Income Tax Severed Letters - 1996-09-06

Ruling

2096 Ruling 9608103 - XXXXXXXXXX HEALTH CARE SPENDING ACCOUNT

Unedited CRA Tags
6(1)(a)

Principal Issues:

whether health care spending account is a phsp

Position:

yes

Reasons:

2096 Ruling 9611273 - XXXXXXXXXX INCENTIVE PLAN

Unedited CRA Tags
7 5(1)

Principal Issues:

Whether agreement to issue shares for no consideration to employees if they remain continuously employed for a certain number of years results in taxable benefit in year of agreement or in year shares issued.

Position:

Taxable benefit under section 7 in year shares are issued.

Reasons:

2096 Ruling 9612873 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

2096 Ruling 9613163 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

24 June 1996 Ruling 9608073 - WHETHER ORGANIZATION CURRENTLY EXEMPT?

Unedited CRA Tags
149(1)(L)

Principal Issues:

Requested to rule that organization will continue to be exempt under paragraph 149(1)(l) after proposed incorporation.

Position:

Taxpayer asked to establish that organization qualified for exemption prior to proposed incorporation.

Reasons:

13 February 1996 Ruling 9604493 - RETIRING ALLOWANCE XXXXXXXXXX

Unedited CRA Tags
60(j.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.

									960449
XXXXXXXXXX							M.P. Sarazin

February 13, 1996

Dear XXXXXXXXXX

Re: XXXXXXXXXX
Advance Income Tax Ruling 953211, dated XXXXXXXXXX

30 November 1995 Ruling 9606503 - LETTER OF CREDIT, RCA

Unedited CRA Tags
248(1)

Principal Issues:

Funding an RCA with a letter of credit that reduces the employer's line of credit which is secured by future revenue streams.

Position:

The contribution to the RCA is twice the fee payable for the letter of credit; the security will not constitute a contribution to the RCA.

Reasons:

Technical Interpretation - External

9 September 1996 External T.I. 6M12445 - PHSP SAME SEX COUPLES

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.

XXXXXXXXXX

September 9, 1996

Dear XXXXXXXXXX

We are writing further to our recent telephone conversation concerning the definition of a private health services plan for the purpose of the Income Tax Act.

3 September 1996 External T.I. 9618075 - TRANSFER OF A LIFE INSURANCE POLICY TO A CHILD

Unedited CRA Tags
148(8)

Principal Issues:

Whether subsection 148(8) would apply to allow a rollover where a policyholder's interest in a life insurance policy on the life of a child of the policyholder is transferred to the child on the death of the policyholder by virtue of a successive owner designation made under subsection 199(1) of the Insurance Act (Ontario).

Position:

Yes.

Reasons:

30 August 1996 External T.I. 9610555 - GENERAL PARTNERS TREATED AS LIMITED PARTNERS

Unedited CRA Tags
96(2.4)(b)

Principal Issues:

Would certain representations and indemnities given by a vendor of general partnership units be "amounts or benefits" the purchaser is entitled to receive or obtain as described in paragraph 96(2.2)(d) with the consequence that the partner would be treated as a limited partner by reason of paragraph 96(2.4)(b)?

Position:

No firm position taken. Write in for a ruling on a live deal, if desired.

Reasons:

28 August 1996 External T.I. 9624535 F - FRAIS DE STATIONNEMENT DES ASSOCIÉS

Unedited CRA Tags
18(1)(a) 18(1)(h0 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.

									5-962453
XXXXXXXXXX							Michel Lambert

A l'attention de XXXXXXXXXX

Le 28 août 1996

Mesdames, Messieurs,

Objet: Déductibilité des frais de stationnement
des associés par une société de personnes

19 August 1996 External T.I. 9610475 - EMPLOYEE REIMBURSEMENT ON MOVING-COST OF HOME

Unedited CRA Tags
6(1)(a)

Principal Issues:

reimbursement of actual loss on disposition of home by employee upon job-related relocation -does cost of home include capital renovations

Position:

yes but not repairs or maintenance

Reasons:

19 August 1996 External T.I. 9618095 - MAINTENANCE PAYMENTS

Unedited CRA Tags
60(b) 60.1(2)

Principal Issues:

Taxability/deductibility of amounts received/paid pursuant to an interim separation agreement in two scenarios provided by writer.

Position:

The taxability/deductibility of payments vary depending on the actual terms of the court order. The courts have considered the situation where the governing document (decree, order or judgement of a competent tribunal or a written agreement) provides that the payer must pay the tax payable on the allowance in addition to the allowance itself, and determined that the tax payable will be considered part of the allowance and will be deductible as well.

Third party payments may qualify provided that the provisions of described in subsections 60.1(2) and 56.1(2) of the Act are met.

There is the possibility of a deduction as a medical expense, of the tuition costs. This will be a question of fact, individual determination required. Insufficient info provided to make any more than general comments.

Reasons:

16 August 1996 External T.I. 9618015 - WRONGFUL DISMISSAL SETTLEMENT

Unedited CRA Tags
248(1)

Principal Issues:

whether damages for wrongful dismissal, loss of reputation, aggravated damages, punitive damages and mental distress are a retiring allowance

Position: represents a retiring allowance

Reasons:

15 August 1996 External T.I. 9616185 - WHICH RETURN FOR INC FOR FPE -> DATE OF BANKRUPTCY

Unedited CRA Tags
128(2)(f) 128(2)(e)

Principal Issues:

who reports the business or professional income of a bankrupt for the period which straddles the date of assignment into bankruptcy

Position:

depends on whether it is the trustee or the individual who carries on the business -if the case of a professional service where it is likely the bankrupt who carries on the business, the income is reported in the return filed by the bankrupt for the period commencing with the bankruptcy (the post-bankruptcy return). If it is the trustee, it is the return which is colloquially called the in-bankruptcy return.

Reasons:

9 August 1996 External T.I. 9623635 - Fuel storage tanks

Unedited CRA Tags
CLASS 6(e)

Principal Issues:

Appropriate Class for underground Gasoline and Diesel fuel oil storage tanks at retail service stations.

Position:

Class 6(e) which refers to an oil or water storage tank.

Reasons:

8 August 1996 External T.I. 9616635 - NO ATTRIBUTION ON THE RETURN OF PROPERTY TO A SPOUSE

Unedited CRA Tags
74.1 74.5 74.5(11)

Principal Issues:

attribution on a return of property to the spouse who originally acquired the property

Position:

no reverse attribution as the return of property is not a transfer of property

Reasons:

19 July 1996 External T.I. 9623895 - DEFERRED SALARY LEAVE PLAN

Unedited CRA Tags
REG 6801

Principal Issues:

Is plan acceptable under 6801

Position:

No

Reasons:

16 July 1996 External T.I. 9622385 - RETIRING ALLOWANCE TRANSFERS

Unedited CRA Tags
60(j.1)

Principal Issues: Transfer of retiring allowance

Position: Routine reply

Reasons: Routine information provided

15 July 1996 External T.I. 9620115 - MUTUAL FUND CAPITAL PAYOUTS

Unedited CRA Tags
248(1) 53

Principal Issues:

Effect of principal payouts on cost amount of mutual fund units

Position:

Explained provisions on adjusting ACB (cost amount) of units

Reasons:

12 July 1996 External T.I. 9623005 - CASH BONUS AND STOCK OPTION

Unedited CRA Tags
7(3)

Principal Issues:

Will a cash bonus be tainted if its linked to a stock option but the employee is free to use it as he or she wishes

Position:

Based on 1990 statement but extended to clarify employee must not be under obligation to exercise the option either

Reasons:

10 July 1996 External T.I. 9616455 F - COTISATIONS RÉGIME DE PENSION AGRÉÉ

Unedited CRA Tags
147.2(4)(a)

Principales Questions:

147.2(4)a) applicable lorsque la cotisation est versée par assurance invalidité?

Position Adoptée:

5 July 1996 External T.I. 9620605 F - RETENUE D'IMPOT SUR RISTOURNES PAYÉES AUX CLIENTS

Unedited CRA Tags
135(4) 135(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.

XXXXXXXXXX							7-962060
A. St-Amour

A l'attention de XXXXXXXXXX

Le 5 juillet 1996

Monsieur,

Objet: Ristourne

25 June 1996 External T.I. 9619565 - DEDUCTIBILITY OF INTEREST FROM DATE OF BANKRUPTCY

Unedited CRA Tags
20(1)(c)

Principal Issues:

Is interest on unpaid claims deductible on an annual basis as provided for in section 143 of the Bankruptcy and Insolvency Act

Position:

Not deductible until it is determined that a surplus exists after the payment of all claims - prior to that time, it is a contingent liability

Reasons:

10 June 1996 External T.I. 9615105 - TAXBLE PREFERRED SHARES - ALPHABET SHARES

Unedited CRA Tags
248(1)

Principal Issues:

Whether "alphabet shares" are taxable preferred shares.

Position:

They could be.

Reasons:

22 February 1996 External T.I. 9605845 - ADJUSTED COST BASE OF PARTNERSHIP INTEREST

Unedited CRA Tags
53(1)(e)(i) 53(2)(c)(i)

Principal Issues:

Is the grandfathering treatment in file #952849 regarding the change in position for the timing of adjustments to the adjusted cost base of partnership interests limited to the situation described therein?

Position:

Yes.

Reasons:

7 February 1996 External T.I. 9528545

Principal Issues:

none-refused to opine.

Position:

Reasons:

Technical Interpretation - Internal

14 August 1996 Internal T.I. 9622997 - RRIF PAYMENTS AFTER DEATH OF ANNUITANT

Unedited CRA Tags
146.3

Principal Issues:

reporting of withholding on rrif payments

Position:

no RCT position on payments after death of last annuitant

Reasons:

30 July 1996 Internal T.I. 9625877 F - PRESTATION DE LA CSST

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

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.

							July 30, 1996
	Business Returns Processing			Rulings Directorate  
	  Division					Michel Lambert
Mr. R. Ouimet					957-8953
	Director
							7-962587

An Act Respecting Industrial Accidents and
Occupational Diseases
Worker's Compensation - Form T5007

15 May 1996 Internal T.I. 9617250 - CONTRIBUTION TO FOREIGN SOCIAL SECURITY PLAN

Unedited CRA Tags
56(1)(a)(i) ART 17 CANADA-U.K. Treaty

Principal Issues:

Whether there is a deduction for a contribution to a foreign government pension plan.

Position:

No.

Reasons:

Ministerial Letter

13 August 1996 Ministerial Letter 9626508 - DETERMINATION BY COURT

Unedited CRA Tags
173

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/QUESTION

24 July 1996 Ministerial Letter 9622278 - taxation of group term life insurance premiums

Unedited CRA Tags
6(1)(a) 6(4) reg 2700

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.

DM'S OFFICE (2) 96-04510M
ASSOCIATE DEPUTY MINISTER (1)
ADM'S OFFICE (3)
PENDING
RETURN TO INCOME TAX RULINGS
AND INTERPRETATIONS DIRECTORATE
15TH FLOOR, ALBION TOWER

							July 24, 1996

XXXXXXXXXX

Dear XXXXXXXXXX

24 July 1996 Ministerial Letter 9622848 - AUDITOR GENERAL'S REPORT ON FAMILY TRUSTS

Unedited CRA Tags
104(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.

MINISTER/DM'S OFFICE 96-04656M
ADM'S OFFICE

RETURN TO RULINGS, 15TH FLOOR, 25 NICHOLAS ST.

PENDING

July 24, 1996

XXXXXXXXXX

Dear XXXXXXXXXX