Income Tax Severed Letters - 1995-12-15

Miscellaneous

28 November 1995 Income Tax Severed Letter 9505641 - KENTUCKY LLC

Unedited CRA Tags
art 4 95(1) reg 5907(11.2)(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.

Issue Sheet
Simon Leung
file: 5-950564
November 27, 1995

Issue

Whether a LLC formed under the laws of Kentucky be considered a corporation for purposes of the Act.

Position

Yes

Rationale

Ministerial Correspondence

16 November 1995 Ministerial Correspondence 9526974 - RENOVATIONS

Unedited CRA Tags
9 20(1)(a)

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/DEPUTY MINISTER'S OFFICE 95-07216M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER

November 16, 1995

XXXXXXXXXX

Dear XXXXXXXXXX:

Technical Interpretation - External

4 December 1995 External T.I. 9526155 - CASH GIFTS AND PRESENTS BUSINESS OR EMPLOYMENT INCOME

Unedited CRA Tags
248(1) 5(1) 6(1)(a) 9(1)

Principal Issues:

Whether cash gifts and presents constitute employment or business income.

Position:

Yes either employment or business income depending on the facts.

Reasons:

30 November 1995 External T.I. 9525235 - LEGAL FEES INCURRED IN RESPECT OF SPOUSAL SUPPORT

Unedited CRA Tags
18(1)(a)

Principal Issues:

-whether legal fees incurred in connection with applications for either interim or permanent support under a provincial statute such as Ontario's Family Law Act are generally deductible and whether similar applications under the Divorce Act are not deductible

-given that repayments of support will be taxable to the recipient if they were deducted by the payor when originally paid, whether legal fees incurred by the recipient (the original payor) to recover previously paid support would be deductible

-whether opinion expressed in 942906 is contrary to views expressed above

Position:

-legal fees incurred with respect to either interim or permanent support under a provincial statute such as Ontario's Family Law Act would be deductible to the recipient of such support

-legal costs incurred with respect to a support action (interim or permanent) commenced under the Divorce Act would not be deductible

-legal fees incurred by the recipient of a reimbursement of support payments in order to recover previously paid support would not be deductible.

-no contradiction. Position that legal expenses incurred to defend against an action to reduce spousal support is deductible is not contrary to the comments found in paragraphs 16 and 17 of IT-99R4 (which comments are reflected in above opinions)

Reasons:

29 November 1995 External T.I. 9526505 - WRITE-DOWN OF ASSET WHICH IS NOT INVENTORY

Unedited CRA Tags
9 10

Principal Issues:

Can we reconcile an earlier position dealing with the write down of assets and the possible application of 18(1)(e) to the Associated Investors decision?

Position:

We maintain our earlier position re 18(1)(e).

Reasons:

28 November 1995 External T.I. 9526105 - COMPENSATION FOR REDEMPTION FEES

Unedited CRA Tags
146(2)(c.4) 146(1)

Principal Issues:

Whether an amount received by a trust governed by RRSP as compensation for redemption fees charged by a mutual fund to an investor, constitutes a contribution, a gift or a prohibited advantage to the RRSP trust.

Position:

The compensation is not an advantage, not a gift and not a contribution.

Reasons:

28 November 1995 External T.I. 9523545 - HOLDBACKS ON CONTRACTS FOR SERVICE

Unedited CRA Tags
12(1)(a) 20(1)(m)

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.

	                	5-952354
XXXXXXXXXX         	A. Seidel
(613) 957-8974

Attention: XXXXXXXXXX

November 28, 1995

Dear Sirs:

Re: Holdbacks on Contract for Services

28 November 1995 External T.I. 9505645 - KENTUCKY LLC

Unedited CRA Tags
95(1) art 4 reg 5907(11.2)(b)

Principal Issues:

whether a LLC formed under the laws of Kentucky be considered a corporation for purposes of the Act

Position:

Yes

Reasons:

28 November 1995 External T.I. 9527915 - PRIVATE HEALTH SERVICES PLANS

Unedited CRA Tags
6(1)(a)

Principal Issues:

An employer provides health care coverage for its employees. The coverage includes the payment of premiums by the employer to an insurance carrier. The coverage provided by the insurance carrier in respect of each is subject to a deductible amount of $1,500. In addition, the employer would enter into a "cost plus" arrangement with an insurance company under which health care coverage for each employee in the amount of $1,500 would be provided. To the extent that valid claims made by an employee are less than $1,500, the employer would make a payment in respect of the employee pursuant to a group retirement plan. The issue is whether a private health services plan (PHSP) can be considered to be in existence.

Position:

A PHSP does not exist.

Reasons:

27 November 1995 External T.I. 9524145 F - PASSIF A LONG TERME

Unedited CRA Tags
181.2(4)(d) 181(1) 8604

Principales Questions:

Critères permettant de déterminer si titre de créance d'une société visée au règl 8604 est dette du passif à long terme pour 181.2(4)(d)?

Position Adoptée:

24 November 1995 External T.I. 9503315 - CHINESE CO-OPERATIVE JOINT VENTURE - WHETHER CORP.

Unedited CRA Tags
95(1)

Principal Issues:

Whether a Chinese co-operative joint venture is a corporation for the purposes of the Act.

Position:

Question of fact.

Reasons:

22 November 1995 External T.I. 9526555 - RETIRING ALLOWANCE - REHIRING

Unedited CRA Tags
56(1)(a)(ii)

Principal Issues:

Whether employee remains employee or becomes independent contractor.

Position: Question of fact.

Reasons: Routine.

22 November 1995 External T.I. 9527985 - HOME BUYERS PLAN

Unedited CRA Tags
146.01

Principal Issues:

Whether couple who participated in HBP in 93 can participate again.

Position:

No

Reasons:

22 November 1995 External T.I. 9525545 - ATTENDANT CARE AND NURSING HOME CARE

Unedited CRA Tags
118.2

Principal Issues:

22 November 1995 External T.I. 9518245 - SCC EGAN & EFFECT ON SAME SEX PARTNERS HEALTH PLAN

Unedited CRA Tags
6(1)(a)

Principal Issues:

details on how to segregate one plan so that the part that qualifies as phsp will not be considered an ebp & whether SCC decision in Egan v the Queen will impact on our position

Position:

separate plans require no cross-susidization -the SCC decision upholds the OAS extended def'n of spouse so there is no reason to believe that the ITA distinction would offend the Charter

Reasons:

21 November 1995 External T.I. 9523525 - VOW OF POVERTY

Unedited CRA Tags
110(2) 8(1)(c)

Principal Issues:

Vow of perpetual poverty and possible deduction from income under subsection 110(2) by a member of a religious order.

Position:

General discussion of issues raised which included what is the Department's position regarding what is considered a religious order, the taxabilitity of certain amounts received by members of a religious order, what consititutes earned income and superannuation and pension for the purposes of 110(2).

Reasons: N/A

21 November 1995 External T.I. 9524405 - IS A SCHOOL BOARD A MUNICIPALITY?

Unedited CRA Tags
149(1)(c) 110.1(1)(a) 118.1(1) 149.1(1)

Principal Issues:

8 November 1995 External T.I. 9522985 - BEQUESTS - SHOULD RECEIPTS BE ISSUED?

Unedited CRA Tags
118.1(2) 118.1(6)

Principal Issues:

24 August 1995 External T.I. 9517035 - GIFT OF TRUST INTEREST TO A CHARITY

Unedited CRA Tags
106(2) 107(2)

Principal Issues:

donation of trust interest to charity

Position:

as stated in IT-111R

Reasons:

Conference

6 October 1995 APFF Roundtable Q. 1, 9522180 - OPINIONS ISSUED BY REVENUE CANADA

Unedited CRA Tags
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.

APFF-1995

Question 1

Opinions issued by Revenue Canada

6 October 1995 APFF Roundtable Q. 2, 9522190 - ACCOUNTING METHOD FOR PURCHASES

Unedited CRA Tags
9

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.

APFF-1995

Question 2

Method used to account for purchases

6 October 1995 APFF Roundtable Q. 3, 9522200 - ACCRUED SALARIES, VACATION PAY AND OTHER COSTS

Unedited CRA Tags
9

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.

APFF - 1995

Question 3

Treatment of accrued salaries, vacation pay and employment-related costs

6 October 1995 APFF Roundtable Q. 4, 9522210 - CAPITAL LOSS

Unedited CRA Tags
40(2)(G)

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.

APFF - 1995

Question 4

Capital loss suffered by a taxpayer as a result of the disposition of a debt owed by a foreign affiliate

6 October 1995 APFF Roundtable Q. 5, 9522220 - RIGHT TO ACQUIRE SHARES

Unedited CRA Tags
251(5)(B) 256(1.4)

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.

APFF - 1995

Question 5

Rights to acquire shares

6 October 1995 APFF Roundtable Q. 6, 9522230 - UNUSED SR&ED EXPENSES ON WINDING-UP

Unedited CRA Tags
37(1) 88(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.

APFF - 1995

Question 6

Scientific Research and Experimental Development (SR&ED)

6 October 1995 APFF Roundtable Q. 8, 9522250 - COST ACCOUNTING METHOD

Unedited CRA Tags
181(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.

APFF - 1995

Question 8

Part I.3 taxes

6 October 1995 APFF Roundtable Q. 10, 9522270 - COMPUTATION OF PAID-UP CAPITAL AND ACB

Unedited CRA Tags
87(3) 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.

APFF - 1995

Question 10

Computation of paid-up capital and adjusted cost base of shares following an amalgamation

6 October 1995 APFF Roundtable Q. 11, 9522280 - TAX SHELTERS

Unedited CRA Tags
152 237

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.

APFF - 1995

Question 11

Tax shelters

6 October 1995 APFF Roundtable Q. 12, 9522290 - LOSSES OF A LIMITED PARTNERSHIP

Unedited CRA Tags
102(2) 96 111(1)(E)

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.

APFF - 1995

Question 12

Limited partnerships

6 October 1995 APFF Roundtable Q. 15, 9522310 - MANUFACTURING AND PROCESSING PROFITS DEDUCTIONS

Unedited CRA Tags
125.1

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.

APFF - 1995

Question 15

Tax credit for manufacturing and processing profits

6 October 1995 APFF Roundtable Q. 17, 9522330 - CAPITAL GAIN PAYABLE

Unedited CRA Tags
104(24) 104(21) 110.6(19)

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.

APFF - 1995

Question 17

Application of the provisions of subsections 104(21) and 104(21.2) of the Act - crystallizing the capital gains deduction for eligible small business shares

6 October 1995 APFF Roundtable Q. 18, 9522340 - LETTER OF CREDIT AND RETIREMENT COMPENSATION ARRANGEMENT

Unedited CRA Tags
207.5 153(1.1)

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.

APFF - 1995

Question 18

Letter of credit and retirement compensation arrangement

30 August 1995 APFF Roundtable Q. 19, 9522350 F - ALIMENTS ET BOISSONS CONSOMMÉS PAR DES EMPLOYÉS

Unedited CRA Tags
67.1(2)d) 6(6) 67.1(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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1995

Question 19

Aliments et boissons consommés par des employés

6 October 1995 APFF Roundtable Q. 20, 9522360 - AMALGAMATION AND BUTTERFLY TRANSATIONS

Unedited CRA Tags
55(3.1)(a)

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.

APFF - 1995

Question 20

Butterfly transactions

Ms. X, Ms. Y et Ms. Z want to divide up the assets of Opco I and Opco II and continue on their respective ways.

6 October 1995 APFF Roundtable Q. 21, 9522370 - ADMINISTRATIVE POLICIES

Unedited CRA Tags
55

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.

APFF - 1995

Question 21

Subsection 55(2) of the Act

Revenue Canada’s administrative policies and interpretations of subsection 55(2) of the Act have been seriously undermined by two recent rulings:

6 October 1995 APFF Roundtable Q. 22, 9522380 - PURCHASE OF SHARES AND GAAR

Unedited CRA Tags
245(2) 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.

APFF - 1995

Question 22

Purchase of shares from a co-owner - general anti-avoidance rule

7 September 1995 APFF Roundtable Q. 23, 9522390 F - CRÉDIT D'IMPOT POUR PERSONNES HANDICAPÉES - COTISATION

Unedited CRA Tags
118.3 118.4

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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1995

Question 23

Nouvelle cotisation à l'égard du crédit d'impôt pour personnes handicapées

6 October 1995 APFF Roundtable Q. 24, 9522400 - PERSONAL LIABILITY INSURANCE COVERING DIRECTORS

Unedited CRA Tags
6(1)(a)

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.

APFF - 1995

Question 24

Personal liability insurance covering the directors of a corporation

Corporate directors are frequently covered by personal liability insurance (environment, salaries, taxes, etc.)

6 October 1995 APFF Roundtable Q. 26, 9522420 - SHARES SOLD UNDER EARNOUT CLAUSE

Unedited CRA Tags
12(1)(g)

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.

APFF - 1995

Question 26

Paragraph 12(1)(g) of the Act

6 October 1995 APFF Roundtable Q. 27, 9522430 - CORPORATIONS DEEMED TO BE ASSOCIATED

Unedited CRA Tags
256(2.1)

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.

APFF - 1995

Question 27

McAllister Drilling Inc. decision

6 October 1995 APFF Roundtable Q. 29, 9522450 - ELECTION UNDER SECTION OF THE ACT

Unedited CRA Tags
216

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.

APFF - 1995

Question 29

Election under section 216 of the Act

6 October 1995 APFF Roundtable Q. 30, 9522730 - BENEFIT CONFERRED ON SHAREHOLDER

Unedited CRA Tags
15(1) 69(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.

APFF - 1995

Question 30

Subsection 15(1)

30 August 1995 APFF Roundtable Q. 31, 9522470 F - EXERCICE DES PROFESSIONS DE MÉDECINS ET DENTISTES

Unedited CRA Tags
9 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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1995

Question 31

Exercice des professions de médecins et dentistes

6 October 1995 APFF Roundtable Q. 32, 9522440 - FAPI RULES

Unedited CRA Tags
95(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.

APFF - 1995

Question 32

FAPI rules

6 October 1995 APFF Roundtable Q. 33, 9522490 - CLASS OF SHARES AND PAID-UP CAPITAL

Unedited CRA Tags
89(1) 248(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.

APFF - 1995

Question 33

Share classes

6 October 1995 APFF Roundtable Q. 34, 9522500 - CONTINGENT LIABILITY

Unedited CRA Tags
18(1)(e)

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.

APFF - 1995

Question 34

Contingency reserves

30 August 1995 APFF Roundtable Q. 35, 9522510 F - PRET A L'HABITATION

Unedited CRA Tags
15(2.4) 15(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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1995

Question 35

Prêt à l'habitation

30 August 1995 APFF Roundtable Q. 37, 9522530 F - DON D'OEUVRES D'ART

Unedited CRA Tags
118.1

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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE
APFF - CONGRES 1995

Question 37

Don d'oeuvres d'art

6 October 1995 APFF Roundtable Q. 38, 9522540 - CREDITOR PROTECTION AND BUTTERFLY TRANSACTIONS

Unedited CRA Tags
55(2) 55(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.

APFF - 1995

Question 38

Creditor protection and subsection 55(2)

6 October 1995 APFF Roundtable Q. 40, 9522550 - CAPITAL PROPERTY

Unedited CRA Tags
54 85(1) 9

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.

APFF - 1995

Question 40

Transfers of property to a subsidiary for later sale by the subsidiary

6 October 1995 APFF Roundtable Q. 41, 9522560 - MEALS CONSUMED - GOLF COURSE

Unedited CRA Tags
18(1)(l) 67.1

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.

APFF - 1995

Question 41

Meals consumed following a round of golf

6 October 1995 APFF Roundtable Q. 43, 9522580 - ALLOWABLE BUSINESS INVESTMENT LOSS (ABIL)

Unedited CRA Tags
39(1)(C) 50(1) 84(9) 245(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.

APFF - 1995

Question 43

Business investment losses

6 October 1995 APFF Roundtable Q. 45, 9522720 - GAAR

Unedited CRA Tags
245(2) 84.1

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.

APFF - 1995

Question 45

General Anti-avoidance Rule and section 84.1

Would the Department apply subsection 245(2) of the Act in the following situation?

6 October 1995 APFF Roundtable Q. 47, 9522740 - SYNDICATE OF CO-OWNERS - CONDOMINIUMS

Unedited CRA Tags
248(1) corporation 149(1)(l) 150(1) 149(12)

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.

APFF - 1995

Question 47

Syndicate of owners of a residential condominium

6 October 1995 APFF Roundtable Q. 48, 9522750 - INPUT TAX CREDIT REBATES

Unedited CRA Tags
248(16) 12(1)(x)

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.

APFF - 1995

Question 48

Input tax credit rebates

6 October 1995 APFF Roundtable Q. 49, 9522780 - STOCK OPTIONS

Unedited CRA Tags
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.

APFF - 1995

Question 49

Follow-up to question 7 from the 1994 Round Table on the Federal Taxation

6 October 1995 APFF Roundtable Q. 50, 5M11660 - CAPITAL GAIN ELECTION - PRINCIPAL RESIDENCE

Unedited CRA Tags
110.6(19) 54

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.

APFF - 1995

Question 50

Capital gains elections involving land of more than 1/2 hectare

Technical Interpretation - Internal

22 November 1995 Internal T.I. 9526637 - reimbursement for above ground pool

Unedited CRA Tags
6(1)(A)

Principal Issues:

whether reimbursement for loss suffered on relocation results in a taxable benefit. Employee was compensated for loss on abandonment of a 24 ft. above ground swimming pool

Position:

results in benefit under 6(1)(a)

Reasons:

22 November 1995 Internal T.I. 9515087 F - CHALET-HOTEL ET PAVILLON

Unedited CRA Tags
18(1)(l)

Principales Questions:

Dans les différentes situations présentées, est-ce que les dépenses sont engagées pour l'usage ou l'entretien d'un pavillon ou d'un chalet-hôtel au sens du sous-alinéa 18(1)l)(i) de la Loi lorsque ces biens sont utilisés par des contribuables pour des fins de promotion de leur entreprise telles le divertissement ou les loisirs de clients, de fournisseurs, d'actionnaires ou d'employés?

Position Adoptée:

14 November 1995 Internal T.I. 9524846 - consequential assessment

Unedited CRA Tags
152(4.3)

Principal Issues:

12 October 1995 Internal T.I. 9525030 - SURPLUS STRIPS

Unedited CRA Tags
84.1 245(2)

Principal Issues:

Application of Section 84.1 to factual non-arm's length situations

Position:

it applies

Reasons:

4 October 1995 Internal T.I. 9521497 - CCA ON DECEASED'S RETURN

Unedited CRA Tags
70(5) 70(6) REG 1100(2.5)

Principal Issues:

- does reg. 1100(2.5) apply to the beneficiary of a property acquired under ss 70(5) or 70(6)?

Position:

yes

Reasons:

8 September 1995 Internal T.I. 9516536 - ITC AMALGAMATION

Unedited CRA Tags
87(2)(OO) 127(10.1)

Principal Issues:

30 June 1995 Internal T.I. 9514457 - special purpose trust & taxable benefit from a trust

Unedited CRA Tags
105(1) 149(1)(l)

Principal Issues:

1. How is a Special Purpose Trust set up to benefit an ill or disabled person taxed ?
2. Would payments made to the parent or guardian of a minor for trust approved expenses (for health, welfare, security & education) be taxable to the parent/guardian under 105(1)?

Position:

1. As an inter vivos trust
2. Question of fact

Reasons: