Income Tax Severed Letters - 2008-11-28

Principales Questions: (1) Quel est le traitement fiscal d'une commission qui sera reçue par un travailleur autonome, qui est un conseiller en sécurité financière, suite à la vente de divers produits financiers?
(2) Si la commission est non imposable, quels sont les délais pour modifier une déclaration d'impôt?

Position Adoptée: (1) Question de fait mais généralement, une commission reçue pour la vente d'une assurance-vie ou une assurance maladie grave n'est pas imposable. Par contre, les commissions reçues sur la vente des autres produits financiers sont imposables.
(2) Le ministre peut accorder un allègement pour toute année d'imposition qui se termine 10 ans avant l'année civile au cours de laquelle la déclaration de revenus du contribuable est produite.

Raisons: La position générale est conforme à la position administrative de l'ARC dans des dossiers précédents.

Principal Issues: Whether the cost of an apartment would be deductible in computing the taxpayer's income from a business.

Position: Question of fact but in this case no.

Reasons: The law.

Principal Issues: The taxpayer wants to know if he qualified for the Northern Residents Deduction for the 2007 taxation year.

Position: No.

Reasons: While we had very few facts, it appears that the taxpayer did not live in a prescribed northern zone for any qualifying period. However, the particular work location may qualify as a Remote Work Location.

Principal Issues:
1. Whether a gift received by an employee through a draw is included in income pursuant to paragraph 6(1)(a) of the Act where:
a) the prize is provided by the employer;
b) the prize is paid for and provided by a work committee that is not funded or controlled by the employer;
c) the prize is provided by a work committee, that is not funded or controlled by the employer, from donations from third parties that are unrelated to the employer (e.g., a gift certificate from a local store).
2. Would the answer to question 1 a), b) or c) change if the winner of the draw had to answer a skill testing question?

Position:
1. a) Yes, taxable to the employee under paragraph 6(1)(a) of the Act;
1. b) & c) Non-taxable to the employee;
2. No.

Reasons:
This is in line with the CRA Guidelines regarding the income tax implications for employees in receipt of gifts and awards given through prize draws and social committees on our website at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/gfts/wrds/twfq-eng.html.

2008 - 029378
XXXXXXXXXX Renee Sigouin
(613) 957-2128
November 17, 2008

Principal Issues: What are the tax implications to an employee receiving a one-time payment for professional development?

Position: Question of fact.

Reasons: If the amount is in respect of the cost of professional development that is primarily for the benefit of the employer then the amount should not be taxable. If the amount is paid as an allowance with no requirement that any professional development be undertaken then the amount would be taxable.

Principal Issues: Whether a taxable capital gain realized on the disposition of real property situated outside Canada by a Canadian resident individual is subject to tax in Canada

Position: Yes

Reasons: A Canadian resident individual is subject to income tax in Canada on his or her worldwide income