of 1,591 full-text translations of French-language severed letters (mostly, Roundtable items and Technical Interpretations) of the Income Tax Rulings Directorate, which covers all of the last 13 ½ years of releases of Interpretations by the Directorate. These translations are subject to the usual (3 working weeks per month) paywall.
| Bundle Date | Translated severed letter | Summaries under | Summary descriptor |
|---|---|---|---|
| 2021-06-16 | 23 February 2021 External T.I. 2018-0769891E5 F - 125(7) "revenu de société déterminé" | Income Tax Act - Section 125 - Subsection 125(1) - Paragraph 125(1)(a) - Subparagraph 125(1)(a)(i) - Clause 125(1)(a)(i)(B) | services income from multiple investee private corporations can be bad income for purposes of the specified corporate income - s. (a)(i)(B) safe harbour |
| Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | presumption that two 50% shareholders act together to control the corporation | ||
| Income Tax Act - Section 125 - Subsection 125(7) - Specified Corporate Income - Paragraph (a) - Subparagraph (a)(i) - Clause (a)(i)(B) - Subclause (a)(i)(B)(I) | services income from multiple private corporations referenced in s. (a)(i)(A) can be bad income for purposes of the substantially all test | ||
| 17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail | Income Tax Act - Section 49 - Subsection 49(3) | a portion of the lease payments under a lease with a bargain purchase option recharacterized as consideration for the option | |
| Income Tax Act - Section 13 - Subsection 13(5.2) | acquisition of leased vehicle pursuant to bargain purchase option followed by sale of vehicle could engage s. 13(5.2) | ||
| Income Tax Act - Section 16.1 - Subsection 16.1(1) | truck tractor is prescribed property | ||
| General Concepts - Substance | lease payments, but not the lease itself, could be recharacterized | ||
| Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) | leasing contract cannot be recharacterized as a secured loan funding an acquisition of depreciable property | ||
| Income Tax Act - Section 68 | lease payments for vehicle lease with bargain purchase option are allocated between ACB of option and deductible lease payments | ||
| 5 March 2021 External T.I. 2017-0713041E5 F - Allocation pour usage d’un véhicule à moteur | Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | it can be acceptable to cap the kilometres for which a car allowance is paid | |
| Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | unreasonably low allowance may be taxable | ||
| 2008-02-01 | 23 January 2008 External T.I. 2007-0237251E5 F - Résidence principale - Destruction d'un triplex | Income Tax Act - Section 54 - Principal Residence - Paragraph (e) | garage remaining after destruction of triplex by fire was part of the contiguous land |
| Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) | gain on triplex destroyed by fire then sold should be allocated between the personal use portion and rental portion based on relative building areas, but with years of use being pre-fire | ||
| 23 January 2008 Internal T.I. 2007-0255351I7 F - Frais médicaux - déplacement | Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(g) - Subparagraph 118.2(2)(g)(iii) | certificate should state why the physician considers that there are no adequate and appropriate medical services in the venue where the patient resides | |
| 2008-01-18 | 7 January 2008 External T.I. 2007-0225481E5 F - GRIP Addition for 2006 | Income Tax Act - Section 89 - Subsection 89(7) | GRIP addition from subsidiary resulting from 2001 and 2005 dividends |
| 11 January 2008 External T.I. 2007-0227061E5 F - Revenu imposable sociétés associées non-résidentes | Income Tax Act - Section 127 - Subsection 127(10.2) | taxable income of non-resident associated corporations, which are not taxable in Canada under s. 2(3), is ignored | |
| 7 January 2008 External T.I. 2007-0227071E5 F - GRIP Addition for 2006 | Income Tax Act - Section 89 - Subsection 89(7) | GRIP addition from subsidiary equaling its GRIP given dividends paid by it in excess of that amount | |
| 10 January 2008 External T.I. 2007-0227191E5 F - REVENUS D'UNE SOCIÉTÉ DE PERS. - PART PRIVILÉGIÉE | Income Tax Act - 101-110 - Section 103 - Subsection 103(1) | common and preferred units can be used as a mechanism for profits to be allocated to each partner’s interest (a single property) | |
| Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) | division of partnership interest into preferred and common units does not affect determination of partnership interest’s ACB | ||
| 18 January 2008 External T.I. 2007-0235131E5 F - Faux frais de déplacement | Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | Treasury Board allowance rates generally are reasonable, even when applied to entertainment | |
| 10 January 2008 Internal T.I. 2007-0254551I7 F - Provision relative à certaines marchandises | Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) - Subparagraph 20(1)(m)(i) | ss. 12(1)(a)(i) inclusion and 20(1)(m)(i) available for gift certificates sold to franchisees where goods are only tendered to franchisee, with adjustment for unredeemed certificates | |
| Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m.2) | s. 20(1)(m.2) available for returned gift certificates sold to franchisees | ||
| 10 January 2008 External T.I. 2005-0139681E5 F - Dépenses reportées à une année ultérieure | Income Tax Act - Section 9 - Timing | expense generally is deductible when incurred if it generates both current and future benefits | |
| 2007-11-30 | 14 November 2007 Internal T.I. 2007-0254601I7 F - Paiement incitatif - Bon de souscription | Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iii) | value of share purchase warrant granted to asset vendor as an inducement to agree to a longer term services agreement with purchaser was includible under s. 12(1)(x) |
| Income Tax Act - Section 52 - Subsection 52(1) | value of share purchase warrant included in recipient’s income under s. 12(1)(x) increased ACB of warrant |