Income Tax Severed Letters - 2007-12-07

Technical Interpretation - External

14 November 2007 External T.I. 2007-0255831E5 - Medical expenses,travel & lodging,heart transplant

Unedited CRA Tags
118.2(2)(g) 118.2(2)(h) 118.2(2)(l.1)

Principal Issues: Patient & spouse travelled 400 km for heart transplant; rented basic studio condo near hospital for 3 mths. Asked whether vehicle, food & lodging expenses qualify as a medical expenses and whether flat per km and per meal rates can be used without receipts.

Position: Yes and yes.

Reasons: Post-operative treatment at that hospital was required every few days/every week; frequent travel was unadvisable given health risks.

2007-025583
XXXXXXXXXX Amanda Riddell, LL.B
(613) 957-2128
November 14, 2007

9 November 2007 External T.I. 2007-0251071E5 - Medical Expenses - Power Flush Toilets

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

Principal Issues: Whether power flush toilets qualify as medical expenses for an ileostomate suffering from severe Crohn's Disease and incontinence.

Position: Yes

Reasons: Para. 118.2(2)(l.2) - medical expenses include reasonable expenses relating to renovations or alterations to a dwelling of an individual who lacks normal physical development to enable that individual to be functional within the dwelling. Expenses not expected to increase value of home and would not normally be incurred by persons who have normal physical development.

2007-025107
XXXXXXXXXX Amanda Riddell, LL.B
(613) 957-2128
November 9, 2007

Technical Interpretation - Internal

28 November 2007 Internal T.I. 2007-0254441I7 - Corporate Distributions

Unedited CRA Tags
113(1)(a)

Principal Issues: Whether a particular distribution of profits from a Brazilian entity is a dividend.

Position: In this case, yes.

Reasons: The "quota" of a Brazilian limitada would be considered to be "shares" such that a distribution in respect of such shares would be a dividend.

7 November 2007 Internal T.I. 2007-0253861I7 F - Partie non-imposable du gain en capital

Unedited CRA Tags
53(2)h)(i.1) 248(25.3) 132.1 53(1)d.2)
Summary Under
Tax Topics - Income Tax Act - Section 132.1 - Subsection 132.1(2)
no ACB increase under s. 132.1(2) if no previous reduction under s. 53(2)(h)(i.1)
Summary Under
Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) - Clause 53(2)(h)(i.1)(B) - Subclause 53(2)(h)(i.1)(B)(I)
s. 53(2)(h)(i.1)(B)(I) designation does not increase unit ACB

Principales Questions:
Conséquences fiscales résultant de l'attribution d'un gain en capital non imposable sur le prix de base rajusté d'une unité dans une fiducie de fond commun de placement si le montant attribué n'a pas été payé et n'était pas payable au détenteur de l'unité.

Position Adoptée: Ne réduit ni n'augmente le prix de base rajusté de l'unité

Raisons: Interprétation de la Loi.