Income Tax Severed Letters - 1995-08-11

Technical Interpretation - External

8 August 1995 External T.I. 9517255 - SAR AND SDA 3 YEAR DEFERRAL

Unedited CRA Tags
248(1)

Principal Issues: If a SAR becomes an SDA will 248(1) "SDA" (k) apply?

4 August 1995 External T.I. 9510465 - LOW-INTEREST LOAN BENEFIT CALCULATION

Unedited CRA Tags
80.4

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.

		951046
XXXXXXXXXX		J.A. Szeszycki

Attention: XXXXXXXXXX

August 4, 1995

Dear Sirs:

Re: Computation of Employment Benefit
Section 80.4 of the Income Tax Act

3 August 1995 External T.I. 9514155 - PRESCRIBED PRIZE

Unedited CRA Tags
56(1)(n) 7700
Summary Under
Tax Topics - Income Tax Regulations - Regulation 7700

Principal Issues:

2 August 1995 External T.I. 9516845 - H&W TRUST FOR PENSIONERS

Unedited CRA Tags
56(1)(a) 149(1)(l)

Principal Issues:
taxation of a health and welfare trust for pensioners

31 July 1995 External T.I. 9508995 - ATTENDENT CARE EXPENSE -REIMBURSEMENT OF AIR FARE

Unedited CRA Tags
64 118.2(2)(g) 118.2(2)(b) 118.2(2)(b.1) 118.2(2)(c)

Principal Issues:
whether the reimbursement of an attendant's air fare qualifies for either the medical expense tax credit or as a deduction under section 64 for attendant care

31 July 1995 External T.I. 9518505 - PUSH-DOWN ACCOUNTING & PART I.3

Unedited CRA Tags
181(3) 181(1) 181.2(3) 181.2(4)
Summary Under
Tax Topics - Income Tax Act - Section 181 - Subsection 181(3)

Principal Issues:
Whether the balance sheet amounts as adjusted by the application of "push-down accounting", as sanctioned by CICA section 1625, are to be used to determine Part I.3 tax liability.

28 July 1995 External T.I. 9509475 - MEDICAL EXPENSES AND CHARITABLE DONATIONS

Unedited CRA Tags
118.2(2) 110.1 118.1

Principal Issues:

28 July 1995 External T.I. 9503935 F - FIDUCIE DU CODE CIVIL DU QUÉBEC A DES FINS DE SURETE

Unedited CRA Tags
107(2) 75(2) 54d) 181.2(4)

Principales Questions:

Conséquences fiscales résultant de la création d'une fiducie du Code civil du Québec créée dans le seul but de garantir le remboursement d'une obligation.

Position Adoptée:

26 July 1995 External T.I. 9516225 - ALLOCATION OF CAPITAL FOR I.3 PURPOSES

Unedited CRA Tags
181.2(1) REG 8601

Principal Issues:
A "Single Purpose Corporation" which has no net income - how do you allocate to a permanent establishment for purposes of I.3 Tax (Reg. 8600) ?

26 July 1995 External T.I. 9519145 - QUALIFIED INVESTMENT IN PRIVATE CORP.

Unedited CRA Tags
REG 4900(6) REG 4900(12)

Principal Issues:

26 July 1995 External T.I. 9519455 - RRSP SPOUSAL PLAN

Unedited CRA Tags
146(8.3) 252(4)

Principal Issues:

26 July 1995 External T.I. 9516445 - TAXABLILITY OF SUPPORT PAYMENTS

Unedited CRA Tags
56(1)(c)

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.

		951644
XXXXXXXXXX	J.A. Szeszycki

Attention: XXXXXXXXXX

July 26, 1995

Dear Sirs:

Re: The Taxability of Support Payments

25 July 1995 External T.I. 9417375 - STICHTING CONSTITUE OU NON UNE CORPORATION

Unedited CRA Tags
248(1) 95(1)(d)

Principales Questions:

est-ce qu'une Stichting constitue une corporation étrangère affiliée aux fins de 95(1)(d)

Position Adoptée:

24 July 1995 External T.I. 9515905 - PARTNERSHIPS UNDER 60(J.1)

Unedited CRA Tags
60(j.1) 251(2)
Summary Under
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1)

Principal Issues:

21 July 1995 External T.I. 9506805 F - APPLICATION DE 256(2)

Unedited CRA Tags
256(2) 125 256(1)a) à e)

Principales Questions:

est-ce que le fait qu'une société ait fait le choix prévu à 256(2) empêche les sociétés associées de se partager un plafond des affaires de 200 000$

Position Adoptée:

21 July 1995 External T.I. 9516095 - NON-RECOURSE MORTGAGE

Unedited CRA Tags
4900(4) 4901(3)(a)
Summary Under
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(4)

Principal Issues:

20 July 1995 External T.I. 9504745 - DEDUCTIBILITY OF EXPENSES INCURRED AT RESORTS AND LODGES

Unedited CRA Tags
18(1)(l)
Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(i)

Principal Issues:

19 July 1995 External T.I. 9516965 - LUMP SUM MAINTENANCE PAYMENTS

Unedited CRA Tags
60(c) 56(1)(c)

Principal Issues:

19 July 1995 External T.I. 9509915 - SMALL BUSINESS CORPORATION

Unedited CRA Tags
248(1) 110.6

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.

		5-950991
XXXXXXXXXX		D. Palamar
(613) 957-8953

Attention: XXXXXXXXXX

July 19, 1995

Dear Sir,

19 July 1995 External T.I. 9504535 - SPECIFIED INVESTMENT BUSINESS

Unedited CRA Tags
125(7)

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.

5-950453
XXXXXXXXXXJ. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

July 19, 1995

Dear Sirs:

Re: Specified Investment Business

19 July 1995 External T.I. 9513915 F - CONGE SABBATIQUE

Unedited CRA Tags
REG 6801a)(v)

Principales Questions:

L'employé doit-il revenir au travail après son congé sabbatique pour une période au moins égale à son congé.

Position Adoptée:

19 July 1995 External T.I. 9516675 F - INTERETS

Unedited CRA Tags
20(1)(c) 20(3)

Principales Questions:

Argent emprunté pour rembourser un autre emprunt. Est- ce que les intérêts sont déductibles?

Position Adoptée:

19 July 1995 External T.I. 9518175 F - DEDUCTION INTERETS

Unedited CRA Tags
20(1)(c)

Principales Questions:

Argent emprunté pour acquérir une résidence qui est utilisée pour habitation seulement. Immeuble locatif donné en garantie.
Est-ce que les intérêts sur emprunt sont déductibles?

Position Adoptée:

18 July 1995 External T.I. 9500205 - EXPROPRIATION

Unedited CRA Tags
13(4) 44(1) ART XIII ART XXVI

Principal Issues:

18 July 1995 External T.I. 9518385 - OPTIONS RRSP QUALIFIED INVESTMENT

Unedited CRA Tags
146(1)

Principal Issues:

17 July 1995 External T.I. 9504135 - SPECIFIED INVESTMENT BUSINESS

Unedited CRA Tags
125(7)
Summary Under
Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business

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.

5-950413
XXXXXXXXXXJ. Teixeira
(613) 957-2095

Attention: XXXXXXXXXX

July 17, 1995

Dear Sirs:

Re: Specified Investment Business

17 July 1995 External T.I. 9517775 - WORKER'S COMPENSATION BENEFITS

Unedited CRA Tags
56(1)(v) 110(1)(f)

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.

	  	                                  951777
XXXXXXXXXX	                                   J.A. Szeszycki
(613) 957-8953
July 17, 1995

Dear XXXXXXXXXX:

Re: Worker's Compensation Benefits

17 July 1995 External T.I. 9429715 - DISAPPEARING SOURCE RULES

Unedited CRA Tags
20.1(1) 20.1(5) 20(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)

Principal Issues:
Loss of source - a partnership acb or original cost

17 July 1995 External T.I. 9515445 - RA AND PREVIOUS EMPLOYER

Unedited CRA Tags
60(j.1)

Principal Issues:
- where an employee buys back years of service with another employer (eligible under his plan) and he is now eligible for pension benefits under the plan, can he claim the additional $1,500 roll of his retiring allowance under 60(j.1)?

17 July 1995 External T.I. 9500075 - VACATION BUYING & SELLING IN A FLEX PLAN

Unedited CRA Tags
6(1)(a)

Principal Issues:

17 July 1995 External T.I. 9505095 - MEANING OF "BECAUSE OF A BEQUEST OR INHERITANCE"

Unedited CRA Tags
88(1)(d) 88(1)(d.2)
Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d.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.

		950509
XXXXXXXXXX	Jim Wilson
(613) 957-8953

Attention: XXXXXXXXXX

July 17, 1995

Dear Sirs:

14 July 1995 External T.I. 9507915 - LICENSE AGREEMENT REVENUES

Unedited CRA Tags
125(7) 125(1)
Summary Under
Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Income of the Corporation for the Year From an Active Business
licensing income is active if underlying asset was generated from licensor's active business

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.

			5-950791
XXXXXXXXXX		J. Teixeira
(613) 957-8953
July 14, 1995

Dear Sir:

Re: License Agreement Revenues

14 July 1995 External T.I. 9507975 - DEFINITION OF AUTOMOBILE

Unedited CRA Tags
248(1) 6(1)
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile

Principal Issues:

14 July 1995 External T.I. 9515585 - AT-RISK RULES FARMING BUSINESS

Unedited CRA Tags
96(2.1)

Principal Issues:

14 July 1995 External T.I. 9516865 - GROUP TERM LIFE INSURANCE POLICY AND TAXABLE BENEFITS

Unedited CRA Tags
6(1)(a) 15(1) 148

Principal Issues:
Whether or not paragraph 6(1)(a) and subsection 15(1) would apply.

13 July 1995 External T.I. 9503265 - EXEMPT STATUS - B.C. REGIONAL DISTRICTS

Unedited CRA Tags
149(1)(d) 149(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d)

Principal Issues:

13 July 1995 External T.I. 9508015 F - POS. RCI SUR L'EVALUA. D'UN BIEN (PASSIF FISC. OU NON)

Unedited CRA Tags
85(1)

Principales Questions:

position émise à la table ronde de RCI de APFF 1989-question 25

Position Adoptée:

13 July 1995 External T.I. 9511305 - 20(1)(E) EXPENSES WHERE CASH BASIS

Unedited CRA Tags
28(1) 20(1)(e)

Principal Issues:

13 July 1995 External T.I. 9515765 F - 116

Unedited CRA Tags
115(1)(b) 2(3) 53(1) 53(2)

Principales Questions:

procédures à suivre lorsqu'un non-résident dispose d'un bien canadien imposable

Position Adoptée:

13 July 1995 External T.I. 9518095 - 6363-1 FOREIGN AFFILIATES - DEF'N OF CORPORATION

Unedited CRA Tags
95 REG 5907(11)
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation

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.

		951809
XXXXXXXXXX		Olli Laurikainen
(613) 957-2116
Attention:  XXXXXXXXXX

July 13, 1995

Dear Sirs:

Re: New York Limited Liability Company

13 July 1995 External T.I. 9505185 - UK CONVENTION ART XIII - SHARES

Unedited CRA Tags
ART XIII
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 13

Principal Issues:

12 July 1995 External T.I. 9513905 F - EXEMPTION DE CAPITAL

Unedited CRA Tags
190.16(2)

Principales Questions:

Est-ce que l'exemption de capital prévue à 190.6(2) peut être attribuée à la (aux) compagnie(s) ayant une année d'imposition avec le plus grand nombre de jours?

Position Adoptée:

12 July 1995 External T.I. 9516405 - BUYING BACK PAST SERVICES

Unedited CRA Tags
60(j.1)

Principal Issues:

12 July 1995 External T.I. 9514815 - MISSING MEMBERS AND WINDUP RPP

Unedited CRA Tags
153(1)

Principal Issues:

11 July 1995 External T.I. 9419645 - TAXABLE CANADIAN PROPERTY FOR CANADIAN RESIDENT

Unedited CRA Tags
85(1)(i) 85.1(1)(a) 87(4)

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.

			5-941964
XXXXXXXXXX		Marc Ton-That

Attention: XXXXXXXXXX

July 11, 1995

Dear Sirs:

Re: Taxable Canadian property

11 July 1995 External T.I. 9517935 - NON-ELIGIBLE RETIREMENT ALLOWANCE

Unedited CRA Tags
60(j.1) 146(5) 146(5.1)

Principal Issues:

11 July 1995 External T.I. 9508235 - WORK SPACE DEDUCTIBLE AS SUPPLIES

Unedited CRA Tags
8
Summary Under
Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) - Subparagraph 8(1)(h)(iii)
Summary Under
Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(iii)
Summary Under
Tax Topics - Income Tax Act - Section 8 - Subsection 8(13)

Principal Issues:

7 July 1995 External T.I. 9512035 - RRSP EXCESS CONTRIBUTIONS

Unedited CRA Tags
204.1
Summary Under
Tax Topics - Income Tax Act - Section 204.2 - Subsection 204.2(1.2)

Principal Issues:

6 July 1995 External T.I. 9512165 - PARTNERSHIP BUTTERFLY

Unedited CRA Tags
85(2) 85(3)
Summary Under
Tax Topics - Income Tax Act - Section 85 - Subsection 85(3)

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.

		5-951216
XXXXXXXXXX	Marc Ton-That

Attention: XXXXXXXXXX

July 6, 1995

Dear Sirs:

Re: "Partnership butterfly"

5 July 1995 External T.I. 9416065 - CALCULATION OF SAFE INCOME

Unedited CRA Tags
55(5)(c)
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(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.

5-941606
XXXXXXXXXXJ. Teixeira
(613) 957-8953

Attention XXXXXXXXXX

July 5, 1995

Dear Sirs:

Re: Calculation of Safe Income

4 July 1995 External T.I. 9516855 - 55(2) AND REDEMPTION OF SHARES

Unedited CRA Tags
55(2) 55(5)(e) 55(3)(a)

Principal Issues:

29 June 1995 External T.I. 9502945 - MULTIPLE ASSIGNMENT OF SINGLE INS. POLICY

Unedited CRA Tags
118.1 110(1)

Principal Issues:

29 June 1995 External T.I. 9505535 - VALUE OF A GIFT OF INSURANCE - TERMINATION DIVIDENDS

Unedited CRA Tags
118.1 110.1(1)

Principal Issues:

26 June 1995 External T.I. 9507215 - MEDICAL EXPENSE CREDIT - HOT TUBS

Unedited CRA Tags
118.2 REG 5700

Principal Issues:

21 June 1995 External T.I. 9508425 - TERMINAL ILLNESS ADVANCE - INSURANCE

Unedited CRA Tags
9(1) 148(1)

Principal Issues:

7 June 1995 External T.I. 9502575 F - SI ENTENTE D'UTILIS. EXISTE ALORS LOGICIEL EST UNADAPTÉ

Unedited CRA Tags
212(1)(d)

Principales Questions:

position de RCI sur logiciel adapté vs prêt à l'emploi

Position Adoptée:

31 May 1995 External T.I. 9501595 F - PORTÉE DE L'EXPRESSION "A L'OCCASION DE " A 95(3)(B)

Unedited CRA Tags
95(3)(b)

Principales Questions:

signification de l'expression "à l'occasion de"

Position Adoptée:

4 May 1995 External T.I. 9511825 - SHIPPING INCOME - RESIDENTS OF GREECE

Unedited CRA Tags
81(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(c)

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.

		951182
XXXXXXXXXX		David R. Senécal

Attention: XXXXXXXXXX

May 4, 1995

Dear Sirs:

Re: Income Tax Exemption for Shipping Income of Residents of Greece

Conference

27 April 1995 Roundtable Q. 1, 9510730 - CAPITAL LOSS ON INTEREST-FREE LOAN TO FOREIGN CORP. SECTION 40(2)(g)(ii)

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.

Revenue Canada Round Table

Tax Executives Institute, Inc.

1995 Annual Canadian Tax Conference

Question #1

CAPITAL LOSS ON INTEREST-FREE LOAN TO FOREIGN CORPORATION

27 April 1995 Roundtable Q. 2, 9510740 - BUTTERFLY - TRANSFER TO PARTNERSHIP

Unedited CRA Tags
55(3.1)(c)

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.

Revenue Canada Round Table

Tax Executives Institute, Inc.

1995 Annual Canadian Tax Conference

Question #2

BUTTERFLY REORGANIZATIONS - TRANSFERS TO PARTNERSHIPS

27 April 1995 Roundtable Q. 21, 9510750 - INTERNAL ROLLOVER

Unedited CRA Tags
85(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.

Revenue Canada Round Table

Tax Executives Institute, Inc.

1995 Annual Canadian Tax Conference

Question #21
SUBSECTION 85(1) ELECTION

Technical Interpretation - Internal

13 July 1995 Internal T.I. 9512696 - XXXXXXXXXX AND MEDICAL EXPENSES

Unedited CRA Tags
118.2(2)

Principal Issues:

13 June 1995 Internal T.I. 9514227 - PAYMENT INTO COURT BY AN ESTATE FOR DECEASED'S CHILDREN SECTION 104(24)

Unedited CRA Tags
104(18) 104(6)(b) 104(13)
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24)
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(18)

Principal Issues:

31 May 1995 Internal T.I. 9508876 - RELATED EMPLOYERS FOR RETIRING ALLOWANCE

Unedited CRA Tags
60(j.1)(v)
Summary Under
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1)

Principal Issues:
Interpretation of years employed with "person related to the employer" under 60(j.1)(v).

16 May 1995 Internal T.I. 9512250 F - EMPRUNT POUR PAYER DIVIDENDES

Unedited CRA Tags
20(1)(c) 20(3)

Principales Questions:

Est-ce que les intérêts sur un emprunt effectué pour payer des dividendes sont déductibles?

Position Adoptée:

16 May 1995 Internal T.I. 9512350 F - IMPOT DES GRANDES SOCIÉTÉS

Unedited CRA Tags
181.1(3)c)

Principales Questions:

Société qui détient un immeuble pour ses actionnaires est-elle sujette à l'impôt des grandes sociétés?

Position Adoptée:

5 May 1995 Internal T.I. 9512330 F - IMPOT DES GRANDES SOCIÉTÉS

Unedited CRA Tags
181.2(3) 181(3)

Principales Questions:

Montant à utiliser pour Partie I.3 si investissement dans filiale est inscrit dans le passif selon la méthode de comptabilisation à la valeur de consolidation.

Position Adoptée:

Ministerial Letter

14 July 1995 Ministerial Letter 9517108 - FOREIGN SERVICE TRAVEL ALLOWANCES

Unedited CRA Tags
6(1)(b)

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					Y.S. 95-04688M
ADM'S OFFICE
CENTRAL RECORDS
MINISTERIAL CORRESPONDENCE SECTION
RETURN TO 15TH FLOOR, ALBION TOWERS

July 14, 1995

XXXXXXXXXX

Dear XXXXXXXXXX: