Income Tax Severed Letters - 2000-02-18

Miscellaneous

25 January 2000 Miscellaneous 199900008125 - COOPERATIVE DEBT AS QUALIFIED INVESTMENT

Unedited CRA Tags
REG 4900(1)(h) 136(2) 248(1)

Principal Issues:?
Does a particular cooperative corporation satisfy the conditions of Regulation 4900(1)(h)?

Position:
It is a question of fact. We provided comments given in prior letters on the meaning of "shareholder" with added comments on dividends and share terms.

Reasons:
The corporation must have 100 shareholders (or 50 corporate shareholders if all shareholders are corporations) throughout a specified period. Either the test is met or it is not. Creating new shares may clarify the situation but the coop may already meet the requirements. The terms of the shares should not have any impact in themselves.

25 January 2000 Miscellaneous 1999-000791A - DSLP RETURN TO WORK AND TIMING OF LEAVE

Unedited CRA Tags
REG 6801(a)

Principal Issues:
1. Must a person return to employment after a leave of absence is taken under a DSLP?
2. Can a leave of absence be taken part way through a deferral period?

Position:.
1. Yes.
2. No.

Reasons:.
1. The Regulations require a person to return to employment after the leave.
2. The Regulations require the leave of absence to follow immediately after a deferral period.

20 January 2000 Miscellaneous 2000-0000246 - CAR AS A RETIRING ALLOWANCE

Unedited CRA Tags
56(a)(a)(ii)

Principal Issues: Where an employer buys out an automobile lease and transfers the ownership of the automobile to an employee as part of the employee's termination package on retirement or loss of employment, will the fair market value of the automobile qualify as part of the employee's retiring allowance?

Position: Yes.

Reasons: Where property is received is part of the severance package on termination of employment, the fair market value of the property is considered part of the retiring allowance received by the employee.

22 December 1999 Miscellaneous 9931176 F - DÉFINITION - DÉPENSE DE MAIN D'OEUVRE

Unedited CRA Tags
125.4

Principales Questions: Sens de "directement attribuable" dans la définition de dépense de main d'oeuvre

Position Adoptée: Sens courant

Ruling

1999 Ruling 9931653 - BUTTERFLY REORGANIZATION

Unedited CRA Tags
55(3)(b) 86(1)

Principal Issues: change in facts - butterfly ruling

Position: supplemental issued

Reasons: conforms to practice and law

1999 Ruling 9901073 - BENEFITS OUT OF A PENSION PLAN

Unedited CRA Tags
56(1)

Principal Issues:
Are amounts received by employees on the settlement of litigation pertaining to the entitlement to certain pension funds taxable.

Position:
Yes.

Reasons:
The provisions of subsection 56(1) of the Act will apply to the amounts to be paid

1999 Ruling 9924003 - LOSS CONSOLIDATION - SUPPLEMENTARY

Unedited CRA Tags
20(1)(c)

Principal Issues:

1999 Ruling 9921403 - SUPLLEMENTARY TO 990262

Unedited CRA Tags
40(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 						3-992140

Attention: XXXXXXXXXX

XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX , 1999

Dear Sirs:

Re: XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Advance Income Tax Ruling

1999 Ruling 9933013 - DEFERRED SHARE PLAN

Unedited CRA Tags
REG 6801(d)

Principal Issues: Amend ruling to allow deduction of amounts that are payable

Position: Amended ruling provided.

Reasons: The requested wording is acceptable.

1999 Ruling 9911913 - REORGANIZATION

Unedited CRA Tags
55(3)(a)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

XXXXXXXXXX 						5-991191

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Re: Advance income tax ruling #3-990590
dated XXXXXXXXXX, 1999 issued to
XXXXXXXXXX (the "Ruling Letter")

1999 Ruling 9924943 - SHAREHOLDER BENEFIT - AIRPLANE

Unedited CRA Tags
15(1) IT-160R3

Principal Issues: Whether there is a shareholder benefit where an airplane is transferred to a corporation under section 85 to avoid potential liability beyond insurance coverage and the airplane is used solely for personal purposes by the taxpayer who is the sole shareholder of the corporation.

Position: Subsection 15(1) of the Act will not be applied to include an amount in the income of the taxpayer for the year with respect to his personal use of an airplane owned by a corporation.

Reasons: Subsection 15(1) will not apply provided that the airplane is not used for commercial purposes and all expenses of the corporation are paid by the taxpayer personally.

1999 Ruling 9921413 - CANADIAN FILM OR VIDEO PRODUCTION TAX CREDIT

Unedited CRA Tags
125.4 88(1)(e.2) 87(2)(j.94) 1106(1)

Principal Issues:
1. Will a particular distribution agreement result in the film tax credit being reduced or eliminated?
2. Will the wind-up of a single-purpose production company into its parent result in the application of the investor rules to deny the Canadian film or video production tax credit?
3. Will the acquisition of shares of an old production company and its subsequent wind-up result in application of the investor rules to deny the Canadian film or video production tax credit?

Position:
1. Not if the distribution agreement represents a fair market value commercial arrangement and the distributor does not acquire any portion of the legal and/or beneficial ownership of the production copyright.
2. No.
3. No.

Reasons:
1. In this fact situation, although the distributor would be an investor, it will not acquire legal or beneficial ownership of the production and we also do not otherwise consider that it will be able to deduct an amount in respect of the production, as required for subsection 125.4(4) of the Act to apply.
2. Per 88(1)(e.2), paragraph 87(2)(j.94) applies with modifications so that for the purposes of 125.4, Aco is deemed to be the same corporation as, and a continuation of Prodco. Therefore, Aco is not an investor and 125.4(4) of the Act will not have application. We also considered the definition of excluded production in subsection 1106(1) of the Regulations. The proposed transactions would not result in there being an excluded production since the Regulations contemplate transfers of copyright within Canadian corporate families.
3. Per 88(1)(e.2), paragraph 87(2)(j.94) applies with modifications so that for the purposes of 125.4, Aco is deemed to be the same corporation as, and a continuation of Old Prodco. Therefore, Aco is not an investor and 125.4(4) of the Act will not have application. We also considered the definition of excluded production in subsection 1106(1) of the Regulations. The proposed transactions would not result in there being an excluded production since the Regulations contemplate transfers of copyright within Canadian corporate families.

1999 Ruling 9919773 F - TRANSFERT ENTREPRISE À UNE FIDUCIE

Unedited CRA Tags
75(2) 181.2(3) 15(1) 80.4(2)

Principales Questions: 1- Les dispositions du paragraphe 75(2) s'appliquent-elles lorsque le fiduciaire d'une fiducie transfère des actifs d'entreprise à la fiducie?
2- Les dispositions du paragraphe 80.4(2) de la Loi s'appliquent-elles à un prêt consenti à une fiducie par une institution financière lorsque ce prêt est garanti par une société dont les actionnaires sont des personnes liées aux bénéficiaires de la fiducie? Le prêt servira à rembourser une dette que la fiducie contractera en faveur de la société suite au transfert en faveur de la fiducie de l'entreprise exploitée par cette société.
3-La garantie consentie par une société en faveur d'une fiducie permettant à cette dernière d'emprunter auprès d'une institution financière les montants nécessaires pour rembourser la société constitue-t-elle un avantage, visé au paragraphe 15(1) de la Loi, pour les actionnaires de la société lorsque ces derniers sont tous bénéficiaires de la fiducie?
4-Le passif figurant aux états financiers d'une fiducie doit-il être inclus dans le calcul du «capital imposable utilisé au Canada» de la société qui a transféré son entreprise à la société?

Position Adoptée: 1- Les revenus ou les pertes de la fiducie provenant des biens qui seront utilisés dans l'exploitation de l'entreprise, ou provenant des biens y substitués, ne seront pas réputés, en vertu des dispositions prévues au paragraphe 75(2) de la Loi, être des revenus ou des pertes du fiduciaire qui a transféré ces biens.
Les dispositions du paragraphe 75(2) ne s'appliqueront pas à du revenu d'entreprise.
2- Non. Les dispositions du paragraphe 80.4(3) de la Loi s'appliquent. De plus, le prêt initial n'est pas visé par les dispositions du paragraphe 80.4(2) de la Loi puisqu'il s'agit d'un prêt conclu entre sociétés. Par ailleurs, la fiducie contractera sa dette en faveur de la société en conséquence du transfert de l'entreprise de la société.
3-Non puisque d'une part, la fiducie paie à la société un montant égal au prix du marché pour l'octroi d'une garantie comparable et d'autre part, le capital ainsi que les intérêts sur ce prêt seront payés par la fiducie à même ses revenus.
4-Non puisqu'il s'agit d'une fiducie véritable. De plus, la société n'est pas bénéficiaire.

1999 Ruling 9915993 - BUMP ON A VERTICAL AMALGAMATION

Unedited CRA Tags
87(11) 88(1)(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 						991599

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Re: XXXXXXXXXX

This is in reply to your letters of XXXXXXXXXX, wherein you requested an advance income tax ruling in respect of the above-noted taxpayer.

1999 Ruling 9926643 - LOSS CONSOLIDATION

Unedited CRA Tags
112(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
XXXXXXXXXX 992664
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Subject: XXXXXXXXXX
XXXXXXXXXX

1999 Ruling 9922063 - SUBSIDIARY OF A TAX EXEMPT CORPORATION

Unedited CRA Tags
149(1)(d.4)

Principal Issues:

Whether a subsidiary of a corporation would qualify for the exemption under paragraph 149(1)(d.4).

Position:

Yes, provided that the corporation is a corporation as described in paragraph 149(1)(d.3).

Reasons:

1999 Ruling 9917313 - XXXXXXXXXX

Unedited CRA Tags
132(6) 104(6) 104(13) 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.

PRINCIPAL ISSUE:

1999 Ruling 9929053 - DEFERRED SHARE UNIT PLAN

Unedited CRA Tags
REG 6801(d)

Principal Issues:
Does the proposed plan satisfy regulation 6801(d)?

Position: Yes

Reasons:
Meets 6801(d).

1999 Ruling 9923043 - MUTUAL FUND TRUST USING DERIVATIVES

Unedited CRA Tags
206(1)

Principal Issues: Would the use of a derivative that is foreign property by a mutual fund trust that is a registered investment to mimic the return of another mutual fund trust that holds foreign property cause the registered investment to be subject to Part XI tax and if not, would such a transaction be subject to GAAR?

Position: No, provided that the cost amount of all foreign property held by the registered investment does not exceed 20%. GAAR is not applicable.

Reasons: The cost amount of the forward contract is based on legal fees, brokerage fees and any similar fees related to the entering into of the forward contract (expected to be nominal). Thus it is not significant to the rulings that this forward contract is foreign property based on the fact that the counterparty is non-resident and the contract is to be settled in foreign currency which means that the contract entitles the Fund to property that is foreign property (notwithstanding that a deposit held in Canada which is denominated in foreign currency is not foreign property). Provided that the mutual fund trust limits its investments in foreign property to 20%, the mutual fund trust that is a registered investment will not be subject to Part XI tax.

1999 Ruling 9917743 - RRSP MUTUAL FUND TRUST WITH DERIVATIVES

Unedited CRA Tags
206(1)

Principal Issues: Does the use of derivatives by one mutual fund trust to mimic the return of another mutual fund trust that holds foreign property qualify to be a registered investment and if so, would such a transaction be subject to GAAR?

Position: Yes and GAAR is not applicable.

Reasons: The cost amount of the forward contract will be based on legal fees, brokerage fees and any similar fees related to the entering into of the forward contract (expected to be nominal). Thus it is not significant to the rulings that this forward contract is foreign property based on the fact that the counterparty is non-resident and the contract is to be settled in foreign currency which means that the contract entitles the Fund to property that is foreign property (notwithstanding that a deposit held in Canada which is denominated in foreign currency is not foreign property). Provided that the mutual fund trust limits its investments in foreign property to 20%, the mutual fund trust will qualify as a registered investment.

1999 Ruling 9930973 - DEFERRED SHARE UNIT PLAN

Unedited CRA Tags
REG 6801(D)

Principal Issues:
Minor change in facts.

Position:
Change does not affect rulings given in 991942.

Reasons:
The plan meets all the conditions in paragraph (d) of Regulation 6801.

1999 Ruling 9923073 - MUTUAL FUND TRUST USING DERIVATIVES

Unedited CRA Tags
206(1)

Principal Issues: Are the proposed Forward Contracts considered to be foreign property and if not, would such a transaction be subject to GAAR?

Position: No and GAAR is not applicable.

Reasons: The definition of foreign property in 206(1) of the Act includes property which is exchangeable for, convertible to or confers a right to acquire foreign property. Since the Forward Contract described in the ruling is settled in Canadian dollars and does not entitle the Funds to units of the Underlying Funds, and the Contract would not otherwise be considered foreign property based on the situs of the contract and does not involve the indebtedness of a non-resident person, we can reasonably conclude that the Forward Contract is not foreign property..

1999 Ruling 9919423 - DEFERRED SHARE UNIT PLAN

Unedited CRA Tags
REG 6801(d)

Principal Issues:
Whether arrangement is exempted from SDA definition by virtue of 6801(d);

Position:
Yes;

Reasons:
All requirements in 6801(d) are met.

1999 Ruling 9931133 - STRUCTURED SETTLEMENT

Unedited CRA Tags
56(1)(d) 18(1)(a) 18(1)(h)

Principal Issues:

1999 Ruling 9923993 - REORGANIZATION

Unedited CRA Tags
55(3)(b)

Principal Issues: standard ruling, no issues

Position:

Reasons:

1999 Ruling 9920603 - NON-RESIDENT - CARRYING ON BUSINESS IN CDA

Unedited CRA Tags
2(3) 253

Principal Issues: Where a Canadian company is engaged by a non-resident Fund manager to provide accounting and clerical services in Canada, whether the non- resident Fund or its manager carries on business in Canada

Position: No

Reasons: Based on the specific facts and proposed transactions the Canadian company is not acting in the capacity of an agent for the non-residents and is not simply an extension of the non-residents.

XXXXXXXXXX 992060

Technical Interpretation - External

11 February 2000 External T.I. 1999-0004935 - ACB OF PROMISSORY NOTE REC'D FROM SPOUSE

Unedited CRA Tags
73(1) 69(1)(a) 54

Principal Issues: If the taxpayer receives a demand non-interest bearing promissory note as consideration for property transferred to a spousal trust, will the adjusted cost base of the promissory note be equal to the stated value of the note (which should also be equal to its fair market value)?

Position: Question of fact.

Reasons: The ACB of capital property is equal to the cost to the taxpayer plus or minus the adjustments described in subsections 53(1) and (2). Since "cost" is not a defined term in the Act, reference must be made to its ordinary meaning and related jurisprudence. On this basis, we accept that cost means the sum or equivalent expended, paid or charged for something. However, in some cases, property is considered to have been acquired at an amount other than cost by virtue of specific provisions in the Act. For example, in a situation where property is acquired from a non-arm's length person at an amount in excess of the fair market value thereof, paragraph 69(1)(a) provides that the taxpayer is deemed to have acquired the property at the fair market value of that property rather at the amount paid for it. Finally, where a sales agreement does not clearly support the contention that a promissory note has been accepted as absolute payment, it is arguable that the note may not be regarded as capital property that has been acquired.

10 February 2000 External T.I. 2000-0005215 - NON-RESIDENT-PERSONAL TAX CREDITS

Unedited CRA Tags
118

Principal Issues: Referral of the taxpayer's enquiry to the International Taxation Services Office for their action.

Position: N/A

Reasons: N/A

7 February 2000 External T.I. 2000-0000555 - NURSING HOME FEES-FOOD & ACCOM.

Unedited CRA Tags
118.2(2)(b)

Principal Issues: Whether all regular fees paid to a nursing home, including any portion for food and accommodation, qualify as amounts paid for full-time care in a nursing home.

Position: Yes, if paid to a regular nursing home.

Reasons: An amount charged for food and accommodation in a place which does not ordinarily provide full-time nursing care to its residents would not be considered an amount paid for full-time care in a nursing home.

7 February 2000 External T.I. 1999-0009195 - related person

Unedited CRA Tags
251(3) 55(5)(e)

Principal Issues: referred writer to new legislation which addresses his concerns

Position:

Reasons:

7 February 2000 External T.I. 2000-0003955 - DISCOUNT AS RETIRING ALLOWANCE

Unedited CRA Tags
56(1)(a)(ii)

Principal Issues: On retirement, will the amount of a discount from fair market value offered to the retiring employee on buy-out of an employer-leased automobile qualify as a retiring allowance?

Position: Yes.

Reasons: The fair market value of any benefit received in respect of long service will qualify as a retiring allowance for purposes of the Act.

7 February 2000 External T.I. 1999-0013925 - TAX. DEDUCT. OF WCB BENEFITS

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

Principal Issues: Taxability and deductibility of Workers' Compensation Board benefits

Position: Exception to the general rule. While workers' compensation benefits are included in individual's income, they are deductible in computing taxable income.

Reasons: Workers' compensation benefits are deductible in the computation of taxable income because they are designed to replace a portion of after-tax earnings. Benefit levels have been set on the assumption that they would not be taxable. In this context, taxing these benefits could create a hardship for those receiving them.

4 February 2000 External T.I. 1999-0008005 - TRANSPORT EMPLOYEE TRAVEL EXPENSES

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

Principal Issues:

4 February 2000 External T.I. 1999-0014245 - PHSP-ADMINISTRATOR PLANS FOR PROP.

Unedited CRA Tags
20.01

Principal Issues: Whether a plan which consists of a contract between a proprietor and an administrator under which the latter agrees to reimburse the proprietor and at least one full-time employee for medical expenses (in return for cost plus a fee) qualifies as a PHSP.

Position: Whether a plan qualifies as a PHSP is a question of fact. However, the plan would qualify as a plan of insurance.

Reasons: The required elements of insurance exist, i.e., (a) an undertaking by one person (the proprietor), (b) to indemnify another person( the employee), (c) for an agreed consideration, (d) from a loss or liability in respect of an event, (e) the happening of which is uncertain.

4 February 2000 External T.I. 2000-0005705 - bump

Unedited CRA Tags
88(1)(d) 245

Principal Issues:
1. Whether Pco can avail itself of the bump under paragraph 88(1)(d) in respect of certain farm land previously owned by Vco?

2. Whether our response would differ if Pco does not deal at arm's length with Vco?

3, Whether the transactions would be subject to GAAR?

Position:
1. Provided that the farm land represents capital property to Vco at the time that Pco acquires control of Vco, Pco should be able to designate a bump.

2. Under 88(1)(d.2) Pco is deemed to have acquired control of Vco at the time that Vendor acquired control of Vco. Consequently, the amount of the bump will be limited.

The farm land will not be ineligible property under 88(1)(c)(vi) since no person, other than a specified person, will acquire the farm land or any substituted property.

3. Provided general disclaimer.

Reasons:
1. Interpretation of the law
2. Interpretation of the law
3. Cannot comment on GAAR in general situation

3 February 2000 External T.I. 1999-9909275 F - FRAIS DE PLACEMENTS

Unedited CRA Tags
18(1)a) 18(1)b) 20(1)a) 67

Principales Questions:
1. Les dépenses encourues pour un ordinateur, des logiciels, une imprimante et un photocopieur sont-elles déductibles dans le calcul du revenu de bien?
2. Les frais d'abonnement à des revues et des journaux spécialisés, sont-ils déductibles dans le calcul du revenu de bien?
3. Les frais de fonctionnement d'une voiture sont-ils déductibles dans le calcul du revenu de bien?

Position Adoptée:
1. Non.
2. Non.
3. Non.

3 February 2000 External T.I. 1999-0006165 - RESERVE - SALE OF LAND

Unedited CRA Tags
20(1)(n)

Principal Issues: Where land is sold by a taxpayer and the entire profit is reported in the year of sale (1999), can a reasonable reserve be claimed under paragraph 20(1)(n) of the Income Tax Act (the "Act") in 2000 in respect of the unrealized profit? (an amount in respect of the proceeds is not payable until the year 2002)

Position: Yes

Reasons: Paragraph 20(1)(n) of the Act permits the taxpayer to claim a reasonable reserve in respect of the amount that can reasonably be regarded as a portion of the profit from the sale.

3 February 2000 External T.I. 1999-0011835 - Access to Successored Resource Pools

Unedited CRA Tags
66.7(3) 66.7(4) 66.7(5) 66.7(10)

Principal Issues: Whether certain amounts received as a royalty or as proceeds of disposition yield access to "successored" resource expenditures.

Position: Potentially, however, appropriate treatment depends upon the circumstances.

Reasons: Must be determined from the application of the provisions of the Act to the facts and circumstances of a particular situation.

3 February 2000 External T.I. 1999-0013955 - CONSTRUCT. & EXPENSES-WORKSPACE

Unedited CRA Tags
8(1)(iii) 6(1)(a) 15(1)

Principal Issues: (1) Mr. A is an employee and the sole shareholder of Opco, an Ontario corporation. Mr. A owns his own home and incurs mortgage interest expenses, property taxes, insurance as well as maintenance costs (e.g., electricity, heat). A relevant portion of the maintenance costs are deductible by virtue of subparagraph 8(1)(i)(iii) of the Income Tax Act (the "Act"). However, as an alternative, Mr. A may be reimbursed by Opco in respect of the maintenance costs as well as the mortgage interest expenses, property taxes, and insurance. Does the reimbursement of mortgage interest expenses, property taxes, and insurance give rise to a taxable benefit under paragraph 6(1)(a) of the Act? (2) A second concern is that if Opco reimburses Mr. A in respect of capital outlays (costs incurred by Mr. A to build an office in his basement), would this reimbursement give rise to a taxable benefit under paragraph 6(1)(a) of the Act or subsection 15(1) of the Act?

Position: 1. A taxable benefit would arise. It is a question of fact whether the benefit would arise under subsection 15(1) of the Act or paragraph 6(1)(a) of the Act. Generally, paragraph 6(1)(a) of the Act would be applicable if the portion of the reimbursement in respect of the amount of the benefit where the benefits are not of an exceptional nature and if the sum of the benefits and the employee's salary do not constitute an unreasonable payment for his or her services. 2. General comments were provided

Reasons: 1. This is a reimbursement of non-deductible expenses. The position is also considered to be consistent with paragraph 23 of IT-470R which indicates that a reimbursement in respect of tools gives rise to a taxable benefit. 2. The determination of this issue in an actual situation can only be determined on a case-by-case basis.

3 February 2000 External T.I. 1999-0012155 - Limited Recourse Amount

Unedited CRA Tags
143.2 248(1)

Principal Issues:
Whether the test in paragraph 143.2(7)(a) would be determined without regard to exchange rate fluctuations where the Canadian dollar appreciated and the Canadian-dollar amount of a foreign loan repayment would be less than the original loan.

Position:
Fluctuations in the Canadian dollar would not be relevant for the purposes of the test where bona fide arrangements were made at the time the indebtedness arose for repayment of the loan and interest thereon within a reasonable time not exceeding 10 years. However, where the requirements of paragraphs 143.2(7)(a) and (b) were not met, certain ramifications would result. This would result in the loan being a limited recourse amount which would be subject to exchange rate fluctuations.

Reasons:
The specific wording of the definitions of "limited recourse amount" and "principal amount" in subsection 143.2(1) and subsection 248(1), respectively; the requirements of subsection 143.2(10) and the requirement that, for accounting and tax purposes, foreign exchange transactions be converted to Canadian currency.

2 February 2000 External T.I. 2000-0003385 - NON-QUALIFYING AMALGAMATIONS

Unedited CRA Tags
87

Principal Issues: Whether the tax accounts of predecessor corporations flow through to the merged corporation in a non-qualifying amalgamation?

Position: No.

Reasons: To conclude otherwise would render the rules in subsection 87(2) meaningless.

1 February 2000 External T.I. 1999-0008645 - CALCULATION OF CAPITAL DIVIDEND ACCOUNT

Unedited CRA Tags
89(1) ITAR 21(1)

Principal Issues: Computation of capital dividend account for dispositions of eligible capital property subject to ITAR 21(1). Does excess of actual POD over deemed POD get added to capital dividend account?

Position: No.

Reasons: The law.

1 February 2000 External T.I. 1999-0011055 - SINGLE PURPOSE CORPORATION

Unedited CRA Tags
15(1)

Principal Issues: Transfer of shares of a single purpose corporation.

Position: Transfer to surviving spouse (Cdn. resident) as a consequence of the shareholder's death is generally acceptable as long as 7 conditions continue to be met but inter vivos transfers are not permitted.

Reasons: Administrative practice only - will not be expanded to cover situations that it was not intended to cover.

1 February 2000 External T.I. 1999-0006945 - NON-QUALIFYING SECURITY AND DIVIDEND

Unedited CRA Tags
118.11(8) 129(1.2)

Principal Issues:
1. Whether a gift of a capital interest in a charitable remainder trust would be a "non-qualifying security" as defined in subsection 118.1(18).

2. Whether subsection 129(1.2) would apply to prohibit a corporation from obtaining a dividend refund.

Position:
1. No, but if, having regard to the circumstances, it is determined that the main reason for using a charitable remainder trust is to circumvent the rules in subsection 118.1(13) or (16), consideration will be given to the possible application of GAAR (e.g., where the assets transferred to the trust are themselves non-qualifying securities).

2. Factual determination as to whether one of the main purposes of the transaction or series of transaction was to enable the corporation to obtain a dividend refund.

Reasons:
1. Subsection 118.1(18).

2. The purpose test in subsection 129(1.2).

1 February 2000 External T.I. 1999-0008625 - APPLICATION OF SECTION 84.1

Unedited CRA Tags
84.1

Principal Issues: Are former spouses dealing with each at arm's length for the purpose of section 84.1 where a share purchase agreement has been entered into as part of the divorce settlement before the divorce is final.

Position: Question of fact - must also consider the application of subsection 84.1(2.01).

Reasons: See above.

1 February 2000 External T.I. 1999-0013565 - CDA AND LIFE INSURANCE

Unedited CRA Tags
89(1) 148(9)

Principal Issues: Addition of excess of the proceeds paid on death of the insured over ACB of the life insurance policy to a corporation's CDA when the actual payment is made to a third party as directed by the corporation that is the beneficiary under the policy. Does the doctrine of constructive receipt apply?

Position: Question of fact but we generally accept that where the corporation has not otherwise disposed of its interest in the policy and it remains the beneficiary under the policy that the doctrine of constructive receipt can apply such that an addition to the corporation's CDA for the excess of the insurance proceeds over the ACB of the policy is possible.

Reasons: The law.

1 February 2000 External T.I. 1999-0010985 - MEANING OF CONTROL - PARAGRAPH 186(4)(A)

Unedited CRA Tags
186(2) 186(4)

Principal Issues: Where no class of shares have full voting rights under all circumstances will the corporation (along with non arm's length persons) that has legal control of the payer corporation be connected for the purpose of paragraph 186(4) of the Act?

Position: No.

Reasons: The wording of subsection 186(2) requires consideration of shares with full voting rights under all circumstances only.

31 January 2000 External T.I. 1999-0002695 F - SER. D'AIDE CONC. LA SANTE

Unedited CRA Tags
6(1)(a)(iv)(A)

Principales Questions : déterminer si divers services de santé payés par l'employeur et comprenant du support psychologique pour le mieux-être des employés sont des avantages imposables.

Position Adoptée : aucune détermination possible; résumé de la politique de l'Agence.

31 January 2000 External T.I. 1999-0009435 - REMUNERATION OF CANADIAN FOR WORK IN U.S.

Unedited CRA Tags
art XV

Principal Issues: Taxability of remuneration earned by Can employee in U.S.

Position: If employee's presence less than 183 days and not borne by U.S. employer or U.S. permanent establishment, not taxable in the U.S. From facts given both these conditions are met.

Reasons: Law - paragraph 2(b) of Article XV of Canada-U.S. Convention

31 January 2000 External T.I. 1999-0010955 - MEANING OF FULL VOTING RIGHTS

Unedited CRA Tags
186(2) 186(4)

Principal Issues: Whether a class of shares will be considered as having full voting rights under all circumstances where the ability to elect members to the board of directors is split between two classes of shares.

Position: No.

Reasons: The circumstance, in this case being the ability to participate fully in the election of the board of directors is being limited.

31 January 2000 External T.I. 1999-0010965 - EARNOUT CLAUSES AND INELIGIBLE PROPERTY

Unedited CRA Tags
88(1)(c.3)

Principal Issues: Whether a earn-out clause will cause the bump under subsections 88(1)(c) and (d) to be disallowed.

Position: Question of fact but if sole purpose is to establish the fair market value of the shares of the subsidiary then generally the earn-out right would not be a property described in subparagraphs 88(1)(c.3)(i) or (ii).

Reasons: The law.

31 January 2000 External T.I. 1999-0007265 - RESP EDUCATIONAL ASSISTANCE PAYMENTS

Unedited CRA Tags
146.1

Principal Issues: Educational assistance payments- Are their any restrictions on 1) what type of expense may be covered by EAPs, or
2) the amount that can be paid?

Position: 1) Since the RESP was entered into in 1988, with no contributions made after February 1990 and the plan has not been modified since that date, the only restriction is that the amount be an "EAP" as previously defined in Act and subject to the condition in paragraph 146.1(2)(g).
2) No limit on dollar amount in Act.

Reasons: 1) The circumstances under which EAPs can be paid are governed by 146.1(2)(g) and the plan terms which must comply with the definition of EAP in the Act. New conditions in 146.1(2)(g.1) are not applicable. CCRA has not developed any guidelines concerning the expenses that may be covered by EAPs.
2) Amount restricted under subsection 146.1(2)(g.1) but, again, only for plans entered into after 1998.

28 January 2000 External T.I. 1999-0013605 - CRITICAL ILLNESS INS.-EMPL. BENEFIT?

Unedited CRA Tags
6(1)(a)

Principal Issues: Whether employer-paid premiums to a critical illness insurance plan is a taxable employee benefit.

Position: Likely yes. However, until we have the opportunity to examine a detailed submission, along with all related agreements for these types of plans, we will not be able to comment definitively on the income tax consequences.

Reasons: Employees are generally taxable on the value of all benefits they receive by virtue of their employment, unless the Income Tax Act specifically provides otherwise.

28 January 2000 External T.I. 1999-0013785 - SMALL BUSINESS SHARS INRRSP

Unedited CRA Tags
REG 4900 146

Principal Issues: Whether shares of private Canadian corporation are qualified investments for RRSP

Position: Question of fact

Reasons: Discussion of portions of 4900(6), (12) and (13) requirements which may or may not be relevant to particular investment.

28 January 2000 External T.I. 1999-0008045 - LEAVE PLAN EMPLOYER PAYMENTS

Unedited CRA Tags
REG 6801(a)

Principal Issues: Can we confirm that a plan does not satisfy 6801(a) of the Regulations?

Position: Yes

Reasons: 6801(a) conditions are not satisfied.

28 January 2000 External T.I. 2000-0004385 - TRANSFER FROM RRSP TO RRIF

Unedited CRA Tags
146(16)(a) 146.3(2)(e)

Principal Issues: Proper reporting of transfers of property from RRSP to RRIF to RRSP

Position: Explained roll-over provision and referred issuer to tax centre.

Reasons: Improper reporting of amounts transferred and correction of notice of assessment must be handled through tax centre of either or both the annuitant and issuer.

28 January 2000 External T.I. 1999-0008635 - DIVIDENDS IN KIND

Unedited CRA Tags
82

Principal Issues: The taxability of shares received as dividends in kind

Position: The fair market value of the shares is treated as dividend income

Reasons: The shares distributed represent property distributed by the corporation to its shareholders on a pro-rata basis.

27 January 2000 External T.I. 1999-0007885 - GENERAL RRIF QUESTIONS AND ANSWERS

Unedited CRA Tags
146.3

Principal Issues: 1) Can an individual make contributions to a RRIF? 2) Can a RRIF carry out transactions with the annuitant's general investment account? 3) Will a transfer between carriers trigger the payment of the minimum amount?

Position: 1) No. 2) Yes. 3) Generally, yes.

Reasons: 1) 146.3(2)(f) restricts what property a carrier can accept as consideration under the RRIF contract. 2) Nothing preventing transactions between RRIF and annuitant if done at fmv. 3) Transferor carrier has to retain the minimum amount if it hasn't been paid out for the year.

27 January 2000 External T.I. 1999-0014965 - TEACHERS-DEDUCTIONS FOR COMPUTERS

Unedited CRA Tags
8(2)

Principal Issues: We have been asked on how a federation of teachers should proceed so that teachers will be able to claim deductions in respect of the cost of personal computers. We have indicated that since an amendment to the income Tax Act is required, a submission should be made to the Department of Finance.

Position: See Principal issues.

Reasons: See principal issues.

27 January 2000 External T.I. 1999-0013695 - PENSION INCOME

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

Principal Issues: Can contributions to a U.S. 401(k) pension plan by a U.S. resident be received tax-free in Canada if the U.S. resident moves to Canada after he or she retires?

Position: No.

Reasons: There is no provision in the Act allowing for the deduction of such amounts. Generally, the full amount of pension receipts is taxable.

27 January 2000 External T.I. 1999-0009375 - DIVIDENDS SUBJECT TO 55(2)

Unedited CRA Tags
55(2) 55(3)(a)

Principal Issues: Whether subsection 55(2) will apply to a series of transactions?

Position: Yes.

Reasons: The purpose test appears to be met. Further, the exemption in paragraph 55(3)(a) is not met.

27 January 2000 External T.I. 1999-0007255 - REGISTERED EDUCATION SAVINGS PLAN

Unedited CRA Tags
146.1(2)(d.1)

Principal Issues: Conditions for distribution of accumulated income payments from an RESP

Position: Cannot confirm the situation in the letter.

Reasons: We are not given enough facts and it is a factual determination whether 146.1(2)(d.1)(i) to (vi) are satisfied in a particular situation.

26 January 2000 External T.I. 2000-0002095 - RESIDENCY STATUS OF CERTAIN TRUSTS

Unedited CRA Tags
2(1)

Principal Issues: Whether the additional facts affect our previous opinion given in file #991269

Position: No, provided that the only activities, if any, of the corporations which have a presence in Canada conducted in Canada are administrative housekeeping activities of the trustee corporation.

Reasons: As stated above.

26 January 2000 External T.I. 1999-0014285 - REGISTERED PLAN FOREIGN CONTENT LIMIT

Unedited CRA Tags
PART XI

Principal Issues:

Limitation on foreign content held by RRSPs on a trust by trust basis.

Position:

Stated that existing law does not allow the combination of plans to determine foreign content limit.
XXXXXXXXXX

Reasons:

25 January 2000 External T.I. 1999-0007915 - DSLP RETURN TO WORK AND TIMING OF LEAVE

Unedited CRA Tags
REG 6801(a)

Principal Issues:
1. Must a person return to employment after a leave of absence is taken under a DSLP?
2. Can a leave of absence be taken part way through a deferral period?

Position:.
1. Yes.
2. No.

Reasons:.
1. The Regulations require a person to return to employment after the leave.
2. The Regulations require the leave of absence to follow immediately after a deferral period.

25 January 2000 External T.I. 1999-0011795 - RESOURCE PROFITS; GAS STORAGE

Unedited CRA Tags
Reg 1204(1) Reg 1206

Principal Issues: Whether the resource allowance is available to a taxpayer who uses 3 underground gas storage reservoirs and produces natural gas from one reservoir.

Position: Yes. However, deductible Crown charges, if any, would reduce resource profits if they are ancillary to or in support of resource activities.

Reasons: Regulation 1204 and 1210

24 January 2000 External T.I. 1999-0011635 - NASDAQ OVER THE COUNTER BULLETIN BOARD

Unedited CRA Tags
REG 3201

Principal Issues:

Does the position stated in file E9704665 still reflect the Department's position that the NASDAQ "Over-the-Counter Bulletin Board" is not a prescribed exchange under subparagraph 3201(o)(viii) of the Income Tax Regulations?

Position:

Yes.

Reasons:

8 December 1999 External T.I. 9924785 F - ASSOCIÉ DÉTERMINÉ

Unedited CRA Tags
96(2.4)

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 5-992478

J. Desparois, M.Fisc.

À l'attention de XXXXXXXXXX

Le 8 décembre 1999

Mesdames, Messieurs,

Objet: Définition d'« associé déterminé »

23 November 1999 External T.I. 9919955 - YEAR 2000 EXPENDITURES - ADDITIONAL CCA

Unedited CRA Tags
Reg 1100(1)(zg) & (zh)

Principal Issues: Can the additional CCA provided for under Regulation 1100(1)(zg) or (zh) be claimed in a year other than the year the relevant property is acquired?

Position: No.

Reasons: The draft Regulations are clear.

23 November 1999 External T.I. 9907815 - SECTION 19.1 - IS THIS ADVERTISING19.1

Principal Issues: Are expenditures to control advertising time slots to be considered as an "advertisement" for the purposes of section 19.1?

Position: No.

Reasons: The expenditures cannot be considered as expenditures on an "advertisement".

19 November 1999 External T.I. 9732345 - LOANS TO NON-RESIDENTS - PART XIII TAX

Unedited CRA Tags
15(2) 214(3)(a) 227(6.1) Article X - US Treaty

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 	973234
		Tim Kuss
Attention: XXXXXXXXXX 

November 19, 1999

Dear Sirs:

Re: Subsections 15(2), 214(3), 227(6.1) and Article X of the
Canada - U.S. Income Tax Convention (the "Convention")

10 November 1999 External T.I. 9824535 - PARAGRAPH110.6(14)(D)

Unedited CRA Tags
110.6(14)(d)

Principal Issues:
A trust and a corporation formed a partnership. Can the beneficiaries of the trust be considered to be members of the partnership (carrying on the business of the partnership), and if they are members, would they be considered to be related to the partnership for the purposes of subparagraph 110.6(14)(d) of the Act.

Position:
The beneficiaries of a trust would not be considered as members of the partnership where the trust owns an interest in the partnership. Hence, subparagraph 110.6(14)(d) would not apply to deem the partnership to be related to such beneficiaries.

Reasons:
The Canada Customs and Revenue Agency has not accepted, as a general proposition, that the beneficiary of a trust is the beneficial owner of the trust property.

3 November 1999 External T.I. 9912855 - DEDUCTIBILITY OF REGISTRATION COSTS

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

Principal Issues:

Costs of Registration under Environmental Management System (EMS). Whether these are a deductible business expense.

Position:

They would be deductible on the basis that they would appear to meet the "purpose" test of 18(1)(a). However, if the outlay is material and can reasonably be considered to provide benefits for the taxpayer in future years, the amount should be amortized over such years on a reasonable basis. What is material is a question of fact and judgement.

Reasons:

14 October 1999 External T.I. 9923775 - FLOW-THROUGH SHARES - SPECIAL WARRANTS

Unedited CRA Tags
6202.1(5) 6202.1(2) 6202.1(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.

992377
XXXXXXXXXX Peter Lee
(613) 957-8977
Attention: XXXXXXXXXX

October 14, 1999

Dear Sirs:

Re: Special Warrants for Flow-Through Shares and Bonus Shares

8 October 1999 External T.I. 9826795 - STOCK OPTIONS AND DIRECTOR'S FEES

Unedited CRA Tags
7(1) 110(1)(d) 248(1)

Principal Issues:
Lecturer's fees, director's fees and stock option benefits received by an individual member of a partnership and remitted to the partnership. Tax treatment to the individual and also to the other members of the partnership who received an allocation of such income.

Position:
Whether income received by a partner is that of the partner or of the partnership in any particular situation will depend on a finding of fact.

Per IT-377R, partnership can act as director. An individual can act on behalf of the partnership. However, the income earned will be that of the partnership. Also, in any other circumstances where the arrangement is entered into between the partnership and the payer for services to be performed, amounts received in respect of such services will be that of the partnership, irrespective of who performed the services.

Amounts received by an individual for his/her personal benefit for services performed by him/her and remitted to the partnership will be income of the individual under sections 5 to 8. This will occur where, for instance, the arrangement was made between the individual and the payer or the payer and the individual have an employer/employee relationship.

Fees received and included in the income of the individual partner and remitted to the partnership would not be included in the partnership's income. Instead, the amounts will be characterized as a contribution of capital to the partnership by the partner under subparagraph 53(1)(e)(iv).

Reasons:

6 October 1999 External T.I. 9922845 - ISSUANCE OF FLOW-THROUGH SHARES TO EMPLOYEES

Unedited CRA Tags
66.3(4) 110(1)(d) 7(1)(a) 66.3(3) 6204

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.

992284
XXXXXXXXXX Peter Lee
(613) 957-8977
Attention: XXXXXXXXXX

October 6, 1999

Dear Sirs:

Re: Issuance of Flow-Through Shares to Employees

16 September 1999 External T.I. 9924575 - YEAR 2000 ADDITIONAL CCA

Unedited CRA Tags
Reg 1100(1)(zg) & (zh)

Principal Issues: Year 2000 computer compliance relief for an ultrasound scan

Position: An ultrasound scan is not equipment that will qualify for this tax relief

Reasons: It is not equipment decried in either paragraph (f) of class 10 or paragraph (o) of class 12

Technical Interpretation - Internal

4 February 2000 Internal T.I. 1999-0006857 - ANNUITY FROM U.S. TRUST

Unedited CRA Tags
12.2 56(1)(d)

Principal Issues:
Whether income from annuity paid out of US Charitable Remainder Trust to Canadian resident is subject to taxation in Canada.

Position:
Yes, it is subject to tax by virtue of subsection 12.2(1), however, depending on the particular facts, the amount to be included under subsection 12.2(1) in the initial years of the annuity may be nil.

Reasons: Wording of subsection 12.2(1) and regulations 304 to 307

27 January 2000 Internal T.I. 2000-0000787 - AUTOMATED TELLER MACHINES INCOME

Unedited CRA Tags
REG 5100(1)

Principal Issues: Would a CCPC's earning of income from fees charged for the use of its Automatic Teller Machines be excluded from qualifying as a qualifying active business within the meaning assigned by subsection 5100(1) of the Regulations because it is considered to be income from property?

Position: Probably not.

Reasons: We would generally conclude that the earning of fees from the use of the Automatic Teller Machines would not be excluded under paragraph (1) of the definition of "qualifying active business".

19 January 2000 Internal T.I. 2000-0000227 - BENEFIT REIMBURSEMENT

Unedited CRA Tags
7(1) PART XIII

Principal Issues: 1) Will an amount that is not deductible under 7(3)(b) of the Act paid by a Canadian employer to reimburse a U.S. parent corporation for the cost the parent incurred to acquire the previously-issued shares that are reissued to the employees of the Canadian employer be subjected to taxes under Part XIII of the Act? 2) Where the Canadian corporation reimburses more than the U.S. parent corporation's cost for such shares, would the excess be subjected to taxes under Part XIII?

Position: 1) No 2) Question of Fact.

Reasons: 1) The payment would not fit any of the types that are subjected to Part XIII of the Act. 2) The facts would have to be looked at to determine whether the excess would constitute a shareholder benefit, a dividend or some other type of payment that may be subjected to taxes under Part XIII.

19 January 2000 Internal T.I. 9932577 - RRSP WITHHOLDING REQUIREMENTS

Unedited CRA Tags
153(1) 214(3)(a) 146(8.8) 160.2

Principal Issues:
Is there any requirement to withhold income tax when an amount is deemed to have been received out of an RRSP by a deceased annuitant of the RRSP?

Position:
There is no withholding of income tax required under Part 1 of the Act but there is under Part XIII of the Act (if it is applicable) by virtue of paragraph 214(3)(a) of the Act.

Reasons:
The law does not require withholding under Part 1 of the Act. [Note amounts paid out that are in excess of the deemed benefit may be treated differently.]

14 January 2000 Internal T.I. 9927897 F - OPERATIONS SUR MARCHE A TERME

Unedited CRA Tags
9(1)

Principales Questions:

1. Est-ce qu'un contribuable peut passer de la méthode du gain à la méthode du revenu lors de la déclaration d'un gain ou d'une perte provenant d'investissements dans des marchés à terme ?
2. Si oui, est-ce que les déclarations d'impôt T1 antérieures du contribuable peuvent être modifiées ?
3. Quel taux de change devrait être utilisé pour convertir en devises canadiennes les pertes déclarées en devises américaines ?
4. Est-ce que des déductions pour frais connexes peuvent être admises ?

Position Adoptée:

14 January 2000 Internal T.I. 9931297 - PAY EQUITY - INTEREST INCOME

Unedited CRA Tags
12(1)(C)

Principal Issues: Whether interest on pay equity payments is taxable.

Position: Yes, it is taxable under paragraph 12(1)(c) of the Act for the year payment is received.

Reasons: See 9421464, 9727105, 942146a, 9426687, 9316439, 9203975, 73911, 9018736, 52830, 701231A.

13 January 2000 Internal T.I. 9931307 - INTEREST INCOME

Unedited CRA Tags
9(1) 12(1)(c) 12(4)

Principal Issues: Whether a portion of the interest from an 18-month GIC can be reported in the year of purchase and the remaining portion in the following year when received.

Position: Yes

Reasons: Accrual basis of accounting under GAAP, and subsection 9(1), paragraph 12(1)(c) and subsection 12(4) of the Act.

23 December 1999 Internal T.I. 9825577 - FOREIGN AFFILIATES EARNINGS - INFLATION

Unedited CRA Tags
reg 5907(1) reg 5907(2) art 22

Principal Issues:
1. Should monetary adjustments for inflation in Brazil be recognized in calculating surplus?

2. Application of paragraph 4 of Article 22 of Brazilian treaty.

3. Whether US dollars should be the calculating currency.

Position:
1. No.

2. Dividends are paid from exempt surplus as calculated under Canadian rules.

3. No.

Reasons:
1. Monetary corrections are notional, are not attributable to actual income or losses from carrying on an active business and, if recognized would result in duplication of surplus.

22 December 1999 Internal T.I. 9921477 F - CREDIT EQUIV. POUR PERS. ENTIRE. A CHARGE

Unedited CRA Tags
118(1)B)

Position Adoptée : Peut-être, mais ce droit ne peut être établi que cas par cas.

30 November 1999 Internal T.I. 9924657 F - BFT

Unedited CRA Tags
125.1

Principales Questions: Des sociétés qui confectionnent des uniformes pour des employés d'entités gouvernementales peuvent-elles prendre de la BFT

Position Adoptée: Analyse de l'expression «destinés à la vente ou à la location» et commentaires sur la notion de sous-traitance

23 November 1999 Internal T.I. 9929917 - CLEARANCE CERTIFICATE

Unedited CRA Tags
159(2)

Principal Issues: whether clearance certificate should be issued to trustee in bankruptcy

Position: no

Reasons: not necessary and could be misleading

2 November 1999 Internal T.I. 9923277 F - PARTICIPATION INDIVISE - TEST POUR 1100(14)

Unedited CRA Tags
1100(14)

Principal Issues: Peut-on considérer le test ratio % d'utilisation par rapport au % de détention pour les fins du paragraphe 1100(14)?

Position: test qualitatif et quantitatif - ratio $ utilisation par rapport % de participation jamais plaidé devant tribunaux

Reasons: Jurisprudence citée

Ministerial Letter

28 January 2000 Ministerial Letter 1999-0005088 - DISABILITY PENSION

Unedited CRA Tags
6(1)(f) 56

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.

January 28, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter of September 20, 1999, concerning the taxation of disability pensions.

26 January 2000 Ministerial Letter 1999-0005178 - MUTUAL FUND SALES COMMISSIONS

Unedited CRA Tags
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.

January 26, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter of August 31, 1999, concerning the taxation of mutual fund sales commissions.

24 January 2000 Ministerial Letter 1999-0004898 - ICE STORM 1998

Unedited CRA Tags
9(1) 12(1)(x) 12(2.1)

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.

January 24, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter of September 9, 1999, concerning the income tax treatment of provincial government assistance received by Ontario Christmas tree growers to replace trees damaged by the 1998 ice storm.

17 January 2000 Ministerial Letter 1999-0007228 - TAX ON RRIF

Unedited CRA Tags
205 206 207

Principal Issues: Can an annuitant of a RRIF object to an assessment of Part XI tax?

Position: No.

Reasons: Law. The taxpayer subject to Part XI is the trustee of the RRIF, not the annuitant (Sec. 207). Therefore only the trustee can file a Notice of Objection to the Part XI tax.

13 January 2000 Ministerial Letter 1999-0004418 - EMPLOY. INCOME EXEMP. FOR INDIANS

Unedited CRA Tags
81(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.

January 13, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

23 December 1999 Ministerial Letter 9931938 - GIFT OF REAL PROPERTY BY NON-RESIDENT

Unedited CRA Tags
118.1(6)

Principal Issues:
A non-resident donates a gift of real property situated in Canada to a registered charity in Canada. Can the non-resident elect under subsection 118.1(6) even if the registered charity is not a prescribed donee for the purposes of paragraph 118.1(6)(b)?

Position: Yes.

Reasons:
Paragraph 118.1(6)(a) applies to gifts of capital property made by all individuals, regardless of whether or not they are resident in Canada, provided that the other requirements of that provision are met. Accordingly, it is not necessary to look to paragraph 118.1(6)(b) to provide a result that is already available under paragraph 118.1(6)(a).