Income Tax Severed Letters - 2012-07-13

Technical Interpretation - External

21 June 2012 External T.I. 2011-0430901E5 - Leasing Commission Costs

Unedited CRA Tags
12(1)(x), 13(7.4), 53(2.1), 9(1), 96(1)

Principal Issues: Whether an amount which a tenant reimburses a landlord with respect to leasing commission costs is a capital cost or a current expense?

Position: Question of fact.

Reasons: Depends on the specific facts of the lease agreement.

14 June 2012 External T.I. 2011-0430131E5 - Subsection 118.1(5) - Gift by Will

Unedited CRA Tags
118.1(5); 118.1(3); 248(31)
Summary Under
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(5)
non-discretion test

Principal Issues: Clarification regarding the dates and value to be used on official donation receipts for gifts by will.

Position: General comments provided.

Reasons: Previous opinions issued.

5 June 2012 External T.I. 2012-0437831E5 - Professional Fees

Unedited CRA Tags
9, 18, 60(o)
Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose
Summary Under
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o)
voluntary disclosure costs not covered

Principal Issues: Whether the legal fees incurred by a taxpayer with respect to a voluntary disclosure are an allowable deduction according to the Income Tax Act.

Position: No.

Reasons: Our position is the professional fees relating to the filing of a voluntary disclosure do not meet the requirements of the provisions of subsection 60(o) of the Act due to the fact that they do not relate to an objection or appeal. In addition, it is our view that these fees were not incurred to earn income from a business or property. Therefore they are not deductible under any other section of the Act.

Technical Interpretation - Internal

12 June 2012 Internal T.I. 2012-0432221I7 - Volunteer Firefighter Tax Credit (VFTC)

Unedited CRA Tags
118.06(1)

Principal Issues: Whether a Canadian resident who lives on the Canada-US border and provides volunteer firefighting services at a fire station in the US will qualify for the VFTC if all other requirements under section 118.06 of the Income Tax Act are met.

Position: Yes.

Reasons: According to the content in paragraph 118.06(1) of the Act.

7 June 2012 Internal T.I. 2012-0435561I7 - Refunds on Post-Bankruptcy Returns

Unedited CRA Tags
S. 164(1) & (1.5); 128(2), 150(1), 249(1) ITA. S. 67(1)(c ), 71 BIA.
Summary Under
Tax Topics - Income Tax Act - Section 164 - Subsection 164(1)
tax over-remittance after bankruptcy

Principal Issues: Should an overpayment of taxes for the post-bankruptcy taxation year be issued to the trustee in bankruptcy?

Position: Yes.

Reasons: Paragraph 67(1)(c) of the Bankruptcy and Insolvency Act states that a refund arising from the calendar year of a bankruptcy vests in the trustee. The post-bankruptcy refund arises from the filing of the return for the post-bankruptcy year, which is a part of the calendar year. It follows that the post-bankruptcy refund should be sent to the trustee.