Income Tax Severed Letters - 1999-04-16

Miscellaneous

9 April 1999 Miscellaneous 9906056 F - FRAIS LÉGAUX/RÉGIME D'ASSURANCE-SALAIRE

Unedited CRA Tags
8(1)b)

Principales Questions:

1. Est- ce que les frais légaux sont déductibles lorsqu’un individu entreprend des démarches légales pour obtenir des prestations en vertu d’un assurance-salaire ?
2. Si non, est-ce que ces mêmes frais peuvent être déductibles à l’encontre des revenus d’intérêts compensatoires reçus avec les prestations d’assurance-emploi ?

Position Adoptée:

6 April 1999 Miscellaneous 9906196 F - REEE - SENS DE AUTRE SOUSCRIPTEUR

Unedited CRA Tags
204.94(2) 146.1

Position Adoptée:
Lorsque suite au décès d’un particulier, il n’y a pas de souscripteur en vertu des alinéas a) et b) de la définition de souscripteur au paragraphe 146.1 de la Loi.

2 March 1999 Miscellaneous 9903286 - CHARITABLE GIFTS

Unedited CRA Tags
118.1

Principal Issues: Is a portion of an admission fee paid to attend a XXXXXXXXXX considered a charitable gift for the purposes of sections 110.1 and 118.1?

Position: Question of fact but likely no based on information we have at this time.

Reasons: Payments do not appear to meet the accepted definition of gift. May not be voluntary and consideration is received in return.

8 June 1998 Miscellaneous 9802956 - SALARY CONTINUANCE V. SEVERANCE

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

Principal Issues:
Can the amount of a particular payment be treated as a retiring allowance?

Position:
We will endeavor to clarify our position on the nature of such payments. However, in this particular case we would not object to such treatment.

Reasons:
The description of the amount as a “salary continuation payment” as that term is generally used may be a misuse of the term in the circumstances. The amount appears to be a form of severance payment made in periodic payments over the same period of time in which other benefits from employment continued to accrue. At worst the payments are dual nature payments and optimal treatment should be provided to the taxpayer in accordance with the position established in file 9412254.
In contrast we still have concerns on how to distinguish salary continuation from severance payments where significant employment benefits continue and we must endeavor to clarify our position. XXXXXXXXXX

Ruling

1999 Ruling 9818193 - REORGANIZATION, ITAR, SUPERFICIAL LOSS

Unedited CRA Tags
55(3)(b) ITAR 26(7) 40(2)(g)

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
XXXXXXXXXX 3-981819
XXXXXXXXXX

XXXXXXXXXX, 1999

Dear XXXXXXXXXX:

Re: Advance income tax ruling
XXXXXXXXXX
XXXXXXXXXX

1998 Ruling 9731833 - DISPOSITION OF PROPERTY TO RELATED PERSON

Unedited CRA Tags
55(3)(a) 74.4

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.

XXXXXXXXXX
XXXXXXXXXX 973183
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: XXXXXXXXXX
XXXXXXXXXX )
Advance Income Tax Ruling

1998 Ruling 9821583 - DIRECTORS' FEES, PHANTOM STOCK

Unedited CRA Tags
6801(d)

Principal Issues: Will a phantom stock plan for non-employee directors be excluded from SDA rules under 6801(d)?

Position: Yes.

Reasons: Standard plan that meets the requirements of 6801(d).

1998 Ruling 98021433 - REPAYMENT OF INDEBT. 18(9.1) ON REFINANC.

Unedited CRA Tags
20(1)(c) 18(9.1) 212(1)(b)(vii)

Principal Issues:
1. Is the “Premium” on the bonds and the debentures not simply an inducement payment to which 12(1)(x) would apply in the hands of the recipient?
2. Can the Premium reasonably be considered to have been made by Opco in respect of the “substitution or conversion“ of a debt obligation (Existing Bonds and Debentures) to another debt obligation (New Bonds)?
3 Does the Premium constitute a penalty or bonus payable by Opco because of the repayment by Opco for purposes of 18(9.1)(d)?
4. Will the Amendments to the Bond indenture and the Debenture indenture result in a “disposition“ of property?

1998 Ruling 982645A - SUPPLEMENTARY RULING XXXXXXXXXX

Unedited CRA Tags
104

Principal Issues: Supplementary ruling - clarifications of previous ruling (although client OK’d previous draft version...after receiving the final, realized they had changes to be made-----no substantive change in proposed transactions

Position: confirmation of previous rulings

Reasons: no substantive changes

1998 Ruling 9812383 - SUPPL. TO # 980214

Unedited CRA Tags
212(1)(b)(vii)

Principal Issues:

1998 Ruling 9828683 - STOCK DIVIDEND

Unedited CRA Tags
248(1) 52(3)

Principal Issues: What is the "amount" of a stock dividend which has been issued to convert safe income into the cost of shares in the issuing corporation

Position: The amount of the stock dividend is equal to the increase in the paid-up capital of the corporation

Reasons: The amount of a stock dividend is defined in subsection 248(1). Since none of subsections 112(2.1), (2.2) or (2.4) or sections 187.2 or 187.3 apply to the dividend, the amount is equal to the increase in the paid-up capital of the corporation

1998 Ruling 9819893 - SUPPL. TO # 980214

Unedited CRA Tags
212(1)(b)(vii) 18(9.1)

Principal Issues:
Owing to proposed changes in both the bond and debenture indentures resulting from the ongoing process leading up to the offer of redemption of the debts we received a request, following the issuance of the Ruling, for several minor amendments to the proposed transactions.

1998 Ruling 9820073 - UNFUNDED XXXXXXXXXX PENSION, RCA

Unedited CRA Tags
248(1)

Principal Issues: Would an unfunded pension plan be an RCA where the employee's benefits are kept track by the XXXXXXXXXX?

Position: No.

Reasons: The fact that benefit entitlements are maintained by XXXXXXXXXX does not make a plan funded for RCA purposes.

1998 Ruling 9820753 - XXXXXXXXXX - RECLASSIFICATION

Unedited CRA Tags
104 104(7.1) 104(6)

Principal Issues:

Technical Interpretation - External

9 April 1999 External T.I. 9902015 F - DEMANDE D'AGRÉMENT

Unedited CRA Tags
37(1)a)(ii)(B)

Principal Issues: demande agrément en vertu 37(1)a)(ii)(B)

Position:

Reasons:

7 April 1999 External T.I. 9825505 - EMPLOYER CONTRIBUTION TO 401(K) PLAN

Unedited CRA Tags
8308.1 6(1)(g) 60(j)(ii)

Principal Issues: What are the tax consequences of participating in a US 401(k) plan: RRSP deduction limit, rollover to a RRSP, etc.

Position: Probably an EBP.

Reasons: Question of fact.

7 April 1999 External T.I. 9815525 F - AVANTAGES DE L'UTILISATION D'UNE AUTOMOBILE

Unedited CRA Tags
6(1)e) 6(2) 6(1)k) 67.3 6(1)l)

Principales Questions:
Diverses questions relatives aux avantages liés à l'utilisation d'une automobile dans le cadre des fonctions d'un employé.

Position Adoptée:
Réitérer les positions établies du Ministère.

7 April 1999 External T.I. 9904065 - SEVERANCE PAYMENT FROM A US EMPLOYER

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

Principal Issues: Will severance payment received by a Canadian resident from a US employer be taxable in Canada, and if so will the amount be eligible to a rollover under 60(j.1)?

Position: Subject to conditions, yes.

Reasons: Question of fact.

6 April 1999 External T.I. 9908355 F - RPDB - ACQUIS IRRÉVOCABLEMENT

Unedited CRA Tags
147(2)i)(ii)

Position Adoptée:
Le jour où le montant est attribué.

1 April 1999 External T.I. 9907855 - REPORTING AMOUNTS PAID ON TERMINATION

Unedited CRA Tags
Reg 200

Principal Issues: Reporting of legal fees paid by employer N/A

Position: Part of retiring allowance.

Reasons: Employer only agreed to pay retiring allowance; this is just a direction to pay part of it to lawyer.

1 April 1999 External T.I. 9830415 - NEW TRUSTS CREATED BY COURT ORDER

Unedited CRA Tags
108

Principal Issues: Whether trust returns are required to be filed.

Position: Yes.

Reasons: There is a trust and the income of the trust is subject to tax.

31 March 1999 External T.I. 9905415 - INDIANS: INTEREST INCOME

Unedited CRA Tags
81

Principal Issues: Is investment income of Indians exempt, when investments are issued by XXXXXXXXXX Trust.

Position: Question of fact: depends on income generating activity of XXXXXXXXXX

Reasons: Recalma cases

31 March 1999 External T.I. 9906715 F - REVENU IMPOSABLE MODIFIÉ

Unedited CRA Tags
127.52(1)

Position Adoptée:
N/A

31 March 1999 External T.I. 9817045 F - CCA- CANALISATION ÉGOUT ET CONDUITE EAU

Unedited CRA Tags
20(1)

Principal Issues: cca - parc maisons mobiles égout et conduite eau

Position: cat. 8

Reasons: para 8 it-472

31 March 1999 External T.I. 9907495 - IT-352R2 EMPLOYEE'S EXPENSES

Unedited CRA Tags
8

Principal Issues: Amendment to IT-352 (Employee's Expenses)

Position: No amendment required but will consider in future

Reasons: Information available in Guide T4044 and Information Bulletin IT-522R

31 March 1999 External T.I. 9908105 - NON-CASH AWARDS TO EMPLOYEES

Unedited CRA Tags
6

Principal Issues: Non-cash awards included in income.

Position: Yes

Reasons: Paragraph 6(1)(a) includes value of any benefit.

30 March 1999 External T.I. 9822845 F - PENSION ALIMENTAIRE

Unedited CRA Tags
56.1(4)

Principales Questions:
Est-ce qu’une pension de XXXXXXXXXX $ par semaine qui était imposable sera toujours à inclure dans le revenu de la contribuable lors de sa déclaration de revenu de 1998, étant donné la demande d’annulation de pension rejetée fixée à XXXXXXXXXX $ et ramenée à XXXXXXXXXX $ ?

Position Adoptée:
Non imposable

29 March 1999 External T.I. 9900635 - CHILD SUPPORT

Unedited CRA Tags
56(1)(b)

Principal Issues:
An individual has asked for clarification on support payments received from her ex-husband from 1991 to 1997. From her letter it is unclear whether child support was payable pursuant to a court order.

29 March 1999 External T.I. 9905515 - TRANSFER OF PROPERTY TO A NON-RESIDENT TRUST

Unedited CRA Tags
54

Principal Issues: Whether a transfer of real estate by a non-resident individual settlor to a non-resident trust with beneficiaries in addition to the settlor would constitute a full fair market value disposition for Canadian tax purposes?

Position: Yes.

Reasons: There is a change in beneficial ownership of the property. The legislative proposals on trusts dated December 23, 1998 do not affect our position.

29 March 1999 External T.I. 9826545 - STATUS OF PRE-72 TRUST

Unedited CRA Tags
122

Principal Issues: Whether a pre-1972 trust has or will receive property by way of gift if it receives property, or revokes its right to receive property, pursuant to certain assignments.

Position: No position taken; general comments provided.

Reasons: Insufficient information.

29 March 1999 External T.I. 9817825 - SPECIFIED ANIMALS

Unedited CRA Tags
28(1.2)

Principal Issues: Are bison, elk, deer, alpaca, ostriches, lamas, boar goats "specified animals" for purposes of subsection 28(1.2) of the Act?

Position: Bison, yes. The other listed animals - no.

Reasons: "Specified animals" include horse and bovine animals registered under the Animal Pedigree Act. The above listed animals, with the exception of bison, are not considered bovine animals.

25 March 1999 External T.I. 9805975 F - 15(1.1) STOCK DIVIDEND AFTER AN ESTATE FREEZE

Unedited CRA Tags
15(1.1)

Principal Issues: Is ss. 15(1.1) applicable to the stock dividend issued a few months after a corporate freeze by father?

Position: No

Reasons: Stock dividend was paid to all shareholders in proportion of their interest in the corporation. Furthermore, the value of the stock dividend did not exceed the increase in FMV of the corporation since the corporate freeze.

25 March 1999 External T.I. 9904035 - EMPLOYMENT USE OF MOTOR VEHICLE

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

Principal Issues:
A school board refused to confirm that a supply teacher was required to use his motor vehicle in connection with his teaching position. The local TSO confirmed that this was the correct procedure. The Board would like this opinion confirmed in writing.

25 March 1999 External T.I. 9821565 - FTC OR DEDUCTION FOR U.S. STATE TAXES

Unedited CRA Tags
115(2)(e)(i)(A) Art XXIX U.S. Treaty

Principal Issues: Whether U.S. state tax is creditable or deductible where the taxpayer is a citizen of Canada and not a citizen of the U.S. working for the Canadian Embassy in the U.S.

Position: No

Reasons: There is no provision in the Income Tax Act to provide for a foreign tax credit or a deduction from income for such U.S. state taxes.

24 March 1999 External T.I. 9830555 - EVENT OF DEFAULT -

Unedited CRA Tags
212(1)(b)(vii)

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.

PRINCIPAL ISSUE:

The Department’s position concerning events of default for the withholding tax exemption under 212(1)(b)(vii).

Position TAKEN:
	State the position in the 1996 Conference Report and the  Technical   News  	No. 9.

REASON FOR POSITION TAKEN:

23 March 1999 External T.I. 9906905 - EMPLOYEE AWARD PROGRAM

Unedited CRA Tags
6(1)(a)

Principal Issues: Employer has a program which provides an internal currency, award credits, used to recognize employees. Award credits are earned by making suggestions to improve the business, by demonstrating extraordinary customer service, as awards for outstanding job performance, etc. Each award credit has a monetary value. The program provides a banking system and a multitude of redemption options, including gift certificates, merchandise, and travel. Are awards for this program taxable to the employee at the time the employee receives the award credits or when the employee actually exchanges the award credits for the award?

Position: The taxation of the benefit occurs at the time the award credits are redeemed by the employee for merchandise, travel, gift certificates, etc.

Reasons: Similar position taken in other files

23 March 1999 External T.I. 9903225 - TAXABLE BENEFIT FOR MEALS

Unedited CRA Tags
6(1)(a)

Principal Issues:

19 March 1999 External T.I. 9819495 - DEFINITION OF SETTLOR

Unedited CRA Tags
108(1)

Principal Issues: What would be the tax consequences of a variation to the terms of a trust which would result in a change of settlor for trust law purposes?

Position: No comments will be provided except in the context of an advance tax ruling.

Reasons: We have never dealt with this issue before. Such a change would have an impact on the trust’s ability to make preferred beneficiary elections. We are concerned with retroactive tax planning.

19 March 1999 External T.I. 9822685 - TAXATION OF IRAS RECEIVED OUT OF AN ESTATE

Unedited CRA Tags
56 104(13)

Principal Issues: Taxation of IRAs received by a Canadian beneficiary from a U.S. estate

Position: 1. Subsection 56(1) of the Act does not apply. 2. However, subsection 104(13) of the Act may apply.

Reasons: 1. The Canadian beneficiary under the trust is not a designated beneficiary of the IRA (the Greg case). 2. Subsection 104(13) of the Act applies because the distribution from the non-resident trust to the beneficiary is in the same year of the income inclusion at the trust level. Also, the IRA proceeds triggered an income inclusion for U.S. tax purposes.

18 March 1999 External T.I. 9826695 - LOSS UTILIZATION

Unedited CRA Tags
111(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.

XXXXXXXXXX 		982669
D. Boychuk
March 17, 1999

Dear Sir:

Re: Loss Utilization

17 March 1999 External T.I. 9904015 - OUT-OF COURT SETTLEMENT - RETIRING ALLOWANCE

Unedited CRA Tags
248(1)

Principal Issues: Whether an amount paid to an employee by an employer under an out-of-court settlement is taxable, and if so, is a retiring allowance?

Position: Question of fact.

Reasons: Amount received as damages arises from a loss of office or employment may be a retiring allowance unless the amount, or any portion thereof, is determined in accordance with human rights legislation which is a question of fact.

10 March 1999 External T.I. 9902555 - SMALL BUISNESS CORPORATION

Unedited CRA Tags
248(1) 110.6

Principal Issues: A hypothetical situation has been provided in respect of which we have been asked whether a corporation can be considered to be carrying on business in Canada. Other issues were raised relating to the definitions of “qualifying small business corporation share” in subsection 110.6(1) of the Income Tax Act (the “Act”) and “small business corporation” in subsection 248(1) of the Act.

Position: General comments were provided

Reasons: Limited information was provided

10 March 1999 External T.I. 9828765 - PERIODICAL

Unedited CRA Tags
19

Principal Issues: Is an annual telephone directory a periodical?

Position: No.

Reasons: Policy and discussion with CAVCO

14 January 1999 External T.I. 9818955 - INVOLUNTARY DISSOLUTION

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.

XXXXXXXXXX 		981895
D. Boychuk
Attention:  XXXXXXXXXX 

January 14, 1999

Dear Sir:

Re: Issues Arising from Involuntary Dissolution

18 November 1998 External T.I. 9610525 - DETERMINATION OF SAFE INCOME

Unedited CRA Tags
55(2) 55(5)(c)

Principal Issues: Whether safe income entitlement of shares of a remaining shareholder in a "single-wing buttefly" is affected by the butterfly.

Position: Yes

Reasons: Safe income entitlement of remaining shareholder(s) will not be affected only if redemption of the shares of the departing shareholder does not reduce fmv of the remaining shares.

27 October 1998 External T.I. 9824750 F - KNOW-HOW

Unedited CRA Tags
85(1.1)

Principal Issues: Est-ce que des connaissances constituent des biens admissibles selon 85(1.1)?

Position: Dépend de la nature des connaissances et de la nature des droits sur ces connaissances.

Reasons:

13 October 1998 External T.I. 9808805 - JOINT TENENCY

Unedited CRA Tags
54 69 70(5)

Principal Issues: Whether the transfer of title of wholly owned property to joint ownership constitutes a disposition when there is no change in beneficial ownership.

Position: No disposition.

Reasons: Paragraph (e) of the definition of the term disposition in section 54 of the Act makes it clear that a disposition will not occur as a result of any transfer of
property by virtue of which there is a change in legal ownership without any change in beneficial ownership. It is not clear if in such a situation, probate fees upon the death of one of the joint owners would be eliminated.

28 January 1998 External T.I. 9722275 F - CONVENTION CANADA-IRLANDE

Unedited CRA Tags
212(1)(l)

Principal Issues: Quel est le taux de retenue pour paiement forfétaire visé par 212(1)(l) si paiement effectué à résident de Irlande?

Position: 15%

Reasons: Convention

Technical Interpretation - Internal

7 April 1999 Internal T.I. 9904057 - RCA - DISTRIBUTION & WITHHOLDING

Unedited CRA Tags
207.5(2) 153(1)(b) 153(1)(q)

Principal Issues:

1. Are mutual funds properties that can be used in the election under 207.5(2)?
2. Whether a distribution, withholding and reporting as consequence of a letter of credit held by a RCA trust is the responsibility of the trust or the employer?
3. Are there any restrictions on payments of benefits out of or under a RCA?

Position:

1. No.
2. The custodian of the RCA trust.
3. Terms of the RCA

Reasons:

30 March 1999 Internal T.I. 9907237 - MEALS FOR SELF-EMPLOYED TRUCKER.

Unedited CRA Tags
18(1)(a) 67.1 18(1)(h)

Principal Issues: Whether the meal expense for a self-employed trucker is subject to the 50% rule in 67.1.

Position: Yes.

Reasons: Section 67.1 applies for all purposes of the Act except sections 62, 63, and 118.2.

26 March 1999 Internal T.I. 9901777 - INDIAN IN BUSINESS OF TRUCKING.

Unedited CRA Tags
81(1)(a)

Principal Issues:
Whether the income from a trucking business owned by an Indian is taxable. The business consists of hauling and delivering goods from off reserve companies to off reserve customers. The drivers consist of employees and independent truckers, the former who receive XXXXXXXXXX % of gross billings and the latter who receive XXXXXXXXXX % of the gross billings.

Position: The income is taxable.

Reasons:
According to the principles established in Southwind, the off reserve location of the revenue-generating activities of the business would be considered very significant in connecting the taxpayer's business income to a location off the reserve. The activities that did take place on the reserve, i.e., parking and servicing the trucks and scheduling and dispatching loads, were, in our view, incidental business activities and could easily have been done off reserve. It is apparent that the taxpayer has entered the "commercial mainstream," and should therefore be taxed like other taxpayers. However, to the extent that the business income is derived from on reserve activities, it is our view that such portion of the business income should be determined and treated as tax exempt.

26 March 1999 Internal T.I. 9903097 F - BFT- REDEVANCES - COUT DE LOCATION

Unedited CRA Tags
5202 reg

Principal Issues: Définition du cft - redevances payées pour obtenir des droits, licences, informations et services.

Position: Des redevances peuvent constituer un coût de location pour les fins de l'article 5200 du Règlement si elles sont directement attribuables à des activités admissibles.

Reasons: Paragraphe 11 du IT-477, jurisprudence et CCM 7-3801 7-3708 A

11 March 1999 Internal T.I. 9903137 - EMPLOYER PAID UNIVERSITY

Unedited CRA Tags
6

Principal Issues: employer agrees to pay student's cost of degree/diploma in return for student working holidays and after graduation.

Position: employment benefit but not taxable if meet technical news 13

Reasons: Paid per employment agreement

2 March 1999 Internal T.I. 9901747 - MEANING OF FARMING, QUALIFIED FARM PROPERTY

Unedited CRA Tags
248(1) farming defn 110.6(1) qualified farm property 110.6(2)

Principal Issues:

1) Whether the activities of seeding, raising, and harvesting shellfish commercially, on a large scale, would meet the definition of “farming” as defined in subsection 248(1) of the Act.
2) If so, then would a tenure be considered “qualified farm property”, as defined in subsection 110.6(1) of the Act, and would a gain arising on the disposition of a tenure by an individual be considered to qualify for the capital gains exemption under subsection 110.6(2) of the Act?

Position:

1) Question of fact whether the activities carried on by a particular shellfish farm operator would qualify as “farming” for purposes of subsection 248(1) of the Act; however, on balance, the activities of growers of shellfish that follow a process whereby the shellfish are seeded, raised and harvested commercially, on a large scale, would likely be considered to be “farming” for purposes of that definition in subsection 248(1).

2) We do not have sufficient information about tenures to determine if they may qualify as “qualified farm property” in subsection 110.6(1).

Reasons:

2 March 1999 Internal T.I. 9904837 - INDIAN ACT EXEMPTION MEDICAL DRIVERS

Unedited CRA Tags
81(1)(a)

Principal Issues: Is the business income of a status Indian from a medical transportation service exempt from taxation?

Position: In this factual situation, the business income is exempt.

Reasons: The medical trips originate from and return to the reserve; the trips are coordinated and arranged on reserve and involve on reserve residents.

1 March 1999 Internal T.I. 9901997 - XXXXXXXXXX HONORIA PAID TO ELDERS

Unedited CRA Tags
56(1)d)

Principal Issues: annuity payments to Yukon Elders of a band

Position: Amounts are taxable as annuity or trust distributions

Reasons: income per 56(1)(a) or 104(13) and the Indian Act exemption has been given up.

22 February 1999 Internal T.I. 9832477 F - INTERPRETATION 18(2)

Unedited CRA Tags
18(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.

16 February 1999 Internal T.I. 9901667 F - PATIE I.3

Unedited CRA Tags
181.3(3)

Principales Questions:
1. Doit-on déterminer la nature d’un montant selon les PCGR comme l’a indiqué l’affaire Oerlikon 1997 DTC 694?
2. Peut-on inclure un inventaire de fournitures dans l’expression « bien corporel »?

Position Adoptée:
1. Non, il faut déterminer le caractère juridique du montant.
2. Oui.

19 October 1998 Internal T.I. 9809597 F - PRÊT À L'HABITATION - 15(2.4)

Unedited CRA Tags
15(2.4)

Principales Questions:

Est-ce qu’un prêt à l’habitation fait par une société à un actionnaire d’une société liée est à inclure au revenu de ce dernier selon le paragraphe 15(2) de la Loi ou s’il en est exempté selon le paragraphe 15(2.4) de la Loi dans la situation particulière soumise ?

Position Adoptée:

30 July 1998 Internal T.I. 9811877 - PAYMENTS FOR NON-PERFORMANCE OF MINE WORK

Unedited CRA Tags
66.1 66.2 9 14(15) 1211

Principal Issues: Whether the Crown charges for non-performance or under-performance of exploration or/and mining work required under a Quebec mining concession, are deductible in computing income.

Position: They can be deductible but it also depends on facts of a particular situation.

Reasons: Paragraph 1211(b) of the Regulations

Ministerial Letter

30 March 1999 Ministerial Letter 9902828 - CHRISTMAS PARTY EXPENSES

Unedited CRA Tags
6(1)(a)

Principal Issues: Is it fair to include a taxable benefit in income, when the cost of a Christmas party exceeds $100 per employee?

Position: Comments from Technical News Number 15 were provided.

Reasons: The Act is clear regarding benefits. However the Technical News provides some relief.

18 March 1999 Ministerial Letter 9902808 - ALBERTA HEALTH CARE PREMIUMS

Unedited CRA Tags
6(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

March 18, 1999

Dear XXXXXXXXXX :

9 March 1999 Ministerial Letter 9902328 - CROWN LAND CUTTING: XXXXXXXXXX . INDIANS

Unedited CRA Tags
81

Principal Issues: Indians working off reserve

Position: business income likely taxable; employment may not be if employer is resident on reserve

Reasons: previous positions