Income Tax Severed Letters - 2008-08-01

Ruling

2007 Ruling 2007-0224741R3 - Capital of municipal corporation

Unedited CRA Tags
149(1)(d.5) 149(1.3) 149(1.1)

Principal Issues: Will the proposed issuance of shares and debt to a private investor, in and of itself, cause a municipal subsidiary to cease to be tax exempt?

Position: No.

Reasons: In and of itself, the shares and debt proposed to be issued will not result in the municipality holding less than 90% of the capital of the corporation.

Technical Interpretation - External

25 July 2008 External T.I. 2008-0284861E5 F - Bourse post-doctorale

Unedited CRA Tags
56(1)(n)
Summary Under
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n)
post-doctoral fellowship recognized under s. 56(1)(n) rather than (o), as the research was merely a means to furtherance of academic career

Principales Questions: Est-ce qu'une bourse du XXXXXXXXXX , qui est attribuée à un contribuable afin que ce dernier complète des études post-doctorales, est une bourse visée à l'alinéa 56(1)n) de la Loi de l'impôt sur le revenu?

Position Adoptée: Oui.

Raisons: Une bourse d'entretien, d'études ou de recherche est visée à l'alinéa 56(1)n) si elle permet à un contribuable de progresser dans sa carrière universitaire dans la mesure où la recherche n'est qu'un moyen, si essentiel soit-il, de réaliser ce but.

23 July 2008 External T.I. 2008-0279601E5 - Qualified Educational Programs and Form T2202A

Unedited CRA Tags
118.5 118.6

Principal Issues: Is the Residency program offered by the Entity a "qualified educational program" so that the Entity can issue students in the program a form T2202A?

Position: Question of fact, but likely no.

Reasons: To qualify for the ETC, the student must be enrolled at a "designated educational institution" in a "qualifying educational program". Based on the very limited facts provided it is not clear that the Entity meets the definition of "designated educational institution" nor is it clear that students registered in the Residency program are taking courses from the Entity that meet the definition of "qualifying educational program"

21 July 2008 External T.I. 2007-0234381E5 - filing requirements for a bare trust

Unedited CRA Tags
104(1)

Principal Issues: When the income of the trust is attributed to the settlor under subsection 75(2), is a T3 return still required to be filed.

Position: Yes.

Reasons: A trust is required to file a T3 return unless it is a trust that is ignored for the purposes of the Act (e.g., a bare trust) or it meets the administrative exceptions set out in the T3 Guide. A trust under which the income is attributed to the settlor under 75(2) is not eligible for the administrative exception.

21 July 2008 External T.I. 2007-0251601E5 - filing requirements of a corporate (bare) trustee

Unedited CRA Tags
104(1) 150(1)(c)

Principal Issues: Where a corporation holds real property as bare trustee, what are the corporation's filing requirements in respect of that property?

Position: Income from property held in trust is reported on a T3 return unless the trust meets the exceptions in subsection 104(1). If the trust is deemed not to be a trust for tax purposes, the beneficiary reports the income from that property as it is earned by the bare trust. However, the corporation is still required to file a T2 corporate return.

18 July 2008 External T.I. 2008-0267201E5 - Part XIII & bareboat charters

Unedited CRA Tags
212(1)(d) 212(13)(a); Art 7, 12 and 21 of the Canada-Norway Treaty; Art 7, 12 and 23 of the Canada-Netherlands Treaty.

Principal Issues: Whether 212(1)(d) applies to payments made by a resident of Norway to a resident of the Netherlands for the rental of a vessel in a bareboat charter arrangement, where, that vessel is used in Canada (by a resident of Canada).

10 July 2008 External T.I. 2008-0278411E5 - Eligible Amount of Monetary Contributions

Unedited CRA Tags
127(3) 248(31) 248(32)

Principal Issues: How is the eligible amount of a monetary contribution determined where a person who makes a monetary contribution to a party becomes entitled to a ticket to the party's annual convention.

Position: The eligible amount of a monetary contribution for purposes of the proposed amendments to subsection 127(3) of the Income Tax Act would be the amount of the person's monetary contributions to the party in the year, less the fair market value of any advantages that the person or persons not dealing at arm's length with the person became entitled to receive or enjoy in connection with having made the monetary contributions.

Reasons: Proposed legislation.