Income Tax Severed Letters - 1998-07-24

Ruling

30 November 1997 Ruling 9810353 - QUALIFIED FOR DISTRIBUTION TO THE PUBLIC

Unedited CRA Tags
Regulation 4801 132(6)

Principal Issues:

Will units of a Trust be “qualified for distribution to the public” within the meaning of paragraph 4801(a) of the Regulations where the units will be issued: 1) in reliance on the prospectus exemptions for “sophisticated purchasers” and “block sales of $150,000” contained in sections 43 and 51 of the Quebec Securities Act (“QSA”) and 2) in accordance with the terms of an offering memorandum filed with the Quebec Securities Commission.

Position:

Yes

Reasons:

30 November 1997 Ruling 9733493 F - ACTIONS MIRROIRS

Unedited CRA Tags
245

Principal Issues:

Est-ce que l'article 245 s'applique afin de refuser un roulement selon l'article 85 parce les actions émises par la société canadienne sont des actions miroirs dont la valeur est fonction des actions d'une société US?

Position:

Non

Reasons:

Technical Interpretation - External

20 July 1998 External T.I. 9812515 - FILM TAX CREDIT-

Unedited CRA Tags
Regulation 1106(7)

Principal Issues: what is rct's definition of "treaty co-production twinning arrangement in reg 1106?

Position: pairing of two distinct film or video productions, one domestic one foriegn.

Reasons: discussions with finance.

17 July 1998 External T.I. 9611605 - SCHOLARSHIPS RECEIVED BY STATUS INDIANS

Unedited CRA Tags
118.5(1)

Principal Issues:
1. Are grants received by status Indians taxable?
2. Are the status Indian entitled to the tuition and education amounts?

Position:
1. Perhaps
2. Perhaps

Reasons:
1. If the grant is provided to the status Indian under a treaty or agreement between a band and Her Majesty it shall be deemed to be situated on reserve, and therefore non taxable by virtue of section 90 of the Indian Act.

17 July 1998 External T.I. 9810975 - DIRECTOR'S LIABILY FOR EMPL-CORP'S FAILURE TO WITHHOLD

Unedited CRA Tags
227.1 227(8)

Principal Issues: director's liability when employer fails to withhold income tax from Canadian resident employee and the provisions of 227.1(1) of the Act apply

Position: director will only be required to pay the amount of the employer's outstanding liability on account of source deductions and that does not include income tax that was not withheld from the employee

Reasons: 227(8) only imposes a penalty for the failure to withhold from a Canadian residents remuneration because the employee is liable for the balance of tax owing for that year. tax payable by the employee If 227.1(1) applies, the Department will not require any more from the directors than was required of the corporation

16 July 1998 External T.I. 9728295 - CHARITABLE REMAINDER ANNUITY TRUST

Unedited CRA Tags
118.1 69 115 116

Principal Issues:

16 July 1998 External T.I. 9812995 - QUALIFIED FARM PROPERTY - CLAUSE (A)(VI)(A)

Unedited CRA Tags
110.6(1)(a)(vi)(A)

Principal Issues:

1. Whether farm property qualifies for the $500,000 capital gains deduction pursuant to subsection 110.6(2) of the Act.

2. Must the property be used for a period of 24 months in the business of farming to qualify for the capital gains deduction pursuant to subsection 110.6(2) of the Act.

3. Whether the gain on the sale of farm property can be deferred using the replacement property rules in section 44.

Position:

1. No.
2. Yes
3. No

Reasons:

16 July 1998 External T.I. 9813255 - QUALIFIED FARM PROPERTY - GROSS REVENUE TEST

Unedited CRA Tags
110.6(1)

Principal Issues: Is it ever appropriate to exclude any type of income when calculating the income from all other sources for purposes of the definition of "qualified farm property" in subsection 110.691) of the Act.

Position: No.

Reasons: Income from all sources would include all amounts included in income by virtue of section 3 (division B) of the Act. There are no provisions to exclude certain types of income in the computation of income from all other sources for purposes of the gross revenue test in subparagraph (vi)(A) of the definition of “qualified farm property” in subsection 110.6(1) of the Act

16 July 1998 External T.I. 9814325 - VIDEOTAPE CASSETTES-CCA

Unedited CRA Tags
20(1)(a)

Principal Issues: 1. rules for cca re: videotape cassettes

Position: Class 12 or class 8 depending on rental arrangements.

Reasons: regulations

15 July 1998 External T.I. 9817945 - TAXABLE BENEFITS - AIRLINE PASSES

Unedited CRA Tags
6(1)(a)

Principal Issues: Are standby airline passes provided to employees a taxable benefit?

Position: No

Reasons: Paragraph 42 of IT-470R indicated that airline passes provided to airline employees will only-become taxable if the employee travels on a space-confirmed basis and pays less than 50% of the economy fare. Standby passes would not be on a space-confirmed basis and would therefore would not be a taxable benefit.

10 July 1998 External T.I. 9802365 - QUALIFYING SMALL BUSINESS CORPORATION SHARES

Unedited CRA Tags
110.6(1) 248(1) (sbc)

Principal Issues:

Whether land and building “used principally” in an active business in relation to the definition of qualifying small business corporation share and small business corporation.

Position:

Law generally explained

Reasons:

8 July 1998 External T.I. 9807125 - COMPUTATION OF EXEMPT SURPLUS

Unedited CRA Tags
250(5) 5907(1)

Principal Issues:

If a foreign affiliate only becomes resident in a designated treaty country part way through the year, will the whole year’s net earnings from an active business carried on through a PE in that country be included in its exempt surplus?

Position:

Yes.

Reasons:

7 July 1998 External T.I. 9808545 - MEMBERSHIP FEES AND RECEIPTS

Unedited CRA Tags
118.1

Principal Issues: Can charitable donation receipts be issued in respect to certain membership fees?

Position: No.

Reasons: Membership fees entitle payor to benefits.

2 July 1998 External T.I. 9812665 - CHILD SUPPORT PAYMENTS, COLA CLAUSE

Unedited CRA Tags
56.1(3) 60.1(3) 56.1(4) 56(1)(b) 60(b)

Principal Issues:

Whether the exception in paragraph (b) of subsection 56.1(3) applies when there is a Cost of Living Adjustment (COLA) clause in a post-April 1997 order. The exception in paragraph (b) of subsection 56.1(3) provides that where an agreement or order is made after April 1997, and there is a variation of child support amount payable from the last such amount received by the recipient before May 1997, each varied amount of child support received under the agreement or order is deemed to have been receivable under an agreement or order and the commencement day of the order or agreement is the day on which the first payment of the varied amount is required to be made.

Position:

No. The exception in paragraph (b) of subsection 56.1(3) is not applicable.

Reasons:

2 July 1998 External T.I. 9815885 - CHILD SUPPORT PAYMENTS, COLA CLAUSE

Unedited CRA Tags
56.1(4) 56(1)(b) 60(b)

Principal Issues:
Where a court order or agreement is made before May 1997, and child support amounts are otherwise deductible, the order will be considered to have a “commencement day” (as defined in subsection 56.1(4)) if the order is varied after April 1997 to change the child support amounts payable to the recipient in accordance with subparagraph (b)(ii) of the definition of “commencement day” in subsection 56.1(4). Does subparagraph (b)(ii) of the definition of “commencement day” in subsection 56.1(4) apply where a pre-May 1997 court order includes a cost of living adjustment (COLA)?

Position:
No. Subparagraph (b)(ii) of the definition of “commencement day” in subsection 56.1(4) of the Act is not considered to be applicable.

Reasons:
See 9717155, 9718317. It is the Department’s position that an agreement or order made before May 1997 has not been varied where a change in child support amounts payable such as a COLA clause is automatic and is built into the agreement or order.

2 July 1998 External T.I. 9806905 - RRSP AND RRIF FEES

Unedited CRA Tags
146(1)

Principal Issues: With the introduction of the Department's new position on RRSP/RRIF fees, would the reimbursement of fees by the annuitant to the plan have any negative tax implications?

Position: Generally, we would view the reimbursement as a contribution.

Reasons: Application of our administrative position.

30 June 1998 External T.I. 9812065 - OVERSEAS EMPLOYMENT TAX CREDIT

Unedited CRA Tags
122.3(1.1)

Principal Issues: Whether OETC is available to an individual where a Canadian personal service corporation is interposed between the individual and a specified employer provided that all the other conditions would otherwise have been met?

Position:. Yes

Reasons: It is clear from the Explanatory Notes issud by Finance on December, 1996 when subsection 122.3(1.1) was first introduced that that subsection would not apply if the person who receives the services is a specified employer of the individual had it not been the existence of the personal service corporation. XXXXXXXXXX

30 June 1998 External T.I. 9809735 - SR&ED

Unedited CRA Tags
127(18)

Principal Issues: will a grant received to construct a building in which sr&ed wil be done grind the sr&ed expenditures?

Position: yes, likely can be linked

Reasons: the Sr&ed and the construction of the building can be linked

29 June 1998 External T.I. 9805875 - INDIAN STATUS INCOME

Unedited CRA Tags
56(1)(n) 56(1)(o) 9

Principal Issues: Taxation of a Grant received by a Status Indian

Position: Depends on the income categorization of the grant.

Reasons:

26 June 1998 External T.I. 9805125 - SPOUSAL AND CHILD SUPPORT

Unedited CRA Tags
56.1(4)

Principal Issues: Payments in respect of bonuses - Whether they can be regarded as being an “allowance payable ... on a periodic basis” for the purposes of the definition of “support amount” in subsection 56.1(4) of the Act.

Position: Generally, yes

Reasons: Consistent with 910295, Decision Summary 6122-4 and paragraph 9 of IT-118R3

26 June 1998 External T.I. 9729995 - 89(1), CAPITAL DIVIDEND ACCOUNT

Unedited CRA Tags
89(1)

Principal Issues:
Whether the negative resultant amount which is produced under the subtraction equation in paragraph (a) in the definition of "capital dividend account" in subsection 89(1) of the Act when the non-deductible portion of the capital losses are greater than the non-taxable portion of the capital gains, should have an impact on the computation of a corporation's capital dividend account.

Position:
The negative resultant amount which is produced under paragraph (a) in the definition of “capital dividend account”, should have no impact on the computation of the corporation's capital dividend account.

Reasons:
The use of the word "exceeds" in the subtraction equation of paragraph (a) in the definition of "capital dividend account" will restrict the resultant amount to be a positive number.

24 June 1998 External T.I. 9814835 - NEW LATE ELECTION REQUIRED FOR ADD’L PROP FOR 110.6

Unedited CRA Tags
110.6(26)

Principal Issues: whether a capital gains election can be amended to add property not previously elected upon

Position: no

Reasons: the capital gains election is made on a property-by-property basis and 110.6(27) which provides for an amendment to an election also refers to "an election in respect of a property or business" - in addition, in determining whether an amendment is possible 110.6(28) refers to the value of the original property elected upon -in the context of the limits and wording of 110.6(19)-(30), an election relates only to the property or business (ece) specified in the election - no substitutions or additions

24 June 1998 External T.I. 9815035 - SIGN LANGUAGE INTERPRETIVE SERVICES

Unedited CRA Tags
118.2(2)(l.4)

Principal Issues: whether sign language interpretative services, sign language training for parents and travel for parents qualifies as a medical expense

Position: interpretative services - yes, training - yes effective for 98
travel - to visit child at school for deaf - no, -to obtain medical services, including the training, yes to the extent provided by (g) & (h)

Reasons: C-28 passed june 18,1998 includes 118.2(2)(l.4), 98 budget proposes to allow training for 98 & subs, travel - allowed to the extent permited by 118.2(2)(g) and (h)

22 June 1998 External T.I. 9806925 - TRANSFER OF PROPERTY TO RRSP - TIMING

Unedited CRA Tags
146(1)

Principal Issues: When does a disposition of property occur.

Position: Question of fact and law.

Reasons: Paragraph (c) of the definition of “disposition” under section 54 of the Act.

19 June 1998 External T.I. 9806525 - CHILD SUPPORT PAYMENTS - RETROACTIVE ORDER

Unedited CRA Tags
56.1(4) 56.1(3) 60.1(3) 56(1)(b) 60(b)

Principal Issues:

1. Are the support payments subject to the new child support rules given that the court order issued after May 1, 1997, retroactively replaces a XXXXXXXXXX court order? Is a retroactive court order “made”, for the purposes of the definition of “commencement day” in subsection 56.1(4), at the beginning of the first time period that payments were required to be made under the new order? Does subsections 56.1(3) and 60.1(3) apply?

2. The taxpayer has asked for our technical interpretation regarding three different possible scenarios (depending on the actual wording of the court order) under which the actual amount of the support payments the taxpayer is required to make in the future is reduced and:

a) his ex-wife is ordered to repay excess support payments made since XXXXXXXXXX
b) his ex-wife is not ordered to repay the excess support payments made but the overpayments are applied to future child support payments; or
c) his ex-wife is not required to repay the excess support payments and there is no offsetting reduction of future support payments the taxpayer will make. The taxpayer will commence a separate legal action against his ex-wife to recover the amount owing.

Position:

1. Question of fact. We do not have a copy of the court order so we can only issue general comments. According to the client’s lawyer, they will be asking the court to issue a retroactive court order (after May 1, 1997), replacing a XXXXXXXXXX court order such that there will be a reduction of child support from $XXXXXXXXXX per month before tax to $XXXXXXXXXX per month with taxes to be paid by the ex-wife retroactive to XXXXXXXXXX

2. We have only provided general comments about the three scenarios.

Reasons:

19 June 1998 External T.I. 9815695 - ALLOWABLE BUSINESS INVESTMENT LOSS

Unedited CRA Tags
39(1)(c) 50(1)(c) 87(4)(c)

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 					981569
T. Harris
Attention:  XXXXXXXXXX 

June 19, 1998

Dear Sirs:

Re: Paragraph 50(1) of the Income Tax Act (the "Act")

8 June 1998 External T.I. 9808155 - RETIRING ALLOWANCE - RELATED OR SAME EMPLOYER

Unedited CRA Tags
60(J.1)(ii) 60(J.1(iv)

Principal Issues: Whether previous employer (the RCMP) related to current employer (the Bank of Canada) for purposes of retiring allowance.

Position: Same employer.

Reasons: Previous positions.

8 June 1998 External T.I. 9806285 - RRSP - FOREIGN PROPERTY & REINVESTED EARNINGS

Unedited CRA Tags
206(2)

Principal Issues: Whether cost of mutual fund units increased by dividends reinvested in units.

Position: Cost of reinvested units equal to cost of dividends.

Reasons: 52(6) Wording of the Act and previous positions.

3 June 1998 External T.I. 9806075 - WITHHOLDING, RETROACTIVE PAYMENTS

Unedited CRA Tags
100(3.2)

Principal Issues: Will vacation pay and accumulated sick leave qualify as retroactive payments of subsection 100(3.2) of the Regulations?

Position: No

Reasons: Term not defined so will give it ordinary meaning

29 May 1998 External T.I. 9812025 - SETTLEMENT UNDER WAGE-LOSS REPLACEMENT.

Unedited CRA Tags
6(1)(a) 6(1)(f)

Principal Issues: Whether the Department has reconsidered its position on lump-sum amounts paid to a taxpayer n settlement of a lawsuit to recover long-term disability benefits as result of the Court's decision in Landry v. The Queen, 98 DTC.

Position: No. Our position remains that the amounts are taxable under paragraphs 6(1)(a) or 6(1)(f).

Reasons: In our view, the decision in Cook v. The Queen, 98 DTC 1416, is the better view, i.e., that a lump sum settlement of disability benefits is founded in the taxpayer's rights under an employment contract, and is therefore to be included in income under paragraph 6(1)(a). In additon, there is an argument in some cases (specifically rejected in Landry based on the facts) that a portion or all of a lump-sum settlement of disability benefits represents amounts due to an employee under his or her plan and is thus taxable under paragraph 6(1)(f) of the Act.

22 May 1998 External T.I. 9806575 - EXCLUDED INTEREST

Unedited CRA Tags
40(3.1) 40(3.15)

Principal Issues: if partnership holds shares with dividend entitlement if dividends not declared can it still be said that there is an excluded interest in oartnership per 40(3.15)?

Position: Yes. can be said to earn income from property

Reasons: provided dividends have been paid at any time in the time period.

13 May 1998 External T.I. 9810525 - RELATED EMPLOYER, PENALTY DETERMINATION

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

Principal Issues: Would an employer whose service therewith is included in determining the early retirement penalty to be applied to pension benefits be a related employer under 60(j.1)(v)?

Position: yes

Reasons: The years of service are used to determine pension benefits in accordance with the provision.

4 May 1998 External T.I. 9810125 - RRSP AND FOREIGN CURRENCY

Unedited CRA Tags
146(6) 146(10)

Principal Issues: Whether our following position remains applicable: where a foreign currency which is converted to a qualified investment within a reasonable time would not be considered to be a non-qualified investment?

Position: Yes.

Reasons: Wording of the Act and previous positions

29 April 1998 External T.I. 9803715 - RESTITUTION OF LAND BY A FOREIGN GOVERNMENT

Unedited CRA Tags
69(1)(c)

Principal Issues:

During the second world war, real property, owned by an individual, was seized by German forces of occupation. Subsequently, the real property was nationalized by the Latvian Soviet Regime. In 1996, following a restitution process, a Canadian resident (a rightful heir) acquired ownership of an interest in the property (the Property). What is the tax treatment of the Property?

Position:

For purposes of the Act, the cost of the Property would be its fair market value on the date that the Canadian resident acquired ownership of the interest. Any appreciation in value of the Property attributable to the period prior to such date would not be taxable under the Act, since such amount would be considered a "windfall" (see paragraph 3 of IT-334R2).

Reasons:

27 April 1998 External T.I. 9802635 - INTEREST ON PREPAID TAXES

Unedited CRA Tags
12(1)(c)

Principal Issues: Is interest paid on property taxes overpayments taxable?

Position: YES

Reasons: meets the definition of interest

23 March 1998 External T.I. 9806215 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues: We have been asked to be of assistance with respect to the commutation of an annuity contract issued in connection with a structured settlement arrangement and the payment of the related lump sum to the claimant.

Position: We are unable to be of assistance.

Reasons: One of the requirements of a structured settlement arrangement is the related annuity contract be non-commutable.

18 March 1998 External T.I. 9802785 - CHILD SUPPORT

Unedited CRA Tags
56.1(4)

Principal Issues: The income tax consequences where a new court order may be issued in XXXXXXXXXX of 1998.

Position: It is a question of fact although the new order may have a commencement on the day it is made. Comments concerning the application of the new rules were also made.

Reasons: For the purposes of the definition of “commencement day” in subsection 56.1(4) of the Act, the new order may have a commencement day on the day it is made.

10 March 1998 External T.I. 9729465 - JOINT SETTLORS & BARE TRUST

Unedited CRA Tags
54

Principal Issues: Is it possible for husband and wife who are joint owners of property to transfer that property to a bare trust?

Position: Yes, provided the criteria set out for a bare trust are met.

Reasons: Meeting the criteria is determinative of the issue.

23 February 1998 External T.I. 9629675 - TWENTY -ONE YEAR RULE AND 94(1)

Unedited CRA Tags
104(4) 94(1)

Principal Issues: applicability of 104(4) to foreign trust

Position: a104(4) applicable for purposes of computing amt. determined under clause 94(1)(c)

Reasons: confirmed by dept of finance

Conference

27 May 1998 IFA Roundtable, 9814010 - IMMIGRATION OF A FOREIGN AFFILIATE

Unedited CRA Tags
5907(13)

Principal Issues: Whether a notional amount in respect of foreign tax that would have been paid had the assets of a foreign affiliate actually been disposed of on its emigration from the foreign country and immigration into Canada may be deducted in computing the income inclusion under 128.1(1)(d).

Position: Yes. If the foreign country does not provide for an actual departure tax similar to Canada's

Reasons: Words of 5907(13)

12 May 1998 CALU Roundtable Q. 1, 9807000 - CONFERENCE OF ADVANCED LIFE UNDERWRITING

Unedited CRA Tags
N/A

Principal Issues: See attached

Position: See attached

Reasons: CALU Conference/Questions and Answers

Technical Interpretation - Internal

15 July 1998 Internal T.I. 9817146 - EFILE AND DATE OF RECEIPT OF PAYMENT

Unedited CRA Tags
153

Principal Issues: date of receipt of payment of taxes when efile

Position: date postmarked

Reasons: 248(7)(a)

2 July 1998 Internal T.I. 9815897 - TAXATION OF PRIZES

Unedited CRA Tags
6(1)(a)

Principal Issues: Taxation of winnings in a manufacturer contest.

Position: Taxable under paragraph 6(1)(a).

Reasons: Winnings have been received by "in respect of" an office or employment and are therefore taxable under 6(1)(a).

26 June 1998 Internal T.I. 8M17920 - STRATEGY INSTITUTE ROUND TABLE

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.

STRATEGY INSTITUTE - Round Table

JUNE 26, 1998

Index

Question 1 - Trust Returns

Question 2 - Instalment Payments

Question 3 - Stop-loss Provisions

Question 4 - RRSP Designations by Executor

Question 5 - Division of RRSP on Marriage Breakdown

26 June 1998 Internal T.I. 9814930 - CAPITAL GAIN DESIGNATION TO BENEFICIARY

Unedited CRA Tags
104(21)

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.

STRATEGY INSTITUTE - 1998 Round Table

Question

Designations of Taxable Capital Gains

26 June 1998 Internal T.I. 9813100 - DISCRETIONARY DIVIDENDS

Unedited CRA Tags
56(2) 74.4(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.

STRATEGY INSTITUTE - 1998 Round Table

Question

56(2) - Implications of Neuman v. The Queen

Would the Department apply subsection 56(2) in the following estate freeze situation:

26 June 1998 Internal T.I. 9813110 - INSTALMENT PAYMENTS & TRUST RETURNS

Unedited CRA Tags
156(1) 104(23) 150(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.

Strategy Institute - 1998 Round Table

Trust Returns

Why is it that a Trust Return having a December 31 year-end has to be filed within 90 days from the end of the year, whereas a T5 Return of Investment Income and a T1 Income Tax Return must be filed by February 28 and April 30, respectively?

26 June 1998 Internal T.I. 9814340 - SPOUSAL TRUST VARIATION

Unedited CRA Tags
104(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.

STRATEGY INSTITUTE - 1998 Round Table

Questions

Buy-out of Spouse’s Interest in Spousal Trust

12 June 1998 Internal T.I. 9814370 - POWER OF ATTORNEY

Unedited CRA Tags
251(5)(b)(i) 256(1.4)(a)

Principal Issues: Whether 251(5)(b)(i) and 256(1.4)(a) apply to an enduring power of attorney which is unrestricted and can be exercised at any time?

Position: Yes

Reasons: Wording of 251(5)(b) and 256(1.4) is very broad.

27 May 1998 Internal T.I. 9800567 - EMPLOYEE 401(K) CONTRIBUTIONS

Unedited CRA Tags
6

Principal Issues:
In certain employment situations, employees will elect to have their employers reduce their income and contribute an amount equal to the reduction to an American “401(k)” plan. Is the employee’s income from employment computed before or after this reduction is made?

Position:
The employees’ gross income must be reported.

Reasons:
The Department has historically maintained the position that the employees’ income must be reported prior to the reduction and that the reduction actually reflects a non-deductible employee contribution to the plan. This position forms the best fit with the overall intention of the Act with respect to tax assisted savings for retirement. This position has been upheld in two cases dated February 13, 1998 as noted below.
May 27, 1998
Halifax Taxation Services Office Headquarters
D. Gibson, Director W. C. Harding
(613) 957-8953
Attention: Joe Gillis
980056
XXXXXXXXXX 401(K) Plan

24 April 1998 Internal T.I. 9808027 - MOVING EXPENSES

Unedited CRA Tags
62(1)

Principal Issues: Taxpayer lives 60 kms out of XXXXXXXXXX and works in downtown XXXXXXXXXX . His employer moves the office approx. 1.5 kms to a new location. Taxpayer meets the minimum 40 km distance test and moves his residence to within 6.5 kms of new work location. Whether taxpayer is entitled to $17,090 in moving expenses?

Position: Not entitled to moving expenses.

Reasons: The new work location must be the reason for the move. There would appear to be no valid reason relating to the new work location that would, in and by itself, cause the taxpayer to move.

12 February 1998 Internal T.I. 9725647 - 85(1)

Unedited CRA Tags
85(1) 40(2)(b) 54

Principal Issues:

Whether the principal residence portion and the non-principal residence portion of a subject land are two separate "properties" for the purpose of subsection 85(1) of the Act ?

Position:

No,

Reasons:

Ministerial Letter

26 June 1998 Ministerial Letter 9811508 - EMPLOYMENT, INVESTMENT, ESTATE TAX--INDIANS

Unedited CRA Tags
81(1) 149(1)(c)

Principal Issues: taxation of employment and investment income of Status Indians

Position: Employment income taxation is determined under the Indian Act Exemption for employment income Guidelines; Recalma is basis of investment income taxation position

Reasons: Taxpayer requested general comments

23 June 1998 Ministerial Letter 9808268 - EMPLOYER-PAID TRAINING

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.

June 23, 1998

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter of March 9, 1998, concerning the taxation of employer-paid tuition.

4 March 1998 Ministerial Letter 9802288 - LOSSES, RRIF WITHDRAWALS

Unedited CRA Tags
146.3

Principal Issues: Could we ignore the withdrawal from a RRIF by a broker because the taxpayer did not intend that the amount be withdrawn?

Position: No

Reasons: The Act clearly provides for the taxation of RRIF withdrawals.