Income Tax Severed Letters - 1996-01-26

Administrative Letter

24 November 1995 Administrative Letter 9527222 - WHETHER PAYMENTS ARE FOR "MAINTENANCE" OR CAPITAL

Unedited CRA Tags
60.1(2)

Principal Issues:

whether certain mortgage payments may be deducted under 60.1(2) of the Act.

Position:

In this case, the facts support that the husband agreed to pay the amount in question in exchange for the wife transferring all of her right, title and interest in and to the matrimonial home to the husband and her vacating said home. The amount is also referred to as the amount determined by the parties to accomplish a division of all assets. The mortgage which the client takes out on the home and the mortgage payments which he agrees to pay on the first mortgage secured by the wife on her second residence is for the purpose of (partially) satisfying his obligation to pay her $XXXXXXXXXX The amending agreement clearly states this hence, the payments are deductible as they represent instalments against a capital sum and not "maintenance".

Reasons:

Ministerial Correspondence

9 January 1996 Ministerial Correspondence 952924A - CASH CONCENTRATION ACCOUNTS & PART I.3

Unedited CRA Tags
181.2(3) 181.2(4) 181(3)

Principal Issues:

Technical Interpretation - External

17 January 1996 External T.I. 9530645 - CCPC SHARES IN RRSP

Unedited CRA Tags
4900(6) 4900(12)

Principal Issues:

Investment in a business corporation as a qualified investment for an RRSP

Position:

Routine reply on 4900(6) and (12) with update for October 31/95 passage of amendments

Reasons: N/A

17 January 1996 External T.I. 9520065 - BORROWINGS EFFECTIVELY CONNECTED TO A PE

Unedited CRA Tags
Article VII, Canada-US Treaty 66(15)

Principal Issues:

Whether borrowings by a US parent to acquire flow-through shares of its Canadian subsidiary would be "effectively connected" to the business carried on by the US parent through a PE in Canada.

Position:

Question of fact, generally, no.

Reasons:

17 January 1996 External T.I. 9528745 F - PRESTATION AU DÉCES VERSÉE DU VIVANT DE L'ASSURÉ

Unedited CRA Tags
148(9)(h)

Principales Questions:

1.Est-ce que l'ajout d'une clause d'option d'invalidité est une modification fondamentale qui entraînerait la disposition d'un intérêt dans une police d'assurance?

2.Est-ce que le paiement anticipé d'une prestation de décès du vivant serait exclu de la définition de "disposition" selon l'alinéa 148(9)h)?

Position Adoptée:

17 January 1996 External T.I. 9528755 F - PRESTATION AU DÉCES VERSÉE DU VIVANT DE L'ASSURÉ

Unedited CRA Tags
148(9)(h)

Principales Questions:

Demande de confirmer leur interprétation de la Loi concernant divers produits d'assurance-vie dans le cadre de situations hypothétiques impliquant des prestations au décès versées du vivant de l'assuré.

Position Adoptée:

16 January 1996 External T.I. 9529495 - SALE OF RESP, RIGHTS

Unedited CRA Tags
146.1(1)(e)

Principal Issues:

Can a subscriber sell his interest in an RESP?

Position:

No

Reasons:

16 January 1996 External T.I. 9530295 - DISCOUNTS & PREMIUMS

Unedited CRA Tags
38 9

Principal Issues:

discounts and premiums in secondary market

Position:

income\capital gain depending on investors activities.

Reasons:

16 January 1996 External T.I. 9529215 - 401(K), DOUBLE TAX IN CANADA

Unedited CRA Tags
248

Principal Issues:

Are contributions to a 401(k) plan taxed twice in Canada?

Position:

No

Reasons:

11 January 1996 External T.I. 9600415 - LEASE INDUCEMENTS RE RE-RELEASE OF SPACE

Unedited CRA Tags
12(1)(x) 9

Principal Issues:

Lease inducement payments on re-leasing of space

Position:

Amortization required over the term of the lease

Reasons:

11 January 1996 External T.I. 9521525 - EFFECT OF NET CAPITAL LOSS ON ACB OF TRUST UNITS

Unedited CRA Tags
53(2)(h)(i.1) 104(13.2)

Principal Issues:

Effect of carry-forward of net capital losses on ACB of units of unit trust.

Position:

ACB of units reduced by amount of net capital losses.

Reasons:

10 January 1996 External T.I. 9406865 - NON RESIDENT DISCRETIONARY TRUSTS

Unedited CRA Tags
75(2) 94(1) 104(4) 128.1 106

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.

			5-940686
XXXXXXXXXX		A. Godin
(613) 957-8953

Attention: XXXXXXXXXX

January 10, 1996

Dear Sirs:

Re: Foreign Trusts
Subsections 75(2) and 94(1) of the
Income Tax Act (Canada) (the "Act")

10 January 1996 External T.I. 9531645 - FARM INCOME RECEIVED BY A U.S. CHARITY - ARTICLE 21

Unedited CRA Tags
A21

Principal Issues:

Whether paragraph 3 of Article XXI of the Canada-U.S. Treaty will apply to deny the U.S. charity exemption from Canadian where the charity is receiving, among other sources, Canadian source "farm income"?

Position:

Possibly.

Reasons:

10 January 1996 External T.I. 9527665 - IRREVOCABLE BENEFICIARY UNDER INSURED RRIF

Unedited CRA Tags
146.3(2)(e)

Principal Issues:

Whether RRIF can be established to name spouse successor annuitant and children irrevocable beneficiaries upon spouse's death.

Position:

Yes

Reasons:

10 January 1996 External T.I. 9525765 - MAXIMUM CONTRIBUTIONS TO RESP

Unedited CRA Tags
146.1(2)(k) 204.9(2)

Principal Issues:

Discussion of maximum annual and lifetime payments to RESP both before and after February 20, 1990.

Position:

Discussed administrative (pre-budget) and Act's (post-budget) provisions respecting monetary limits.

Reasons:

10 January 1996 External T.I. 9528305 - IRREVOCABLE BENEFICIARY UNDER INSURED RRIF

Unedited CRA Tags
146.3(2)(e)

Principal Issues:

Whether RRIF can be established to name spouse successor annuitant and children irrevocable beneficiaries upon spouse's death.

Position:

Yes

Reasons:

10 January 1996 External T.I. 9600885 - CERTIFICATE BEFORE DISTRIBUTION

Unedited CRA Tags
159(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.

5-960088
XXXXXXXXXXJ. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

January 10, 1996

Dear Sirs:

Re:Subsections 159(2) & (3)
of the Income Tax Act (the "Act")

10 January 1996 External T.I. 9528965 - IRREVOCABLE BENEFICIARY UNDER INSURED RRIF

Unedited CRA Tags
146.3(2)(e)

Principal Issues:

Whether RRIF can be established to name spouse successor annuitant and children irrevocable beneficiaries upon spouse's death.

Position:

Yes

Reasons:

9 January 1996 External T.I. 9528925 F - PARAGRAPHE 104(2)

Unedited CRA Tags
104(2)

Principales Questions:

Application du paragraphe 104(2) à deux situations données

Position Adoptée:

9 January 1996 External T.I. 9528685 - RRSP ISSUER INTERPLEADS TO THE COURTS

Unedited CRA Tags
146

Principal Issues:

Where an RRSP Issuer interpleads the property held in an RRSP, would the transfer of property to a court result in an income inclusion to the annuitant?

Position:

No

Reasons:

5 January 1996 External T.I. 9514915 - business carried on by partnership

Unedited CRA Tags
111(5)(A)(I)

Principal Issues:

business transferred to a partnership after acquisition of control

Position:

Question of fact

Reasons:

5 January 1996 External T.I. 9527265 F - CALCUL DU REVENU GAGNÉ - DIVIDENDES VERSÉS

Unedited CRA Tags
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.

5-952726
XXXXXXXXXX Carole Pronovost
(613) 957-8953

A l'attention de XXXXXXXXXX

Le 5 janvier 1996

Mesdames, Messieurs,

Objet: Demande d'interprétation technique du paragraphe
55(2) de la Loi de l'impôt sur le revenu du Canada

4 January 1996 External T.I. 9524775 - Donation of Residual Interest

Unedited CRA Tags
118.1(1)

Principal Issues:

Whether donation of residual interest considered a gift of Canadian Cultural Property?

Position:

No.

Reasons:

4 January 1996 External T.I. 9524185 F - PARAGRAPHE 75(2)

Unedited CRA Tags
75(2) 107(2)

Principales Questions:

1- Le sous-alinéa 75(2)a)(i) s'applique-t-il si le capital de la fiducie est remis à l'auteur uniquement en vertu des dispositions du Code civil du Québec à défaut de bénéficiaire dans la fiducie et 2- les dispositions du paragraphe 107(2) s'appliqueront-elles lors de la remise de biens à l'auteur? 3- Quelles sont les conséquences fiscales pour les bénéficiaires d'une renonciation à leur participation dans la fiducie?

Position Adoptée:

4 January 1996 External T.I. 9530285 - RETIRING ALLOWANCE, OMERS, TERMINATION

Unedited CRA Tags
60(j.1) 248(1)

Principal Issues:

When is an individual entitled to the additional 1500/year under 60(j.1)(ii)(B)?

Position:

routine

Reasons:

2 January 1996 External T.I. 9527355 - RESIDENCY, DEFINITION OF SPOUSE, ETC

Unedited CRA Tags
252(3) 252(4)(a) 250(1) 146(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.

		952735
XXXXXXXXXX	S. Leung

January 2, 1996

Dear XXXXXXXXXX

Re: Definition of Spouse, Deductions by a Management Company, etc.

2 January 1996 External T.I. 9514185 - ARTICLE XIII CANADA-ISRAEL TREATY

Unedited CRA Tags
Art XIII Canada-Israel treaty

Principal Issues:

Whether par.3 of Article XIII of Canada-Israel treaty applies when a corporation alienates shares of another corporation resident in Canada

Position:

generally, no but if abuse GAAR will apply

Reasons:

21 December 1995 External T.I. 9523435 F - 104(18) avant-projet de loi

Unedited CRA Tags
104(18)

Principales Questions:

A- Les modifications apportées à un acte de fiducie entraînent-elles la création d'une nouvelle fiducie et la disposition des actifs de la fiducie? B et C - Considérant la situation factuelle donnée, un montant est-il réputé payable en vertu du paragraphe 104(18) tel que modifié par l'avant-projet de loi du 19 juillet 1995 modifiant la Loi de l'impôt sur le revenu (ci-après «l'avant-projet de loi»)? D- Confirmer que le revenu généré par le capital détenu en fiducie pour un mineur donné appartient à tous les bénéficiaires.

Position Adoptée:

20 December 1995 External T.I. 9526825 - ENTRY FEE PAYMENTS & WITHHOLDING TAX

Unedited CRA Tags
212(1)(d) 115(1)(b)(i) 116(2) 116(4) 116(5)

Principal Issues:

Whether surface lease payments are on account of capital or income and whether they are subject to withholding tax if paid to a non-resident.

Position:

Question of fact as to whether they are on account of capital or income. Subject to withholding under 212(1)(d) of the Act if on account of income and subparagraph 115(1)(b)(i) and subsections 116(2) and 116(5) apply if on account of capital.

Reasons:

19 December 1995 External T.I. 9531725 - PRODUCTION FROM THE PARTICULAR PROPERTY

Unedited CRA Tags
66.7(3)(b)(i)(C)

Principal Issues:

Would the production from infill wells qualify as "production from the particular property" for the purposes of clause 66.7(3)(b)(i)(C) of the Act where there are existing producing wells on the property which qualify for the purposes of clause 66.7(3)(b)(i)(C) of the Act.

Position:

Yes.

Reasons:

15 December 1995 External T.I. 9530105 - CAPITAL GAIN STRIPS

Unedited CRA Tags
55(2)

Principal Issues:

application of subsection 55(2) to a dividend

Position:

question of fact

Reasons:

15 December 1995 External T.I. 9530865 - SHAREHOLDER BENEFIT - IMPROVEMENTS TO BUILDING

Unedited CRA Tags
15(1)

Principal Issues:

shareholder benefit - improvements to building owned by shareholder

Position:

question of fact

Reasons:

11 December 1995 External T.I. 9501205 F - COURS DONNÉS PAR UN ORGANISME PROFESSIONNEL

Unedited CRA Tags
118.5(1)

Principales Questions:

Est-ce que les montants payés à un organisme professionnel pour des séminaires et des cours offerts soit dans le cadre d'un programme de formation continue ou soit, dans le cadre d'un autre programme de formation sont des frais de scolarité admissibles aux fins du paragraphe 118.5(1) de la Loi?

Position Adoptée:

8 December 1995 External T.I. 9415515 - PAID-UP CAPITAL REDUCTIONS- DELAWARE CORPORATIONS

Unedited CRA Tags
89(1) 53(2)(b)(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.

	 					5-941551
XXXXXXXXXX					A. Godin
(613) 957-8953

Attention: XXXXXXXXXX

November 12, 2002

Dear Sirs:

Re: Subsection 89(1) of the Income
Tax Act (Canada) (the "Act")

7 December 1995 External T.I. 9527385 F - INTÉRETS PRÉ-JUGEMENT ET PRÉ-REGLEMENT HORS COURS

Unedited CRA Tags
12(1)(c)

Principales Questions:

Demande de confirmer la position du Ministère concernant des intérêts reçus à la suite d'un congédiement injustifié.

Position Adoptée:

6 December 1995 External T.I. 9510665 - LEASE INDUCEMENT PAYMENTS

Unedited CRA Tags
9

Principal Issues:

Lease Inducememt Payments - Renewal of Lease

Position:

Required to be amortized over the term of the related lease

Reasons:

5 December 1995 External T.I. 9516145 - LEASE INDUCEMENTS

Unedited CRA Tags
12(1)(x) 9

Principal Issues:

1. rent free periods
2. lease inducement payments

Position:

1. no income or expense
2. amortization required over the term of the lease

Reasons:

5 December 1995 External T.I. 9526575 F - SENS D'EMPLOYÉ A L'EXPRESSION "ACTIONNAIRE DÉTERMINÉ"

Unedited CRA Tags
4901(2)

Principales Questions:

Est-ce qu'un administrateur d'une société doit être nécessairement considéré comme un employé de la société?

Position Adoptée:

5 December 1995 External T.I. 9519245 - DEFERRED SALARY LEAVE PLAN

Unedited CRA Tags
6801

Principal Issues:

Whether a plan meets the requirements under the ITA to be a deferred salary leave plan.

Position:

Provided regulation 6801 of the Regulations are followed to qualify it as a prescribed plan it would qualify.

Reasons:

1 December 1995 External T.I. 9527975 - RETIRING ALLOWANCE TERMINATION OF EMPLOYMENT

Unedited CRA Tags
248(1)

Principal Issues:

Can a person who retires and then rehired by the previous employer receive a retiring allowance upon retirement?

Position:

Not if they knew that thet were going to be working for the old employer before they left the employment.

Reasons:

30 November 1995 External T.I. 9527335 - overseas employ. tax credit -employment in CANADA

Unedited CRA Tags
123.1

Principal Issues:

The impact of temporary work carried on in Canada on an employee's eligibility to claim Overseas Employment Tax Credit

Position:

Work is to be taken into account for purpose of "all or substantially all" test in subsection 122.3(1) of the Act.

Reasons:

17 November 1995 External T.I. 9517355 F - 54 lorsque quitte le Canada

Unedited CRA Tags
54 245(2) Convention Barbades par. 4 et 5 Article XIV

Principales Questions:

interpretation 54 lorsque quitte canada

Position Adoptée:

15 November 1995 External T.I. 9519675 - permitted activities of mutual fund trust

Unedited CRA Tags
108(2)(A) 132

Principal Issues:

no relevant research value; taxpayer told to request ruling

Position: N/A

Reasons:N/A

1 November 1995 External T.I. 9525325 - TFRS OF PROPERTY FROM A PARTNERSHIP TO PARTNERS

Unedited CRA Tags
73(1) 98(3) 98(5)

Principal Issues:

Is 73(1) applicable for transfers of partnership property between partners who are spouses?

Position:

No

Reasons:

31 October 1995 External T.I. 9511425 - RESIDENCE OF A U.S. "S" CORPORATION

Unedited CRA Tags
art 4

Principal Issues:

Whether a U.S. "S" Corporation is a resident of the U.S. for purposes of Canada-U.S. Income Tax Convention

Position:

Yes

Reasons:

5 July 1995 External T.I. 9415285 - ROYALTIES

Unedited CRA Tags
212(1)(d) art XII U.S. treaty

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.

		941528
XXXXXXXXXX	Tim Kuss

Attention: XXXXXXXXXX

July 5, 1995

Dear Sirs:

Re: Paragraph 212(1)(d) of the Act
Article XII of the Canada-U.S. Income Tax Convention

27 June 1995 External T.I. 9510555 - LIMITED PARTNER GUARANTEED RETURN

Unedited CRA Tags
96(2.2)(d)

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.

		                                951055
XXXXXXXXXX                                Cal Brown
(613) 957 8980

Attention: XXXXXXXXXX

June 27, 1995

Dear XXXXXXXXXX

Conference

5 January 1996 CTF Roundtable, 9528260 - PRINCIPAL RESIDENCE AND CAPITAL GAINS ELECTION

Unedited CRA Tags
110.6(19) 110.6(25)

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
Canadian Tax Foundation Conference
November, 1995

Principal Residence and the Capital Gains Election

10 November 1995 CTF Roundtable, 9529570 - 55(2) CASES - NASSAU WALNUT - CPL HOLDINGS

Unedited CRA Tags
55(2)

Principal Issues:

Position with respect to recent 55(2) cases

Position:

see document

Reasons:

3 November 1995 CTF Roundtable, 9526420 - TAXABLE PREFERRED SHARES

Unedited CRA Tags
248(1) 112

Principal Issues:

amendment to articles of preferred shares

Position:

loss of grandfathered status

Reasons:

12 May 1994 ICAA Roundtable Q. 4, 9410900 - non-resident trust

Unedited CRA Tags
94(1) 75(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.

Question 4

Non-Resident Trust

6 December 1995 Roundtable Q. 10, 9530390 - GAAR AND SAFE HAVEN RULES

Unedited CRA Tags
245(2) 245(4)

Principal Issues:

safe haven rules - gaar

Position:

question of fact

Reasons:

6 December 1995 Roundtable Q. 13, 9530400 - MEANING OF "INVESTMENT BUSINESS" (PART-TIME EMPLOYEE)

Unedited CRA Tags
95(1)

Principal Issues:

Does the Department consider part-time employees in the "equivalent" test for purposes of the "investment business" definition.

Position: Yes.

(this is a different position than the Department would take with repsect to the definition of "specified investment business")

Reasons:

6 December 1995 Roundtable Q. 17, 9530510 - IS AN RCA A "PENSION" FOR PURPOSES OF CANADA-U.S. TREATY

Unedited CRA Tags
ART 18

Principal Issues:

Is an RCA a "pension" for purposes of the Canada-U.S. Treaty?

Position:

Yes. XXXXXXXXXX

Reasons:

6 December 1995 Roundtable Q. 18, 9531120 - DIVIDENDS ON SHARES HELD AS INVENTORY

Unedited CRA Tags
112(4.1) 10(1) REG 1801

Principal Issues:

whether subsection 112(4.1) results in an accrued inventory gain being included in income

Position:

yes

Reasons:

Technical Interpretation - Internal

19 January 1996 Internal T.I. 9527027 F - DÉDUCTIBILITÉ DES INTÉRETS CAPITALISÉS

Unedited CRA Tags
20(1)c)(i) 212(1)b)(vii) 78(1) 251(1)b)

Position Adoptée:
Seulement les intérêts simples sur l'emprunt initial seraient déductibles.

11 January 1996 Internal T.I. 9529286 - SEASONAL EMPLOYEES, PENSION ADJUSTMENT

Unedited CRA Tags
147.1

Principal Issues:

Can seasonal employees be exempted from having a pension adjustment?

Position:

No

Reasons:

11 January 1996 Internal T.I. 9529567 F - BIEN CERTIFIE

Unedited CRA Tags
127(9)

Principales Questions:

définition de bien certifié - 1- un bien peut-il qualifier à titre de bien certifié même s'il n'est pas mis en service? 2- interprétation du terme «ouvrage» utilisé au sous-alinéa 127(9)a)(iv) de la définition de bien certifié 3- interprétation de la limite de temps pour les biens visés par la division 127(9)a)(v)(C) de la définition de bien certifié.

Position Adoptée:

9 January 1996 Internal T.I. 9502217 F - PAIEMENT D'UN CRVI CEDE-IMPOSABLE APRES FAILLITE?

Unedited CRA Tags
56(1)(d) 56(1)(e) 56(1)(f) 56(2)

Position Adoptée:

4 January 1996 Internal T.I. 9531516 - T3D, T3P, T3S AS INFORMATION RETURNS

Unedited CRA Tags
162(7) 221(1)(d) 204(1)

Principal Issues:

Are the T3D, T3P, T3S and T3RI information returns for the purposes of applying subsection 162(7) of the Act?

Position:

Yes

Reasons:

2 January 1996 Internal T.I. 9531717 F - CONT. EXC. A UN REER

Unedited CRA Tags
204.2(1.1) 204.1(2.1)

Principales Questions:

Insuffisance de fonds dans REER - contributions excédentaires- pénalité de partie X.1 s'applique-t-elle?

Position Adoptée:

28 December 1995 Internal T.I. 9529347 - UNION OWNING SHARES

Unedited CRA Tags
149(1)(k)

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.

		December 28, 1995
	XXXXXXXXXX Tax Services Office	Headquarters
	XXXXXXXXXX	A.M. Brake
	Client Assistance			(613) 957-8953
			952934

Union Owning Shares of Corporation

14 December 1995 Internal T.I. 9531266 - WRITTEN AGREEMENT -EXERCISE FLOW-THROUGH SHARE WARRANT

Unedited CRA Tags
66(12.6) 66(15)

Principal Issues:

Whether a new written flow-through share agreement is required upon exercise of a flow-through share warrant

Position:

In the flow-through share agreement examined, a new written agreement was not required

Reasons:

29 November 1995 Internal T.I. 9526660 - RETIRING ALLOWANCES

Unedited CRA Tags
60(j.1) 56(1)(a)(ii)

Principal Issues:

Various issues relating to definition of "retiring allowance" and 60(j.1) deduction.

Position:

1) Continuing to carry out certain duties for passive holding corp w/o pay will not constitute continuing employment or office; 2) Employment with affiliate "shortly" after termination o.k. if no new employment at time of termination and payment; 3) where any part of years of service with former employer recognized under current employer's pension plan, all year of service with former employer can be included in calculation under 60(j.1); 4) "Vested" pension benefits means that the employee will receive either periodic or lump sum which includes part or all of employer contributions.

Reasons:

7 November 1995 Internal T.I. 9528117 - CAPITAL GAINS ELECTION & TRUSTS

Unedited CRA Tags
110.6(19) 104(24) 104(13)

Principal Issues:

1. Where a trust is "non-discretionary" and the residual beneficiaries are required to share equally in the capital & income of the trust, is a special provision required in the trust indenture to make the 110.6(19) deemed capital gain payable to the beneficiaries?

2. Where the 110.6(19) election has been filed with the return, but the 104(14) election has not, can the taxpayer avail themselves of proposed 104(14.01)?

Position:

1. Yes
2. No

Reasons:

3 November 1995 Internal T.I. 9523777 F - BFT-CONGÉLATION

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.

19 April 1995 Internal T.I. 9510320 - EXEMPT EARNINGS - FOREIGN EXCHANGE GAINS

Unedited CRA Tags
95(2)(a)(ii) REG 5907(1)(b) REG 5907(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.

DRAFT

REVENUE CANADA ROUND TABLE
Tax Executive Institute Conference

Question No. 31

EXEMPT EARNINGS OF A FOREIGN AFFILIATE - FOREIGN EXCHANGE GAINS