We have translated 10 more CRA severed letters

We have published 2 translations of CRA severed letters released last week and a further 8 translations of CRA interpretation released in February and January of 2005. Their descriptors and links appear below.

These are additions to our set of 2,014 full-text translations of French-language Technical Interpretation and Roundtable items (plus some ruling letters) of the Income Tax Rulings Directorate, which covers all of the last 17 ¼ years of releases of such items by the Directorate. These translations are subject to our paywall (applicable after the 5th of each month).

Bundle Date Translated severed letter Summaries under Summary descriptor
2022-04-20 16 July 2020 Internal T.I. 2019-0817271I7 F - Indemnités reçues à la suite de la négociation Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) compensation paid to land owners for their restoration of the portion of their lands not sold to the government would be a s. 12(1)(x) receipt
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(f) compensation for damages to depreciable property would be included under s. 12(1)(f) rather than under proceeds of disposition, but the related repaid expenses would be deductible
Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (e) compensation for loss of value to lands left after the government agreed to purchase a portion thereof, would constitute proceeds of disposition of such remainder
2020 Ruling 2020-0848081R3 F - Subsection 104(4) and pipeline transaction Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction implemented after a discretionary inter vivos trust voluntarily realizes capital gains on its 21st anniversary
2005-02-04 26 January 2005 Internal T.I. 2004-0101351I7 F - Déduction pour frais juridiques - Alinéa 60o) Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose legal costs of disputing GST or sales tax assessments of a business are deductible
Income Tax Act - Section 60 - Paragraph 60(b) legal fees incurred in disputing sales tax assessments are not included
27 January 2005 Internal T.I. 2004-0103531I7 F - Dommages Intérêts art.1618- 1619 CCQ Income Tax Act - Section 9 - Compensation Payments Irving Oil applied to find that interest on damages received to compensate for additional costs incurred in a construction business, was business income
Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss - Paragraph (b) - Subparagraph (b)(ii) interest on damages received to compensate for a business loss, was business income
2 February 2005 Internal T.I. 2005-0111961I7 F - Reassessment of a Partner Income Tax Act - Section 152 - Subsection 152(1.4) CRA can assess a partner directly to change the partnership income allocable to it rather than being required to make a partnership-level determination under s. 152(1.4)
2005-01-28 19 January 2005 External T.I. 2004-0075601E5 F - Fiducie de fonds commun de placement Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) no ACB reduction from distribution of ordinary income or capital gain (cf. ROC distribution) irrespective whether effected as cash or unit distribution
Income Tax Act - Section 248 - Subsection 248(25.3) cost under s. 248(25.3) for distribution of ordinary income or capital gain made as units distribution
19 January 2005 External T.I. 2004-0081001E5 F - Réserve de valorisation d'une coopérative Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage question of fact whether distributions of enhancement reserves are allocations in accordance with patronage
Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(b) enhancement reserve of Quebec cooperative added to capital
6 January 2005 External T.I. 2004-0087221E5 F - Modification de la déclaration d'une société Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) return amendment should be requested where a capital gain has been unreported due to a missed ROC distribution
24 January 2005 External T.I. 2004-0099471E5 F - Convention de retraite pour un actionnaire-employé Income Tax Act - Section 67 81 Roundtable position on shareholder-manager compensation also applies to RCA contributions
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(r) no deduction regarding pre-incorporation services, and longstanding CRA position re shareholder-manager compensation
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(x) Part XI.3 tax and s. 56(1)(x) income inclusion apply even where RCA contribution is partially or fully non-deductible
Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement a significant reduction in bonus or salary matched by an RCA contribution likely suggests it instead is an SDA
20 January 2005 External T.I. 2004-0104921E5 F - RPDB et déficit cumulé Income Tax Act - Section 147 - Subsection 147(1) - Profit Sharing Plan corporation with an accumulated deficit is not precluded from registering a DPSP