Income Tax Severed Letters - 1995-11-17

Principal Issues:

The deductibility of the cost of lottery tickets purchased by a taxpayer in the course of carrying on the business of selling these tickets to customers at a profit and the taxability of winnings on such tickets not distributed or sold to customers.

Position:

Amounts should generally be taxable/deductible as part of business carried on.

Reasons: See above

Principal Issues:

Winding up of a farming partnership under 85(3), 98(3) or 98(5) where the section 28 election has been made. Are the trade receivables to be included in the partnership's income for its final fiscal year.

Position:

No. Partnership to include in its income only amounts received or deemed received in the course of carrying on business.

Reasons:

Principal Issues:

Whether expenses incurred for a charitable golf tournament are deductible.

Whether an amount paid by a participant in or by the host corporation of the tournament to a registered charity is a gift.

Position:

Expenses for green fees or the use of the recreational facilities of the golf club are not deductible. Expenses for meals, beverages, entertainment or the use of the dining room or banquet hall would be subject to the limit provided in subsection 67.1(1), unless the tournament is a fund raising event the primary purpose of which is to benefit a registered charity.

It is a question of fact whether any gifts have been made. The full amount paid by a participant may not represent a gift and subsection 4(4) would prevent the double deducting of any amounts paid.

Reasons:

Principal Issues: General information concerning "approved" recipients of payments in respect of scientific research & experimental development

Position: Discussed paragraph 37(1)(a)(ii) in general terms.

Reasons: Prior positions taken.

Principal Issues: Change of status of RRSP spousal plan on death or marriage breakdown

Position: Restated general information

Reasons: Routine

Principal Issues:

Do contributions to the "Civil Service Retirement System" ("CSRS") in the United States qualify as "non-business-income taxes" for purposes of the foreign tax credit provisions in section 126 of the Income Tax Act (the "Act").

Position:

no

Reasons:

Principales Questions:

i)Est-ce qu'un syndicat ouvrier peut verser sans conséquences fiscales un montant forfaitaire à un syndiqué au moment de sa retraite?

ii)Est-ce qu'une somme de 100 $ versée à un syndiqué à titre de prix de présence par un syndicat ouvrier lors de ses assemblées serait non imposable pour le gagnant?

iii)Est-ce que le revenu de location provenant de la location d'une partie d'un immeuble qu'un syndicat ouvrier possède et occupe, serait non imposable?

Position Adoptée:

Principal Issues:

Principales Questions:

Principales Questions:

Est-ce qu'une somme reçue par un employé à titre d'allocation ou de remboursement des dépenses engagées pour respecter le code vestimentaire exigé par l'employeur serait imposable?

Position Adoptée:

Principal Issues:
The application of 73(3)(b) in a hypothetical situation where a 50% undivided interest in farmland is gifted to an adult child who is resident in Canada.

Principal Issues:

Principales Questions:
Le Ministère appliquera-t-il les dispositions du paragraphe 103(1) ou (1.1) de la Loi si une société de personnes est utilisée comme véhicule de gel successoral et que la participation de l'auteur du transfert dans les revenus de la société de personnes correspond à un pourcentage fixe calculé à partir de la valeur marchande du bien au moment du transfert?

Position Adoptée:
Considérant la situation décrite dans la demande d'opinion, nous sommes d'avis que la répartition du revenu ne tient pas compte de l'apport de chaque associé. Par conséquent, nous sommes d'opinion que le Ministère devrait appliquer le paragraphe 103(1.1) de la Loi afin de répartir, pour fins fiscales, le revenu de la société de personnes en fonction de l'apport de chaque associé.

Principal Issues:

Principal Issues:

Principal Issues:

Principal Issues:

Principal Issues:

Principal Issues:

deemed gain of a trust payable?

Position:

terms of trust determine what is payable.

Reasons:

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.

Canadian Petroleum Tax Society Roundtable
June 7, 1995

Question 6

SALARIES PAID OUT OF INVESTMENT INCOME

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 Roundtable
Canadian Petroleum Tax Society Conference
June 7, 1995

Question 2 - Overseas Employment Tax Credit - Part-Time Employment