Income Tax Severed Letters - 1998-06-12

Ruling

30 November 1997 Ruling 9802253 - RETIRING ALLOWANCE

Unedited CRA Tags
248(1) 56(1)(a)(ii) 60(j.1)

Principal Issues:

A) Would an amount be considered a retiring allowance;
B) Would the employee be entitled to a deduction under paragraph 60(j.1) of the Act;
C) Would a retiring allowance amount be deductible by the employer.

Position:

A) Yes;
B) Yes;
C) Yes.

Reasons:

30 November 1997 Ruling 9807423 - STOCK PLAN FOR DIRECTORS

Unedited CRA Tags
6801(d) 6(1)(c) 248(1)

Principal Issues:

Will 6801(d) apply where a director elects to receive all or part of the annual retainer and meeting fees in deferred share units?

Position:

Yes;

Reasons:

30 November 1997 Ruling 9732443 - VARIATION OF TRUST

Unedited CRA Tags
54

XXXXXXXXXX
XXXXXXXXXX 973244

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: Supplementary advance Income Tax Ruling Request
XXXXXXXXXX - 90426

We are writing in reply to your letter dated XXXXXXXXXX, in which you requested a change for purposes of clarification to paragraph 10 of the above noted ruling letter dated XXXXXXXXXX, 1997 and requested confirmation that this change will not affect the previous rulings given.

30 November 1997 Ruling 9733783 - PUBLIC BUTTERFLY

Unedited CRA Tags
55(3)(b) 55(3.1)

Principal Issues: Public Butterfly - No new issues.

Position:

Reasons:

30 November 1997 Ruling 9733893 - RETIRING ALLOWANCE

Unedited CRA Tags
248(1) 60(j.1) 56(1)(a)(ii)

Principal Issues:

A) Would an amount be considered a retiring allowance;
B) Would the employee be entitled to a deduction for the said amount under paragraph 60(j.1) of the Act;
C) Would the same amount be deductible by the employer.

Position:

A) Yes;
B) Yes;
C) Yes.

Reasons:

30 November 1996 Ruling 9704263 - VARIATION OF A TRUST

Unedited CRA Tags
106(3) 107(2)

Principal Issues:
Do changes in definition of income for trust purposes result in disposition of trust interests by the trust beneficiaries?

Position:
No

Reasons:
As changes would not allow the Income Beneficiaries to access the capital of the trust, nor allow the Capital beneficiaries access to Income we can rule there has been no disposition as a consequence of the proposed transactions.

30 November 1996 Ruling 9722553 - REASONABLE RETIRING ALLOWANCE

Unedited CRA Tags
60(j.1)

Principal Issues:

Would an amount be considered reasonable retiring allowance

Position:

Yes, the amount not exceeding an amount eligible for rollover under paragraph 60(j.1) of the Act to an RRSP would generally be accepted as reasonable.

Reasons:

30 November 1996 Ruling 9704333 - OPTIONS AND NON-ARM'S LENGTH

Unedited CRA Tags
7(1)(b) 7(3)(a)

Principal Issues:

Will amount received as a result of "cashing out" of a stock option be eligible for 110 (1) (d) deduction?

Position:

Yes

Reasons:

30 November 1996 Ruling 9723223 - AMEND WORDING IN RULING

Principal Issues: Minor amendment to wording in a ruling.

Position: N/A

Reasons: Taxpayer wanted it to be very clear.

30 November 1996 Ruling 9705823 - SBC PUREFICATION

Unedited CRA Tags
55(3)(a)

Principal Issues:

whether cash and short term investments would be considered to be assets used principally in an active business.

Position:

Yes in the particular circumstances.

Reasons:

30 November 1996 Ruling 9730113 - ESTATE FREEZE - TERMS OF PREFERRED SHARES

Unedited CRA Tags
86(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 		973011
XXXXXXXXXX  		XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1997

Dear Sirs:

Re: XXXXXXXXXX
Amendments to Advance Income Tax Ruling 970399

30 November 1996 Ruling 9706383 - RULING AMENDMENT

Unedited CRA Tags
7(1)(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							970638
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1997

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling 970433, dated XXXXXXXXXX, 1997

30 November 1996 Ruling 9713003 - DEFERRED SHARE UNITS, DIRECTOR'S FEES

Unedited CRA Tags
6801

Principal Issues:

Will the payment of director's fees in the form of deferred share units constitute an SDA?

Position: No

Reasons:

30 November 1996 Ruling 9719043 - WITHHOLDING

Unedited CRA Tags
212

Principal Issues:

Changes to facts of Ruling #971581

Position:

Cancel 971581 and issue this ruling letter.

Reasons:

30 November 1996 Ruling 9722353 - ANNUITY CONTRACT AND PAYMENT MADE AFTER JULY 30, 1997

Unedited CRA Tags
254(a)

Principal Issues:

Can proposed 254(a) apply to a contract where the payment is made after July 30, 1997?

Position:

Yes, in some circumstances.

Reasons:

Technical Interpretation - External

29 May 1998 External T.I. 9800715 F - DÉPART D’UN ASSOCIÉ

Unedited CRA Tags
34.2(4) 53(2)(c) 53(1)(e) 98.1(1) 96(1)(f)

Principales Questions:

1. Est-ce que le prix de base rajusté d’une participation dans une société de personnes tient compte du montant déduit par un associé conformément au paragraphe 34.2(4) de la Loi?

2. Lorsqu’une société de personnes rachète la participation dans la société de personnes détenue par un associé, à quelle date se termine le calcul du prix de base rajusté de la participation? Quand doit-on ajouter, au prix de base rajusté de la participation, la part de l’associé qui se retire dans le revenu de la société de personnes pour l’exercice financier de son départ?

3. Est-ce que l’associé qui se retire doit inclure dans ses revenus le montant qui n’avait pas été inclus dans le revenu de la société de personnes pour l’exercice financier précédent en raison d’un choix effectué conformément à l’alinéa 34a) de la Loi?

Position Adoptée:

29 May 1998 External T.I. 9730525 - ATTRIBUTION RULES - ANNUITY CONTRACT

Unedited CRA Tags
74.1 74.2 12.2 39

Principal Issues:

1. Do subsections 74.1(1) and 74.2(1) apply where a spouse is designated as an irrevocable beneficiary of an annuity contract?

2. Does subsection 75(2) apply in a particular situation?

Position:

1. Subsection 74.2(1) would not apply assuming that there is no part of the life insurance policy acquired in respect of which a policyholder is deemed by paragraph 138.1(1)(e) to have an interest in a related segregated fund trust. As for the application of subsection 74.1(1), no position taken.

2. Where no trust exists, no. Where a trust exists, no position taken.

Reasons:

28 May 1998 External T.I. 9812015 - TANNING MACHINE NOT A MED EX

Unedited CRA Tags
118.2(2)

Principal Issues:

whether costs of a tanning machine or fees paid to a tanning salon qualify for coverage under a phsp when prescribed by a doctor for relief from psoriasis

Position: no

Reasons:

28 May 1998 External T.I. 9812705 - DEDUCTION FOR RENT PAID INSTEAD OF HOTEL ACC.

Unedited CRA Tags
18(1)(a)

Principal Issues:
Whether expense for renting an office/suite in other cities in lieu of travelling expenses and hotel costs for sale representatives would be deductible. Expenses would be accommodation/office costs, including parking, meals, etc.

Position:
Rent and parking expenses would be deductible to the extent they are reasonable and relate exclusively to the business. Furniture purchased to furnish the office/suite is a capital expenditure on which capital cost allowance may be claimed. Meals would be deductible as provided for by section 67.1, provided they are for business purposes.

Reasons:
On the basis of Ozvegy v. MNR, 78 DTC 1772, there would be no difference between paying an hotel accommodation and rent for an apartment used for business purposes. With respect to parking and meals, the expense is deductible if it is incurred to earn income - paragraph 18(1)(a) of the Act. Additional restrictions apply to meals under section 67.1. Finally, the cost of the furniture is a capital expenditure and cannot be deducted by virtue of paragraph 18(1)(b) of the Act. However, capital cost allowance may be claimed under paragraph 20(1)(a) of the Act.

27 May 1998 External T.I. 9807845 - QUALIFIED FARM PROPERTY

Unedited CRA Tags
110.6(1)

Principal Issues: Whether land owned by the taxpayer constitutes "qualified farm property"?

Position: Perhaps

Reasons: We have not been provided with enough detail to make such a determination. Only general comments have been provided.

26 May 1998 External T.I. 9805165 - TIMESHARE - RENTAL INCOME

Unedited CRA Tags
9 18(1)(a) 18(1)(b) 20(1)(a)

Principal Issues:

Up-front payment under a timeshare agreement and other rental expenses.

Position:

1) The cost of the timeshare may be a deductible expense in the year incurred or when the services/goods/asset to which it relates are consumed;

2) interest on monies borrowed to purchase the timeshare may be a deductible expense.

Reasons:

26 May 1998 External T.I. 9809395 - ATTENDANT NURSING CARE IN RETIREMENT CENTRE

Unedited CRA Tags
118.2(2)(b)

Principal Issues: Whether part of the fees paid to a retirement centre that is not a nursing home qualify as a medical expense

Position: No

Reasons: As stated in IT-519R2, imputed remuneration does not qualify. To qualify under 118.2(2)(b), there must be salary or remuneration actually paid.

26 May 1998 External T.I. 9805415 - INVESTMENT IN A NON-RESIDENT ENTITY

Unedited CRA Tags
94.1 74.1

Principal Issues:

Whether GAAR applies to a transaction under which a taxpayer acquires shares of a non-resident corporation that invests in a Canadian resident mutual fund and the taxpayer gives the shares to his grand-daughter.

Position:

Sections 94.1 and 74.1 could require the taxpayer to report deemed income on the shares of the non-resident corporation. In such case, GAAR would have no application.

Reasons:

26 May 1998 External T.I. 9809405 - EMPLOYMENT AND CONTRACT INCOME OF INDIANS

Unedited CRA Tags
81(1)(a) 5(1)

Principal Issues:

Tax Status of various Indian employees and subcontractors of School Board

Position:

Application of Indian Act Exemption Guidelines, employees living off reserve and performing duties of employment off reserve for employer situated off reserve are taxable on employment earnings. School Board Trustee may be taxable, dependent on where duties are performed. Existence of reimbursement of some salary costs by XXXXXXXXXX does not affect tax status.

Subcontracted language teacher’s tax status must be reviewed by examining the nature of the subcontract relationship. Insufficient information

Reasons:

26 May 1998 External T.I. 9805745 - SALARY / BONUS - REASONABLENESS

Unedited CRA Tags
67

Principal Issues:

Reasonableness of bonuses paid to shareholders / employees

Position:

As stated in question 42 of the 1981 Round Table (as clarified in Insights into the 1991 Revenue Canada Round Table Discussion), the Department will not challenge the reasonableness of salaries or bonuses paid to a principal shareholder who is active in the corporation’s business and the corporation has either established 1) a practice of distributing profits to such employee/shareholder in this manner, or 2) a policy of declaring bonuses to shareholders to remunerate them for the profits the corporation has earned that in fact are attributable to special know-how or skills of the shareholder.

The position does not extend to remuneration paid to spouses or other family members of the principal shareholder or to principal shareholders that are non-residents.

Reasons:

26 May 1998 External T.I. 9801505 - FLEX PLANS, CHANGES IN ALLOCATION

Unedited CRA Tags
248(1) "private health services plan

Principal Issues:

Flex Plans - Change in allocation of credits due to occurrence of specified life events. Is the change permissible where:

a) employee changes allocation mid-year from $500 to $600. Medical expenses incurred prior to change $400 and flex credits accrued $250. Up to $150 of medical expense can be reimbursed by the plan before the end of the year.
b) employee changes the allocation to increase it from $200 to $600. Increase cannot be applied toward expenses incurred before change of allocation. Only $200 of the $400 medical expenses incurred prior to the change would be reimbursed by the plan.
c) employee changes allocation mid-year from $500 to $250. Medical expenses incurred prior to change is $100 and flex credits accrued $250. Up to $150 of medical expenses can be reimbursed from the plan before the end of the year.

Position:

a), b) and c) Yes, as long as the agreement provides for the life events in question and contains rules concerning the restrictions on the reimbursements of the expenses incurred prior to the change of allocation. Also, the expenses incurred by single people prior to the change must be for themselves and not for the future spouse. Otherwise, the change would be retroactive.

Reasons:

26 May 1998 External T.I. 9807195 - PERSONAL USE OF EMPLOYER VEHICLES

Unedited CRA Tags
6(1)(e) 6(1)(k)

Principal Issues: Personal Use of Employer Provided Vehicles

Position: Personal use taxable, benefit is calculated per 6(1)(a) and Regulation 7306 unless vehicle is an ‘automobile,’ where benefit is calculated under 6(1)(e) and 6(1)(k)

Reasons: Type of benefit calculation required dependent on vehicle and it’s use.

26 May 1998 External T.I. 9807655 - PHSP - COUNSELLING FEES

Unedited CRA Tags
118.2(2) 248(1) 6(1)(a)(ii)

Principal Issues:

1) Whether a "parenting benefit" is an eligible expense for a PHSP,
2) If not, whether the plan ceases to qualify as a PHSP,
3) If yes to 2), whether contributions by employer are to be included in employee’s income and to what extent, and whether payment out of the plan are taxable and to what extent.

Position:

1) Fees for parenting counselling are not an eligible expenses,
2) The plan ceases to qualify as a result of the payment of non-eligible expenses (unless for the PHSP part of the plan if there is separate accounting as provided in IT-85R2 par. 4)
3) Contributions to the plan by the employer are not employment income. However, all payments received by the employee out of the plan are employment income in the year of receipt.

Reasons:

26 May 1998 External T.I. 9804275 - SHARING OF EQUIVALENT TO SPOUSE EXEMPTION

Unedited CRA Tags
118(4)(b)

Principal Issues: Whether equivalent to spouse exemption can be shared.

Position: Only one person can claim the exemption on his or her tax return.

Reasons: clear wording of 118(4)(b) ITA.

25 May 1998 External T.I. 9812485 - TRAVEL EXPENSES WHILE ON TRAINING

Unedited CRA Tags
8(1)(h)

Principal Issues:

Deduction of travel expenses of employee while on training, whether ‘ordinarily required to carry on duties of employment away from the employer’s place of business’; application of Tremblay decision

Position:

Department’s position to restrict application of Tremblay decision to identical facts

Reasons:

19 May 1998 External T.I. 9809225 - FLEX PLANS - CREDITS BASED ON SALARY

Unedited CRA Tags
6(1)(a)

Principal Issues:

(1) The tax consequences of changes to the amount of flex credits awarded to an employee where the flex credits are awarded on the basis of an employee’s salary, which changes during the year.
(2) Interpretation of paragraph 8 of IT-529. In particular, the value of allocated credits constructively received by an employee and whether all employees of the plan or only the particular employee is affected.
(3) The tax consequences of a change in a flex plan from credit carry-forward to medical expense carry-forward and vice versa.
(4) The interpretation of paragraph 7 of IT-529. In particular, whether the requirement (that nothing of value be forfeited by the employee to obtain flex credits if flex credits are considered to have no value) will apply where an employee benefit plan is cancelled in favour of a flexible benefit plan.

Position:

(1) In some cases the increased flex credits will have no effect on the plan. In other cases, the particular employee will be considered to have constructively received employment income equal to the value of the allocated credits, or, alternatively, the entire plan may be considered an employee benefit plan.
(2) The value of the allocated credits is just that, the value of the credits, not the value of the benefits paid to the employee. Constructive receipt applies to all employees.
(3) A one-time change may be acceptable. A plan that allows changes from year to year will likely not qualify as a PHSP.
(4) No comments given.

Reasons:

13 May 1998 External T.I. 9727105 - PRE&POST-JUDGMENT INT ON WRONGFUL DISMISSAL

Unedited CRA Tags
12(1)(c)

Principal Issues:

whether prejudgment & post-judgment interest on wrongful dismissal awards is taxable

Position:

prejudgment interest may be excluded from income but post-judgment interest is taxable under 12(1)(c) - no withholding required on either

Reasons:

11 May 1998 External T.I. 9421465 - PRE-&POST-JUDGMENT INT ON WRONGFUL DISMISSAL

Unedited CRA Tags
12(1)(c)

Principal Issues:

whether prejudgment & post-judgment interest on wrongful dismissal awards is taxable

Position:

prejudgment interest may be excluded from income but post-judgment interest is taxable under 12(1)(c) - no withholding required on either

Reasons:

27 April 1998 External T.I. 9803415 - HORSES ON DUDE RANCH

Unedited CRA Tags
9

Principal Issues:

whether cost of horses used on a dude or guest ranch are deductible and if not, how losses from death of horses are treated

Position -

treat as a capital asset

Reasons: :

27 April 1998 External T.I. 9730845 - COST OF APPLE TREES

Unedited CRA Tags
9(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.

XXXXXXXXXX 973084
B. Kerr
Attention: XXXXXXXXXX

April 27, 1998

Dear Sirs:

Re: Cost of Apple Trees

This is in response to your letter of November 11, 1997, concerning the deductibility of the cost of planting apple trees.

24 April 1998 External T.I. 9802565 - PENALTY PAYMENT IN RESPECT OF BORROWING

Unedited CRA Tags
18(9.1)

Principal Issues:

If funds are borrowed from A to pay B does 18(9.1) apply to the prepayment penalty charged by A ?

Position:

Generally, Yes. Provided there is performance of obligation

Reasons: Performance of Obligation and interpretation of subsection 18(9.1)

16 March 1998 External T.I. 9728345 - INDIAN ACT EXEMPTION FOR EMPLOYMENT INCOME

Unedited CRA Tags
81

Principal Issues:

Indian Act Tax Exemption for employment income: where the Cree School Board contracts with a college to provide support services for Cree students, is the college’s employee exempt on this employment income?

Position: no

Reasons:

13 March 1998 External T.I. 9731105 - TRAVEL EXPENSES -CONSTR. EMPL.- DEDUCTIBLE?

Unedited CRA Tags
8(1)(h.1) 8(1)(h) 8(10)

Principal Issues:

24 February 1998 External T.I. 9800495 - CARING FOR DISABLED ADULTS AS A BUSINESS

Unedited CRA Tags
9

Principal Issues: Is caring for disabled adults a business?

Position: Unable to confirm

Reasons: Definition of a business

28 January 1998 External T.I. 9716745 F - SERIES D’OPERATIONS

Unedited CRA Tags
248(10) 55(3)a)

Principal Issues:

Est-ce que le rachat des actions privilégiées fait partie de la même serie de transaction que la vente des actions ordinaires dans 2 situations?

Position:

Oui pour la première situation. Pas en mesure de nous prononcer sur la deuxième situation.

Reasons:

8 December 1997 External T.I. 9637025 - WHETHER A PARTNERSHIP IS A PERSON

Unedited CRA Tags
84.1

Principal Issues:

whether a partnership is a person for purposes of applying section 84.1

Position: no

Reasons:

Conference

27 May 1998 CTF Roundtable, 9811750 - IN-HOUSE LOSS UTILIZATION ARRANGEMENTS

Unedited CRA Tags
20(1)(c) 69(11)

Principal Issues:

Status of the Department’s position re: in-house loss consolidation arrangements.

Position:

Presently, as stated in Technical News No. 3 & 9. Awaiting decision from Federal Court of Appeal to determine if we will change our position to be consistent with the decision in Mark Resources.

Reasons:

Technical Interpretation - Internal

28 May 1998 Internal T.I. 9806457 - QUALIFIED FARM PROPERTY

Unedited CRA Tags
110.6(1)

Principal Issues:

Whether a certain parcel of land qualifies as "qualified farm property" when it is repossessed and later re-acquired?

Position: No.

Reasons:

27 May 1998 Internal T.I. 9811140 - DEDUCTIBILITY OF ACCRUED UNPAID INTEREST

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

Principal Issues: Is accrued unpaid interest still deductible in light of the Barbican decision?

Position: Yes, if it qualifies as interest, meeting the 3 criteria espoused in Brenda J. Miller v. The Queen and if the amount to be deducted is paid or payable in respect of the year for which the deduction is sought (i.e. cannot be a contingent obligation).

Reasons: Consistent with the jurisprudence and our reading of the legislation.

27 May 1998 Internal T.I. 9811150 - TAX SHELTERS

Unedited CRA Tags
18.1

Principal Issues: Intent of proposed section 18.1.

Position: To match reporting of expenses and revenue in certain tax shelter arrangements.

Reasons: As per Department of Finance News Release 96-082.

18 May 1998 Internal T.I. 9809050 - MEDICAL EXPENSES- TRAVEL EXPENSES

Unedited CRA Tags
118.2(2)(h)

Principal Issues:

Travel expenses and the medical expense credit

Position:

Amount claimed must be reasonable - normally .10c per kilometre is reasonable.

Reasons:

13 May 1998 Internal T.I. 9808426 F - RECHERCHE - RAPPORT AVEC L’ENTREPRISE MÉDECIN

Unedited CRA Tags
37(1)(a) 37(8)

Principales Questions:

Est-ce que les activités de RS&DE sont en rapport avec une entreprise d’un médecin généraliste et avec celle d’un spécialiste?

Position Adoptée:

11 May 1998 Internal T.I. 9802137 - EMPLOYMENT AT A SPECIAL WORK SITE

Unedited CRA Tags
6(6)

Principal Issues: Whether the allowance received by the individual constitutes a reasonable allowance excluded from income by virtue of subsection 6(6) of the Act.

Position: Allowance would be considered reasonable.

Reasons: Since the allowance is based on an estimate of the cost of board and lodging in the surrounding area, and if in fact all other conditions of paragraph 6(6)(a)(i) are met, the allowance is non-taxable regardless of the amount actually spent by the individual.

28 April 1998 Internal T.I. 9721167 F - RÉGIME D'ASSURANCE MÉDICAMENTS DU QUÉBEC

Unedited CRA Tags
118.2(2)n) 118.2(2)q) 248(1)

Principales Questions:

Les sommes suivantes, défrayées par les particuliers ayant adhéré au nouveau régime d'assurance médicaments du Québec, sont-elles admissibles à titre de frais médicaux:
a) la franchise: l'assuré doit payer les premiers 25 $ du coût des médicaments prescrits une fois par période de trois mois,
b) la coassurance: l'assuré doit payer 25% du coût des médicaments prescrits après avoir assumé les premiers 25$ de franchise,
c) la prime annuelle: l'assuré paie une prime variant entre 0 $ et 175 $.

Position Adoptée:

27 April 1998 Internal T.I. 9804567 - PARTITION OF A MILK QUOTA

Unedited CRA Tags
248(21)

Principal Issues:

whether there is necessarily a disposition upon the partition of a milk quota following the dissolution of a partnership

Position:

provided that a milk quota can be held jointly, no

Reasons:

27 April 1998 Internal T.I. 9804307 F - RÉGIME D’ASSURANCE MÉDICAMENTS DU QUÉBEC

Unedited CRA Tags
118.2(2)n) 118.2(2)q) 248(1)

Principales Questions:
1. Les sommes suivantes, défrayées par les particuliers ayant adhéré au nouveau régime d’assurance médicaments du Québec, sont-elles admissibles à titre de frais médicaux:
a) la franchise: l’assuré doit payer les premiers 25 $ du coût des médicaments prescrits une fois par période de trois mois,
b) la coassurance: l’assuré doit payer 25% du coût des médicaments prescrits après avoir assumé les premiers 25$ de franchise,
c) la prime annuelle: l’assuré paie une prime variant entre 0 $ et 175 $.
2. Quand considère-t-on la prime annuelle comme étant payée aux fins du calcul du crédit d’impôt pour frais médicaux?

Position Adoptée:
1. Les montants payés par l’assuré pour la franchise et la coassurance sont considérés à titre de frais médicaux en vertu de l’alinéa 118.2(2)n) de la Loi. Le montant payé par l’assuré pour la prime annuelle est considéré à titre de frais médicaux en vertu de 118.2(2)q) de la Loi.
2. La prime serait considérée être payée au moment où elle devient exigible (i.e. le 30 avril suivant l’année de couverture de l’assurance) et, si elle est payée après la date d’exigibilité, au moment du paiement.

16 April 1998 Internal T.I. 9733547 F - PRESTATION FISCALE POUR ENFANTS - 164(2)

Unedited CRA Tags
164(2) 164(2.2)

Principales Questions:
Quelles sont les dispositions de la Loi qui permettent au Ministère d’affecter 50% du remboursement de la prestation fiscale pour enfants (PFE) après la date de la faillite à une dette concernant le versement en trop de PFE pour une année pré-faillite ?

Position Adoptée:
Les paragraphes 164(2) et 164(2.2) de la Loi.

26 March 1998 Internal T.I. 9717087 - INTEREST FROM RESERVE BASED CO

Unedited CRA Tags
81

Principal Issues: Interest income from a GIC issued by a reserve based trust company.

Position: Insufficient information, but not exempt unless it can be shown that it was generated on the reserve.

Reasons: The investment income is the property in question and if it was not generated on reserve it is considered to be earned in the economic mainstream and is not exempt.

Ministerial Letter

5 May 1998 Ministerial Letter 9804888 - TAXATION OF PROPERTY LEAVING CANADA

Unedited CRA Tags
128.1

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.

XXXXXXXXXX

Dear XXXXXXXXXX :

24 April 1998 Ministerial Letter 9803498 - MEAL EXPENSES

Unedited CRA Tags
8 67

Principal Issues:
why fed employees, RCMP & others can receive up to $47 a day for meals but a trucker may only deduct $16.50 per day for meals

Position:
The $47 per diem refers to daily travel allowances which may be received in certain circumstances without having to be included in income. The deductibility of meal expenses is limited by s. 67 of the Act. The simplified method allows flat rate meals of $11.00 per meal ($33 a day) or 1/2 of which can be deducted from income.

Reasons:

21 April 1998 Ministerial Letter 9804448 - STRIKE PAY & DEDUCTIBILITY OF UNION DUES

Unedited CRA Tags
3 8

Principal Issues: TAXATION OF STRIKE PAY & DEDUCTIBILITY OF UNION DUES

Position: STRIKE PAY NOT TAXABLE, IF STRIKE PAYMENTS ARE "RELATED TO THE ORDINARY OPERATING EXPENSES OF THE TRADE UNION" THEN THEY ARE DEDUCTIBLE

Reasons: