Income Tax Severed Letters - 1997-02-21

Ruling

30 November 1996 Ruling 9641303 - XXXXXXXXXX

Unedited CRA Tags
20(1)(c) 18(4)

Principal Issues:

Amendment to Ruling 963802

Position:

1.Amount to be borrowed increased to $XXXXXXXXXX - this amount may change but this is the amount currently estimated.

2.Slight change to wording in ruling.

3.Time extension to XXXXXXXXXX

Reasons:

30 November 1995 Ruling 9634873 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

30 November 1995 Ruling 9636543 - 147.2(2) EMPLOYEE OF PREDECESSOR

Unedited CRA Tags
147.2(2)
Summary Under
Tax Topics - Income Tax Act - Section 147.2 - Subsection 147.2(2)

Principal Issues:

Can an employer take a deduction under 147.2(2) with respect to employees of a predecessor employer?

Position:

Yes

Reasons:
XXXXXXXXXX

30 November 1995 Ruling 9638023 - XXXXXXXXXX

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

Principal Issues:

Interest deduction - whether the method of determining the interest rate would make this a participating loan.

Position:

No

Reasons:

30 November 1995 Ruling 9620713 - 15(1) DIVIDEND REINVESTMENT

Unedited CRA Tags
15(1)246(1)

Principal Issues:

A previous ruling was issued based on our administrative position that a XXXXXXXXXX% discount on shares issued pursuant to a dividend investment plan would not result in the application of subsection 15(1). The benefit could not be excluded by paragraph 15(1)(c) since not all shareholders were able to exercise that right (the U.S. shareholders were not able to do so because the shares were not listed in the U.S.). An amendment to add a class of shares to the plan was proposed and the same ruling was requested.

Position:

Since shares could now be issued to U.S. residents (shares now listed in the U.S.), the subsection 15(1) ruling was provided on the basis that paragraph 15(1)(c) would exclude the benefit.

Reasons: Wording of provision

30 November 1995 Ruling 9639563 - SUPPLEMENTARY

Unedited CRA Tags
55(3)(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.

XXXXXXXXXX							3-963956
XXXXXXXXXX

Attention XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: XXXXXXXXXX
advance income tax ruling 3-962947
dated XXXXXXXXXX, 1996 (the "Ruling)

30 November 1995 Ruling 9621423 - CAN A TAX TREATY RESULT IN A GREATER TAX LIABILITY?

Unedited CRA Tags
ART 27

Principal Issues:

Does paragraph 4 of Article XXVII of the Canada-UK Income Tax Convention apply to force Canada to treat such a transaction as a dividend in circumstances where we are not dealing with an ordinary dividend but instead a capital transaction.

Position:

No if the result is the Canadian resident is subject to more Canadian tax than he would have been had there not been a treaty.

Reasons:

30 November 1995 Ruling 9621433 - rpp deduction, privatization

Unedited CRA Tags
147.2(2)

Principal Issues:

Can deductions be made for contributions to an RPP for benefits accrued while XXXXXXXXXX was tax exempt XXXXXXXXXX rpp?

Position:

Yes

Reasons:

30 November 1995 Ruling 9640083 F - APPLICATION OU NON DE SECTION SI DIVIDENDES INSUFFISANTS

Unedited CRA Tags
ART 110.6(8) ART 55(2) ART 51(1) ART 84(3) ART 85(1)

Position Adoptée:

30 November 1995 Ruling 9626763 - REDUCTION OF PAID-UP CAPITAL

Unedited CRA Tags
84(4) 53(2)(a)(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.

XXXXXXXXXX							3-962676
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: XXXXXXXXXX

Technical Interpretation - External

6 February 1997 External T.I. 9502185 - SAFE INCOME, PART IV

Unedited CRA Tags
55(2) 186(1)(b)

Principal Issues: circularity and safe income calculation

Position:none taken as yet

Reasons:under review for policy implications

5 February 1997 External T.I. 9635625 - FOREIGN AFFILIATES - RELEVANT, LIABILITY FOR TAX

Unedited CRA Tags
95(2)(a)(ii)(D)
Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(D)

Principal Issues:

Whether interest deducted by a group of affiliates in computing income from a particular source under the tax laws of the country in which the affiliates are resident would be considered "relevant in computing the liability for income tax" for the purposes of clause 95(2)(a)(ii)(D), if no income tax would have been payable in the foreign country in respect of such income source even if the interest had not been deducted against such income.

Position:

Yes.

Reasons:

5 February 1997 External T.I. 9611725 - FOREIGN AFFILIATE - FACTORING BUSINESS

Unedited CRA Tags
95(2)(a)
Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(i)
notional excess cash of mothership not used in its business

Principal Issues:

Whether incidental income of a foreign affiliate from a non-arm's length factoring business can be deemed to be income from an active business.

Position:

Question of fact.

Reasons:

29 January 1997 External T.I. 9626495 - POTENTIAL SWISS BANK ACCOUNT

Unedited CRA Tags
12(1)(c) 94(1) 212(1)(c)

Principal Issues:

Tax Implication of having an interest in a Swiss Bank account created in the Nazi's reign in Germany

Position:

General views on the tax treatment of income earned in such a bank account

Reasons:N/A

28 January 1997 External T.I. 9634125 - REG CLINICAL COUNSELLORS OF BC AS MEDICAL PRACTIT

Unedited CRA Tags
118.4(2)

Principal Issues:

whether registered clinical counsellors of BC are medical practitioners

Position:

not presently although we have been advised that the provincial Health Professions Council is considering an amendment to the Health Professions Act which would change our response

Reasons:

23 December 1996 External T.I. 9635425 - NON-PROFIT ORG. - XXXXXXXXXX

Unedited CRA Tags
149(1)(l)

Principal Issues:

Whether the XXXXXXXXXX would qualify as a non-profit organization
within the meaning of paragraph 149(1)(l) of the Act?

Position:

Likely it would qualify.

Reasons:

25 November 1996 External T.I. 9636535 - MODIFICATIONS TO ECF DISTRESS PREFERRED SHARES

Unedited CRA Tags
248(1) 112(1)

Principal Issues:

1.whether the early repayment of Debentures is permitted from ECF
2. whether the acquisition of a significant interest in another entity operating a similar business or the entering into of a joint venture with this entity is considered as capital expenditures in the normal and ordinary course of the existing business of XXXXXXXXXX.

Position:

1.yes
2.no

Reasons:

30 November 1995 External T.I. 9635345 - XXXXXXXXXX TIME EXTENSION

Unedited CRA Tags
147.2(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.

XXXXXXXXXX							963534
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling 962143, dated XXXXXXXXXX, 1996

Conference

11 October 1996 APFF Roundtable Q. 3, 9631110 F - ATTRIBUTS FISCAUX

Unedited CRA Tags
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.

TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE

APFF - CONGRES 1996

3.5 Détermination des «attributs fiscaux»

27 November 1996 CTF Roundtable, 9636670 - EVENT OF DEFAULT

Unedited CRA Tags
212

Principal Issues:

change of control whether acceptable event of default even though not a listed event.

Position:yes

Reasons:reasonable

Technical Interpretation - Internal

30 January 1997 Internal T.I. 964070B F - DÉDUCTION REER - JUGES

Unedited CRA Tags
146 REG 8309

Principales Questions:

Déduction REER - Juges

Position Adoptée:

28 January 1997 Internal T.I. 9638377 - DISABILITY TAX CREDIT -MEANING OF WALKING

Unedited CRA Tags
118.3

Principal Issues:

meaning of walking and whether individual's ability to walk is markedly restricted for purpose of disability tax credit

Position:

walking includes bipedal locomotion with the use of a cane or crutches but the determination of whether an individual's ability to walk is markedly restricted involves a finding of fact and the taxpayer has not submitted sufficient evidence to support the claim

Reasons: see above

28 January 1997 Internal T.I. 9621587 F - RÉGION MÉTROPOLITAINE

Unedited CRA Tags
8(4)

Position Adoptée:

24 January 1997 Internal T.I. 9633597 - ASSIGNMENT OF RIGHTS TO RECEIVE SUPPORT PAYMENTS

Unedited CRA Tags
60(b) 60(c) 56 56(2)

Principal Issues:

whether when a subrogation of rights to receive alimony or maintenance has occured, an amount can be included in the intended recipient's income (as alimony or maintenance) or a deduction is permitted to the payor as "alimony or maintenance."

Position:

amount received by the social assistance recipient is entirely social assistance as provided for in the social assistance legislation. No deduction can be given to the payor because the payments to the province, after formal assignment of the right to receive alimony or maintenace, are not received on behalf of the intended recipient nor are they received for his/her benefit.

Reasons:

16 January 1997 Internal T.I. 9635267 - REPORTING DISABILITY PAYMENTS FROM RPP

Unedited CRA Tags
56(1)(a)(i) 118(3)

Principal Issues:

Reporting of disability benefits from an RPP on a T4A

Position:

Confirmed prior comments XXXXXXXXXX

Reasons:

14 January 1997 Internal T.I. 9637127 F - MONTANT FORFAITAIRE - LOCATION VOITURE DE TOURISME

Unedited CRA Tags
67.3 18(9)

Principales Questions:

Comment doit-on traiter un montant forfaitaire payé au début de la période de location d'une voiture de tourisme pour les fins du calcul de la limite prévue à l'article 67.3 de la Loi lorsque le montant est payé soit par un travailleur indépendant, soit par un employé?

Position Adoptée:

3 January 1997 Internal T.I. 9608997 - TAXABILITY OF CIDA ALLOWANCES

Unedited CRA Tags
6(1)(b)

Principal Issues:
Taxability of Payments Received by CIDA Cooperants. Comparable to payments under the Foreign Service Directives - Reimbursements and Allowances.

Position:
Payments reviewed non-taxable pursuant to departmental in effect at the time when the payments were received.

Reasons:

2 January 1997 Internal T.I. 9640837 - REFUND OF PREMIUMS GRANDCHILD SUPPORT RRIF

Unedited CRA Tags
146.3(1) 118(1) 146(1) 146.3(6.2)

Principal Issues: Refund of premiums - Meaning of financial support

Position: Question of fact

Reasons: Routine

10 December 1996 Internal T.I. 9639060 - TERMS OF REPAY FOR SH LOAN EXEMPT BY REASON OF THE ACT

Unedited CRA Tags
15(2.3)

Principal Issues:

what constitutes reasonable terms of repayment for a shareholder loan exempt by reason of 15(2.3)

Position:

as long as the terms & conditions of a loan to a shareholder are the same as that for the public at large, the terms of repayment associated with such a commercial transaction will normally be treated as reasonable for the purposes of 15(2.3) -this includes revolving credit instruments which do not make provision for repayment of the entire loan but require minimum payments -however loans that are not exempt by reason of 15(2.3) will only be exempt under 15(2.4) or (2.5) if the terms for full repayment of the loan are set out at the time the loan is made

Reasons:

12 November 1996 Internal T.I. 9634087 F - MAUVAISE CRÉANCE - BIEN AMORTISSABLE

Unedited CRA Tags
20(4) 50(1)

Principales Questions:

4 November 1996 Internal T.I. 9630056 - refundable ITC and loss carryback

Unedited CRA Tags
111

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.

			November 4, 1996
	Verification, Enforcement and	Policy & Legislation
	  Compliance Research Branch	  Branch
	Tax Incentive Audit Section	J.A. Szeszycki
	Mara Praulins	(613) 957-8953
			963005

Refundable Investment Tax Credit and Loss Carry Back