Income Tax Severed Letters - 2011-10-21


2011 Ruling 2009-0314541R3 - Oil Sands Project

Unedited CRA Tags
Regulations 1100(1)(y.1), 1101(4e), 1104(7) and 1104(8.1); definitions in Regulation 1104(2); Class 41; Class 41.1

Principal Issues: Whether the XXXXXXXXXX wells of the project constitute one mine and whether depreciable property to be used in the project is property described in Class 41.1?

Position: Yes.

Reasons: Opinion received from NRCan and review of submitted documentation. Since depreciable property acquired for the project is not grandfathered, it will be included in Class 41.1 (not Class 41) such that accelerated CCA will be phased out as provided in Regulation 1100(1)(y.1).

Technical Interpretation - External

13 October 2011 External T.I. 2010-0360971E5 - Home Renovation Tax Credit

Unedited CRA Tags
ITA 118.04; 248; 104(1)

Principal Issues: Can an individual settlor of a trust claim the HRTC for renovation expenditures incurred by him/her in respect of a dwelling owned by a personal trust?

Position: Factual Determination

Reasons: The availability of the HRTC is, among other conditions, dependent on who owns the dwelling and, where the trust owns the dwelling, who the beneficiary of the trust is.

13 October 2011 External T.I. 2010-0356041E5 - Personal Trust Principal Residence Exemption

Unedited CRA Tags
54, 248(25)

Principal Issues: The taxpayer requests our opinion on whether a personal trust may designate two properties, for the purposes of the principal residence exemption, for the same taxation year.

Position: For a particular taxation year, a personal trust may designate one of its properties for the purposes of the principal residence designation.

Reasons: The mechanics of paragraphs 40(2)(b) and 54(c) of the Act only allow the personal trust, as the taxpayer, to designate one particular property as its principal residence.

12 October 2011 External T.I. 2011-0416451E5 - In-vitro fertility program

Unedited CRA Tags

Principal Issues: Whether the cost of the in-vitro fertilization procedure qualifies as a medical expense for purposes of the medical expense tax credit.

Position: Yes.

Reasons: As long as the requirements of paragraphs 118.2(2)(a) and (o) are met.

6 October 2011 External T.I. 2011-0406601E5 - Education Tax Credit- Part-Time Student

Unedited CRA Tags
118.6(2); 63(3)

Principal Issues: 1. How does the ITA differentiate between a full-time student and a part-time student for the purposes of the child care expense deduction and the Education Tax Credit?

Position: 1. Although the time requirements under 63(3) and 118.6 are similar, the Education Tax Credit contains specific definitions for designated educational institution, qualifying educational program and specified educational program

Reasons: 1. The legislation.

22 September 2011 External T.I. 2011-0403991E5 F - Crédit d'impôt pour études

Unedited CRA Tags
program means program of study, not individual course
Words and Phrases

Principal Issues: Est-ce qu'un cours universitaire qui est donné en 3 modules à raison d'un module de 2 jours consécutifs par mois constitue un " programme de formation admissible " aux termes de l'article 118.6?

Position: Nous sommes d'avis que le terme " programme " tel qu'utilisé à la définition de " programme de formation admissible " au paragraphe 118.6(1) réfère au programme d'étude plutôt qu'à chacun des cours individuellement.

Reasons: Analyse législative.