Income Tax Severed Letters - 2008-07-18

Ruling

2008 Ruling 2007-0237501R3 - Public Corporation Spin-off

Unedited CRA Tags
55(3)(b) 55(3.02)

Principal Issues: Whether a proposed spin-off is exempt from the application of subsection 55(2)

Position: Yes

Reasons: It meets the requirements of 55(3)(b)

2008 Ruling 2008-0269281R3 - Donation of flow-through shares

Unedited CRA Tags
110.1 38(a.1) 248(32)

Principal Issues: Whether a donation of flow-through shares constitutes a gift for income tax purposes.

Position: Yes, in this particular case.

Reasons: Based on the facts and having regard to the caveats provided in the Ruling, it is our view that the donation would constitute a gift for income tax purposes and that the CEE renounced to the donor pursuant to the flow-through share financing will not constitute an advantage under the draft split-receipting rules.

XXXXXXXXXX 2008-026928

2008 Ruling 2008-0281941R3 - Donation of flow-through shares

Unedited CRA Tags
118.1 38(a.1) 248(32)

Principal Issues: Whether a donation of flow-through shares constitutes a gift for income tax purposes.

Position: Yes, in this particular case.

Reasons: Based on the facts and having regard to the caveats provided in the Ruling, it is our view that the donation would constitute a gift for income tax purposes and that the CEE renounced to the donor and any investment tax credit claimed pursuant to the flow-through share financing will not constitute an advantage under the draft split-receipting rules.

XXXXXXXXXX 2008-028194

Technical Interpretation - External

9 July 2008 External T.I. 2008-0269021E5 - Computation of Income- Meals Consumed on a Trawler

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

Principal Issues: Are the cost of the meals charged to a self-employed fisherman while working on a fishing vessel for an extended period of time deductible in computing fishing income for the particular year?

Position: Question of fact but generally yes.

Reasons: The law.

XXXXXXXXXX 2008-026902
Michael Cooke
July 9, 2008

8 July 2008 External T.I. 2008-0273771E5 - PHSP - Proprietorships and Corporate Employer

Unedited CRA Tags
20.01; 248(1)

Principal Issues: 1) Whether a cost-plus plan qualifies as a PHSP where it provides coverage for the sole proprietor and household members, but there are no employees. 2) Whether a corporate employer may have a self-administered plan that qualifies as a PHSP.

Position: 1) No 2) Yes

Reasons: 1) It does not meet the condition of insurance. 2) Paragraph 7, IT-339R2

7 July 2008 External T.I. 2008-0274111E5 - Disposition of exempt life insurance policy

Unedited CRA Tags
148(1) 56(1)(j) 148(9)

Principal Issues: Is the disposition of an exempt life insurance policy taxable?

Position: Yes.

Reasons:
The disposition is taxable pursuant to subsection 148(1) and paragraph 56(1)(j).