Income Tax Severed Letters - 2000-05-26

Miscellaneous

Ruling

2000 Ruling 2000-0008363 - Mutual Fund Large Investor Incentive

Unedited CRA Tags
104(7.1) 146(2) 146.3(2) 147(2)

Principal Issues: This ruling involves the discontinuance of the large investor rebate program and the replacement of this program by the addition of a new class of units that will enable a negotiated management fee reduction payable directly by the Investor.

1) Does the creation of a new series of units result in a disposition of exisiting units by current unitholders?

2) Do the proposed amendments cause a resettlement of the existing trusts?

3)Will 104(7.1) apply to the transactions?

4)Will the new program confer a benefit to Investors?

Position: Unitholders are not considered to have disposed of their units ; there is no resettlement of the existing trusts due to the proposed amendments; 104(7.1) does not apply; There is no benefit or advantage to unitholders as a result of the proposed transactions.

Reasons: The changes to the declaration of trust are not so significant to cause a resettlement of the existing trusts.

2000 Ruling 1999-0012943 - NON-PROFIT ORGANIZATION

Unedited CRA Tags
149(1)(l) class 14

Principal Issues: Will the activities described in the ruling cause the taxpayer to cease to be a non-profit organization under paragraph 149(1)(l).

Position: No.

Reasons: Intent is not to make a profit or to carry on a trade or business; investment income will be paid to customers and there will not be any accumulated unreasonable excess funds

2000 Ruling 2000-0009123 - CHANGE IN TERMS OF DEBT OBLIGATION

Unedited CRA Tags
54

Principal Issues:
1. No disposition upon amendments to terms of debt obligation
2.18(9.1) applies to restructuring fee

Position:
1. OK
2. OK

Reasons:
1. Original notes still exist together with all provisions not covered by amending agreement
2. Statement of fact that the payment is because of accelerated repayment schedule

2000 Ruling 1999-0014553 - Production Services Tax Credit

Unedited CRA Tags
125.5 143.2 96(2.2)(d) 18.1(15)

Principal Issues:

This ruling involves a proposed public production services film deal similar to one issued for the same group (file #983239). The issues were mainly the same as before except for the following:

1. Will Creditco be an eligible production corporation for the purposes of section 125.5 of the Act?
2. Will the mandatory acquisition of Class B Units of the production limited partnership be subject to the application of paragraph 96(2.2)(d) of the Act?

Position:

1. Yes, if it meets all the provisos listed in the ruling.
2. Possibly, depending on the facts.

Reasons:

2000 Ruling 2000-0012493 - RETIRING ALLOWANCE RELATED EMPLOYERS

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

Principal Issues: Will a former employer be related to the current employer under subparagraph 60(j.1)(iv) of the Act?

Position: Yes.

Reasons: The former employer's business was continued by the current employer.

2000 Ruling 1999-0014993 F - fiducie conjoint-renonciation participation

Unedited CRA Tags
106(2) 56(2)

Principales Questions: Deux particuliers prêtent une somme $ à une fiducie exclusive au conjoint. Le conjoint bénéficiaire renonce à sa participation dans la fiducie. La fiducie verse la majorité de cette somme au conjoint bénéficiaire en contrepartie de sa participation au revenu dans la fiducie. Suite à cette renonciation, aucune autre personne ne recevra du revenu ni du capital de la fiducie avant le décès de cette dernière. Les dispositions du para. 56(2), du para. 56(4), du para 56(4.1) et du para 106(3) peuvent-elles?

Position Adoptée: 1- Para. 56(2) non; 2- Para 56(4) non; 3- Para. 56(4.1) non; 4- Para 106(3) oui pour la contrepartie qui est attribuable à la disposition de la participation au revenu dans la fiducie.

2000 Ruling 2000-0014553 - STRUCTURE SETTLEMENT

Unedited CRA Tags
12.2(1)

Principal Issues:
An individual (the Claimant ) sustained personal injuries XXXXXXXXXX. The individual commenced an action XXXXXXXXXX. Pursuant to court settlement, the defendants' insurers will agree to make periodic payments to the Claimant and if the Claimant dies within the guarantee period, to the Claimant's estate.

The issue is the income tax treatment of the periodic payments.

2000 Ruling 1999-0015023 - XXXXXXXXXX - trust residency status

Unedited CRA Tags
art VII

Principal Issues:

(i) Whether certain offshore trusts are resident in Canada where the trustee is a Canadian resident corporation which carries on its trustee functions through an offshore branch or branches and which delegates all the administrative functions except housekeeping activities to its foreign parent company;

(ii) Whether the administrative fees paid by the trustee to its foreign parent company who acts as the trust administrator are subject to tax in Canada.

Position:

(i) No ruling but only an opinion was given in this regard. Our opinion is that, provided the offshore trusts are established and operated in the manner described in the ruling letter and provided the resident status of the beneficiaries and the situs of the trust assets and their management are such as described in paragraph 8 of the ruling letter, the offshore trusts are considered not to be resident in Canada;

(ii) Not subject to tax in Canada

Reasons:

2000 Ruling 2000-0016313 - Derivatives used by mutual fund trust

Unedited CRA Tags
206(1)

Principal Issues:

1. What is the cost amount of the forward contract ?
2. Is Forward Contract C a foreign property ?

Position:

1. For the purposes of subsection 248(1) of the Act and section 5000 of the Regulations, the cost amount to a Fund of its investments in Forward Contracts which are substantially the same as the draft contract submitted will be equal to the brokerage fees, legal fees and other costs incurred by the Fund and incidental to entering into or acquiring the investment and will not include an amount in respect of the Forward Price or Final Price or the Settlement Amount the amount of any initial or variation margin deposit in respect of the Forward Contract.
2. A Forward Contract C described in the present letter entered into between the Fund and Counterparty C, and which is substantially similar to the draft Forward Contract C submitted will not be considered to be foreign property as defined in subsection 206(1) of the Act

Reasons:

2000 Ruling 2000-0018843 - AMENDMENT TO DEBT XXXXXXXXXX

Unedited CRA Tags
54 212(1)(b)(vii)

Principal Issues: Minor amendments to ruling to correct typos.

Position: OK

Reasons: Typos only.

2000 Ruling 1999-0010783 - Spin-off butterfly; treaty exemption

Unedited CRA Tags
55(3)(b) 87(4)

Principal Issues:

(1) Whether a company organized under the XXXXXXXXXX as a "partnership limited by shares" is considered to be a corporation for purposes of section 55 ?

(2) Whether any gains on the disposition of shares of a Canadian company by a non-resident vendor will be exempt from taxation in Canada by virtue of the XXXXXXXXXX?

Position:

(1) Yes.

(2) Provided that the two conditions set out below are satisfied, the answer is yes.

Reasons:

(1) XXXXXXXXXX, a "partnership limited by shares" is a separate legal entity created under the XXXXXXXXXX Act and possesses its own capacity to acquire rights and to assume liabilities.

(2) Provided that, firstly, the vendor does not become a resident of Canada and is and will continue to be a resident of XXXXXXXXXX, and secondly, the value of the said shares does not derive principally (i.e. more than 50%) from the Canadian company's immovable property situated in Canada which does not include real property in which the business of the Canadian company is carried on.

1999 Ruling 9927483 F - DON RESIDENCE PRINCIPALE

Unedited CRA Tags
118.14(3)

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.

PRINCIPALE QUESTION

Le paragraphe 245(2) s'applique-t-il au transfert de la résidence principale par le conjoint au contribuable immédiatement avant le don pour permettre au contribuable d'avoir le crédit pour dons?

Position Adoptée

Non.

1999 Ruling 9827733 - EXEMPT ENTITIES EARN ROYALTIES THROUGH NRO

Unedited CRA Tags
133 245 Article XXI 66(15)

Principal Issues:
1. Qualification as an NRO
2. Application of paragraph 3 of Article XXI of the Canada-U.S. Convention.
3.Qualification of royalty as Canadian resource property.

Position:
1. Qualifies as NRO.
2. Paragraph 3 does not apply.
Qualifies subject to 10% test.

Reasons:
1. Law.
2. In these circumstances, business not being carried on in Canada, and income not from related parties.
3. Royalty was revised to meet Technical News #10.

1998 Ruling 9833463 - SDA VESTING OF BONUS AMOUNTS

Unedited CRA Tags
248(1)SDA

Principal Issues:

Will amendments to the proposed plan that is subject to ruling 982536 (an "in the money" stock appreciation rights plan) effect the rulings provided?

Position:

No

Reasons:

1998 Ruling 9808523 - DIVISIVE REORGANIZATION

Unedited CRA Tags
55 74.4

Principal Issues: application of paragraph 55(3)(a)

Position: 55(3)(a) applies

Reasons: there will be no disposition or increase in interest described in paragraph 55(3)(a)

Technical Interpretation - External

6 June 2000 External T.I. 2000-0012045 - INTEREST EXPENSE ATTRIBUTION RULES

Unedited CRA Tags
20(1)(c) 74.1

Principal Issues: Transferee spouse borrows funds to acquire shares from transferor spouse. No 74.5(1) election. Is interest deductible?

Position: Cannot determine without full knowledge of facts.

Reasons: 20(1)(c) test (borrowing to earn income) in hands of transferee spouse is a purpose test. Also 74.5(11) or 245(2).

5 June 2000 External T.I. 1999-0011505 - Film Tax Credits

Unedited CRA Tags
125.4 125.5

Principal Issues: availability of film tax credits

Position: limited to certain corporations

Reasons: 125.4 and 125.5

2 June 2000 External T.I. 1999-0011325 - Specified Partnership Income

Unedited CRA Tags
125(7) 96(1)

Principal Issues: partnership has nil taxable income., One partner is allocated
partnership income being salary and share of partnership loss resulting from salary expense tp partnership. Remaining partners get their share of loss. Can partner receiving positive allocation claim SBD on its partnership income?

Position: No.

Reasons: It is our position that the management fee formula is a method of allocating partnership income and is not an expense of the partnership. Where there is insufficient income to be allocated under the formula and the formula continues to be applicable the allocations pertain to capital and not to income.

1 June 2000 External T.I. 2000-0018235 - LLP,FEES RELATED TO WITHDRAWALS

Unedited CRA Tags
146.02(1)

Principal Issues: Is the amount of the withdrawal under the Lifelong learning Plan before or after any costs incurred by the RRSP in cashing-in investments in order to make the payment under LLP?

Position: After.

Reasons: The eligible amount received by the annuitant is restricted to a maximum and the fees paid by the RRSP in respect of its investments would not be considered received by the annuitant.

1 June 2000 External T.I. 2000-0016645 - DESIGNATED SHAREHOLDER-10% TEST

Unedited CRA Tags
4901(2)

Principal Issues: When determining whether a shareholder is a designated shareholder: 1) Can you consider the dollar value of the shares in relation to total dollar value of all shares in the class in determining whether the 10% rule applies? 2) Will the Agency allow you to combine different classes of shares in determining whether the 10% rule applies?

Position: 1) No. 2) No.

Reasons: 1) The provision clearly applies to the number of shares and not the relative value of shares. 2) The provision applies to each class of shares so they have to be looked at separately.

1 June 2000 External T.I. 2000-0017055 - SUBSTANTIAL CDN PRESENCE EXEMPTION

Unedited CRA Tags
206(1.1)

Principal Issues: When computing the total amount incurred by the corporation for the services of employees and other individuals for the purposes of clause 206(1.1)(d)(iii)(C) of the Act, can the employer include the employer CPP contributions and EI premiums paid in respect of the employee services?

Position: Yes.

Reasons: Employer costs incurred for its employees would include the payroll related expenses like CPP and EI.

1 June 2000 External T.I. 1999-0009585 - Interaction of sections 18 and 218

Unedited CRA Tags
18(4) 18(5) 218(1)

Principal Issues: Whether the application of section 218 would override subsections 18(4) and 18(5) of the Income Tax Act

Position: No

Reasons: Mainly because of the notwithstanding clause in subsections 18(4) and
18(5)

30 May 2000 External T.I. 1999-0009785 - Section 122.3 vacation

Unedited CRA Tags
122.3

Principal Issues:

1) Whether vacation time is included in the qualifying period for purposes of section 122.3.

2) Whether vacation pay can be considered as attributable to activities performed during the qualifying period.

Position:

1) Normal vacation taken after the commencement and prior to the completion of the foreign assignment would generally be included in the qualifying period.

2) Vacation pay that is reasonably attributable to vacation leave earned during the qualifying period would generally qualify.

Reasons:

30 May 2000 External T.I. 1999-0008915 - Renewal Term for Licence

Unedited CRA Tags
20(1)(a)

Principal Issues: where a licence has a term plus a renewal period must the amortization period include the renewal period where there are risks and uncertainties as to renewal?

Position: Question of fact.(reasonableness test)

Reasons: See comments in IT-477

29 May 2000 External T.I. 2000-0017075 - RA CITY PROVINCE RELATED EMPLOYEES

Unedited CRA Tags
60(j.1)

Principal Issues: For purposes of 60(j.1) of the Act, can a taxpayer who is going to receive a retiring allowance from a province also include his years of service with a municipality located in that province in determining the amount that can be rolled over?

Position: No, unless the municipality qualifies as a related employer under 60(j.1)(iv) or (v).

Reasons: The incorporated municipality is not related to (controlled by) the province as contemplated by paragraph 251(2)(b) of the Act.

29 May 2000 External T.I. 2000-0017125 - SPOUSAL RRSP SPLIT INCOME

Unedited CRA Tags
146(8.3)

Principal Issues: Can income paid out of a spousal RRSP be split between spouses for reporting purposes?

Position: No.

Reasons: The income is taxed in the annuitant's hands unless subsection 146(8.3) requires it to be included in contributor's income.

25 May 2000 External T.I. 2000-0017415 - PERSONAL EXP. AND PROFITS

Unedited CRA Tags
18(1)(h) 7

Principal Issues: A request for information on a specific taxpayer.

Position: General comments on reasonable expectation of profits.

Reasons: Our files are confidential. Taxpayer is seeking support for refusing to complete income tax returns of clients which have questionable business expense claims.

25 May 2000 External T.I. 2000-0018595 - INTEREST EXPENSE TERMINATED BUSINESS

Unedited CRA Tags
20.1(2)

Principal Issues: General comments re: Interest Deductibility on Funds borrowed to settle debts related to a terminated business. Payment is made subsequent to the termination of the business.

Position: General Comments

Reasons: Subsection 20.1(2) will deem the amount to continue to be used for the purpose of earning income from the business.

25 May 2000 External T.I. 1999-0009795 - SECURITY IN SATISFACTION OF INCOME DEBT

Unedited CRA Tags
76(1)

Principal Issues: Whether subsection 76(1) is applicable to consider that payment of a demand note has been made when one non-resident sells that note to a second non-resident and receives a second demand note as consideration.

Position: No

Reasons: Comments in paragraphs 4 and 8 of IT-77R

25 May 2000 External T.I. 2000-0013055 - CONTRACT PAY.&REPORTING SYSTEM-WASTE DIS.

Unedited CRA Tags
238(1)

Principal Issues: Whether the operator of a landfill site must file under the new contract reporting system pursuant to section 238 of the Income Tax Regulations.

Position: No.

Reasons: Although the landfill operator is involved in excavation, this activity cannot be described as the excavation "of all or any part of a building, structure, surface or sub-surface construction, or any similar property."

24 May 2000 External T.I. 1999-0011485 - Limited Partnership

Unedited CRA Tags
96(2.4)

Principal Issues: Expectation of profit and whether an activity or undertaking constitutes the carrying on of a business.

Position: general comments - Question of fact. Consider time spent, type of revenue, expenses and business plan.

Reasons:

24 May 2000 External T.I. 1999-0007315 - SDA, EBP, CONSTRUCTIVE RECEIPT

Unedited CRA Tags
248(1)

Principal Issues: In the context of deferred salary and wages, what is the interaction, if any, of constructive receipt and the "salary deferral arrangement" provisions?

Position: Where an SDA exists (i.e. there is a right to receive an amount and the purpose test is met), the deferred amount in respect thereof is taxed currently, and not upon receipt. The right to receive an amount under an SDA is interpreted very broadly. Where no SDA exists, an amount is generally only taxed on receipt unless the doctrine of constructive receipt applies.

Reasons: Our interpretation of the wording of the Act and our understanding of tax policy.

23 May 2000 External T.I. 2000-0011745 - FACTUAL SITUATION DO ABIL RULES APPLY

Unedited CRA Tags
39(1)(c) 38(c) 40(2)(g)(ii)

Principal Issues:

19 May 2000 External T.I. 2000-0008455 - EXEMP. FROM ATTRIB. IN FORM OF LOAN PAID

Unedited CRA Tags
74.5(1)

Principal Issues: Whether the interest payable in respect of the particular year under consideration and each preceding year must be paid no later than 30 days after each such year in order to qualify for the exemption from the attribution rules in subsection 74.5(1).

Position: Yes.

Reasons: In our view, it is clear from the words in subparagraphs 74.5(1)(b)(ii) and (iii) (as well as the Technical Notes)

19 May 2000 External T.I. 2000-0015835 - SPLITTING LONG-TERM DISAB. PLAN INTO 2

Unedited CRA Tags
6(1)(f)

Principal Issues: Whether an employer may split a long-term disability plan into two plans - one for unionized staff and one for non-unionized staff. The non-unionized staff would pay XXXXXXXXXX % of the premium while the employer would pay XXXXXXXXXX % of the premium in the plan for unionized staff.

Position: If the Taxpayer can establish that the new plan is separate from the existing plan and that it is an employee-pay-all plan, any benefits received under this new plan will be received by employees tax-free while the benefits paid under the old plan would continue to be subject to tax in the employees' hands to the extent provided paragraph 6(1)(f) of the Act. However, where an employee is receiving benefits under the taxable plan at a time when the new employee-pay-all plan is instituted, the benefits he or she continues to receive, to the extent that they were provided for in the old plan, will remain of an income nature because they continue to flow from the old taxable plan.

Reasons: In order to determine the income tax consequences where an employer has two wage loss replacement plans, it is essential to determine whether there are, in fact, two plans. In this regard, it is our general view that two wage loss replacement plans would be regarded as being in existence provided that there is no cross subsidization between the two plans, and the level of benefits, premiums rates, qualifications for membership and other terms and conditions of each of the plans are not dependent upon the existence of the other plan. Additionally, the administration of the plans must indicate that each plan can be regarded as being separate from the other.

17 May 2000 External T.I. 1999-0009675 - Determination of corporate status

Unedited CRA Tags
95

Principal Issues: Determination of corporate status.

Position: Not enough information.

Reasons:

17 May 2000 External T.I. 1999-0011345 - Costs of Construction

Unedited CRA Tags
18(3.1) 18(3.2)

Principal Issues: Where borrowed funds are used by Corp 1 to acquire shares in a subsidiary (Corp 2) and such funds are subsequently loaned by Corp 2, at an interest rate in excess of the rate on original borrowing, to another corporation(Corp 3) to build a building, can it be said that the original borrowing is subject to subsections 18(3.1) and (3.2)?

Position: Yes.

Reasons: If Corp 2 is only single purpose corp it would be our position that funds have been used to indirectly assist the construction of the building and as such 18(3.2) and (3.1) would apply.

15 May 2000 External T.I. 2000-0018765 - Trust - CDA of Corporte Beneficiary

Unedited CRA Tags
104(21) 89(1)

Principal Issues: Whether the non-taxable portion of a trust's capital gains can be added to a corporate beneficiary's CDA where the trust allocates a portion of its net taxable capital gains to the beneficiary pursuant to subsection 104(21).

Position: No.

Reasons: As per E9524995 and questions 7 and 20 at the 1999 APFF conference. The beneficiary is deemed for purposes of sections 3 and 111 (except as they apply for purposes of section 110.6) to have a taxable capital gain, but the beneficiary is not deemed to have a capital gain and it cannot otherwise be determined that the beneficiary has a capital gain.

15 May 2000 External T.I. 1999-0011425 - Capital Gains Reserve

Unedited CRA Tags
40(1)(a)(iii) 104(4)(a)

Principal Issues: whether 104(4)(a) deemed disposition and reacquisition of debt by trust prevent trust from continuing to claim capital gains reserve on property disposed of before the application of 104(4)(a)

Position: no

Reasons: debt is not deemed extinguished

12 May 2000 External T.I. 1999-0004715 F - PRET A UN EMPLOYE

Unedited CRA Tags
5(1) 6(1)a) 80.4(1) 6(15)

Principales Questions : déterminer si un prêt à un employé pourrait être inclus dans le revenu de celui-ci à titre d'avantage imposable.

Position Adoptée : question de fait.

12 May 2000 External T.I. 1999-0008685 F - QUOTA DE LAIT

Unedited CRA Tags
110.6(2) 85(1) 110.6(1)

Principales Questions:
Est-il possible, lors du transfert de quotas de lait en vertu d'un roulement prévu à l'article 85, de faire la distinction entre les quotas de lait dont le gain est admissible à la déduction pour gains en capital et les quotas de lait dont le gain n'est pas admissible à la déduction pour gains en capital ? En d'autres mots, est-il possible de choisir une somme convenue différente pour les deux catégories (admissible et non admissible) de quotas de lait ?

Position Adoptée:
Oui.

11 May 2000 External T.I. 2000-0015815 - NORTHERN RESIDENTS DEDUCTION

Unedited CRA Tags
110.7(1)(a)

Principal Issues: Can an employer designate or reclassify an existing portion of an employee's wages as a Northern Travel Benefit.

Position: Generally, No

Reasons: Generally, there must be a link between the travel incurred and the amount paid by the employer.

11 May 2000 External T.I. 2000-0018665 - Resource Property Deceased Taxpayer Estate

Unedited CRA Tags
70(5.2) 70(5) 69(1)(c) 107(2)

Principal Issues: What would be the deemed cost, if any, to a deceased taxpayer's estate of a Canadian resource property acquired from the deceased taxpayer?

Position: The cost would be nil.

Reasons: In a situation wherein a deceased taxpayer's estate which is a "personal trust" would acquire a "Canadian resource property" within the meaning of the expressions in subsection 248(1) of the Act and there would be no subsequent transfer nor distribution of the property to the taxpayer's spouse or a spousal trust, by virtue of paragraph 70(5.2)(a) of the Act, the taxpayer would be deemed to have, immediately before his/her death, disposed of the Canadian resource property and received proceeds of disposition therefor equal to its fair market value immediately before death. However, unlike the provisions such as subparagraphs 70(5.2)(b)(ii) and (d)(ii) and paragraph 70(5)(b) of the Act, in respect of resource property, land inventory and capital property, respectively, which deem a cost of certain amount to a deceased taxpayer's estate or to his/her spouse or spousal trust, as the case may be, for the property acquired from the deceased taxpayer, in the case at hand there would be no deemed cost to the estate under section 70 of the Act for the acquisition of the Canadian resource property by the estate from the deceased taxpayer. Furthermore, we also note that no one would have a cost in respect of the acquisition of the Canadian resource property under subsection 107(2), paragraph 69(1)(c) or any other provisions of the Act.

10 May 2000 External T.I. 2000-0017355 - INTEREST EXPENSE

Unedited CRA Tags
20(1)(c)

Principal Issues: General comments re: Interest Deductibility

Position: General Comments

Reasons: Paragraph 20(1)(c) - Use of funds governs deductibility.

10 May 2000 External T.I. 1999-0009665 - Refundable Portion of Part I Tax

Unedited CRA Tags
111(1)(a) 129(3)(a)(ii)

Principal Issues: Impact of a carryback of non-capital losses on the calculation of the Refundable Portion of Part I Tax in the carryback year.

Position: In the circumstances described, a reduction in taxable income in a prior year caused by a carryback of non-capital losses will reduce the Refundable Portion of Part I Tax component of RDTOH to nil by virtue of subparagraph 129(3)(a)(ii).

Reasons: The carryback of non-capital losses reduces taxable income in the prior year. Net income in the prior year is not affected. Since active business income is calculated by subtracting certain amounts from net income, active business income is not reduced when non-capital losses are carried back to the prior year. Therefore, in the circumstances of this case, the reduction of taxable income in the prior year results in a tax refund for the 1995 taxation year, and also eliminates the Refundable Portion of Part I Tax component of the taxpayer's RDTOH for the 1995 taxation year by virtue of subparagraph 129(3)(a)(ii). Eliminating the Refundable Portion of Part I Tax in 1995 results in an amount payable for the 1997 taxation year.

8 May 2000 External T.I. 2000-0018735 - LLP QUALIFYING EDUCATIONAL PROGRAM

Unedited CRA Tags
146.02(1)

Principal Issues: Would a course with 6 hours of classes a week taken by a part-time student at a Canadian university be a "qualifying educational program" for the Lifelong Learning Plan ("LLP")?

Position: Question of fact whether additional work brings it up to 10 hour minimum for "qualifying educational program" purpose but in any event "part-time student" status disqualifies the student from the LLP.

Reasons: In order to be an "eligible amount", the student has to be enrolled as a full-time student in a qualifying educational program. Unless a student has a mental or physical impairment, a part-time student will not be eligible to participate in the LLP.

8 May 2000 External T.I. 2000-0015235 - NEPHEW REFUND OF PREMIUMS

Unedited CRA Tags
146(1)

Principal Issues: A taxpayer has a mentally handicapped adult nephew that currently lives with the taxpayer's mother but he may eventually live with the taxpayer. If the taxpayer's RRSP is left to her nephew on her death, will the amount paid out of the RRSP qualify as a refund of premiums?

Position: Only if the nephew is financially dependent on the taxpayer at the time of her death and is her "child".

Reasons: The nephew would have to qualify as the taxpayer's child under the extended meaning of child in subsection 252(1) of the Act.

4 May 2000 External T.I. 1999-0007725 - EXCLUDED DIVIDENDS

Unedited CRA Tags
191(4) PART VI.I

Principal Issues: Whether an "agreement in respect of the shares..."

Position: Question of fact.

Reasons: Must examine the terms and conditions of the shares or the particular agreement.

Ministerial Letter

24 May 2000 Ministerial Letter 2000-0012998 - meaning of allowance

Unedited CRA Tags
6(6)

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.

May 24, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

24 May 2000 Ministerial Letter 2000-0013008 F - petits outils

Unedited CRA Tags
18(1)b)

Principales Questions:

Est-ce que le coût d'outils achetés par des mécaniciens sont déductibles si le contribuable est :
a) travailleur autonome
b) salarié

Position Adoptée:

16 May 2000 Ministerial Letter 2000-0019468 F - FRAIS MEDICAUX - GARAGE

Unedited CRA Tags
118.2(2)l.2)

Principales Questions :

Les frais encourus lors de la construction d'un garage adjacent à la résidence principale d'un particulier se qualifient-ils à titre de frais médicaux au sens de l'alinéa 118.2(2)l.2) de la LIR.

Position Adoptée :

11 May 2000 Ministerial Letter 2000-0018018 - RESTRICTED FARM LOSSES-HORSE RACING

Unedited CRA Tags
31

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.

MAY 11, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter of March 1, 2000, on behalf of the XXXXXXXXXX , concerning their proposal to amend the Income Tax Act with respect to the taxation of horse racing.

11 May 2000 Ministerial Letter 2000-0018428 - REASONABLE EXP. OF PROFIT-HORSE RACING

Unedited CRA Tags
31 248(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.

May 11, 2000

XXXXXXXXXX

Dear XXXXXXXXXX :