Income Tax Severed Letters - 2013-08-14

Ruling

2013 Ruling 2013-0483341R3 - Supplemental Ruling

CRA Tags
88(1)

Principal Issues: Amendments to proposed transactions brought to our attention.

Position: Amendments to the third paragraph of Ruling D of the original rulings no. 2012-045142 and confirmation that, subject to this amendment and to the conditions, limitations, qualifications, and comments set out therein, the original Ruling no. 2012-045142 will continue to be binding on the CRA.

Reasons: In compliance with the law.

Ministerial Correspondence

9 July 2013 Ministerial Correspondence 2013-0492281M4 - Settlement re grievance

CRA Tags
6(1)(a)

Principal Issues: Whether settlement is taxable?

Position: Question of fact whether settlement is taxable

Reasons: see 2011-0398651E5

7 June 2013 Ministerial Correspondence 2013-0488841M4 - Medical expense

CRA Tags
118.2

Principal Issues: Query on over-the counter products for METC

Position: Referral to folio

Reasons: Legislation

28 October 2011 Ministerial Correspondence 2011-0409751M4 - Assistance to Employees who live in Slave Lake

CRA Tags
110.1, 6(1)(a)

Principal Issues: Whether assistance provided by a company to its employees who live in Slake Lake (an area recently decimated by wildfires) to cover extra costs for living expenses could be treated as non-taxable to those employees.

Position: The assistance does not have to be included in the taxable income of the employees however it should be noted that the employer will not be entitled to a deduction since the payments are not outlays or expenses made or incurred for the purpose of gaining of producing income from the business.

Reasons: In the circumstances described, the financial assistance provided by the employer is being made for philanthropic reasons and not as a payment to employees for services performed. Therefore we do not consider the payments to have been received by virtue of an office or employment.

Technical Interpretation - External

11 July 2013 External T.I. 2013-0480911E5 - Excess EPSP amount

CRA Tags
144(9), 8(1)(o.2), 6(1)(d), 153(1)(a), 147.1(1), 144(1)

Principal Issues: 1. Whether an excess EPSP amount is considered compensation for RPP purposes. 2. Are contributions/allocations after March 29, 2012, subject to withholdings?

Position: 1. Question of Fact 2. No

Reasons: 1. The excess EPSP amount may be viewed as compensation as it applies to an RPP, however, subject to other conditions, pension benefits provided must be in respect of eligible services as employees. It is a question of fact whether a particular recipient has "eligible service". 2. It is currently the CRA`s view that income tax, CPP and EI withholdings are not required.

9 July 2013 External T.I. 2013-0483171E5 - Medical Expenses-Travel

CRA Tags
118.2(2)(g)

Principal Issues: Can there be an exemption to the 40 km rule for travel under the Medical Expense tax credit?

Position: No

Reasons: A change in the legislation would be needed

2 July 2013 External T.I. 2013-0488381E5 - 107(2) distribution

CRA Tags
80, 107(2), 108(1)

Principal Issues: 1. Property transferred to beneficiary in satisfaction of capital interest with debt owing by the trust to that beneficiary eliminated.

Position: 1. Property transferred represents partial 107(2) distribution & partial payment of debt outstanding-"in kind".

Reasons: 1. Debt must be settled for face value = fmv or tax consequences of debt forgiveness may result; gain may occur on portion of the property disposed of by the trust in payment of debt.

26 June 2013 External T.I. 2013-0490711E5 F - Disposition en contrepartie de 1$

CRA Tags
69(1)
Summary Under
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c)
nature of Quebec gift
Words and Phrases
gift

Principales Questions: L'acquisition d'un bien en contrepartie d'un dollar est-elle considérée une acquisition par donation aux fins de l'alinéa 69(1)c) ?
Whether acquisition of property in consideration of one dollar is considered an acquisition by gift under paragraph 69(1)(c)?

Position Adoptée: Pourrait être le cas selon les circonstances.
Could be the case depending on circumstances.

Raisons: La question de déterminer si une acquisition peut être considérée une acquisition par donation doit généralement être faite sur la base des rapports juridiques créés par le contrat d'acquisition du bien.
The question to determine whether an acquisition can be considered an acquisition by gift must generally be done on the bases of the legal relationship created by the contract of acquisition of the property.

19 June 2013 External T.I. 2012-0465651E5 - Part XIII Tax on Interest Paid to Non-resident

CRA Tags
251(2), 212(1)(b), 251(1)

Principal Issues: Whether the payment of interest by a Canadian corporation to a non-resident corporation which owns 27% of the Canadian corporation is subject to the 25% Part XIII withholding tax.

Position: A question of fact.

Reasons: Even if the corporations are not related, under the 251(1)(c) definition of arms-length, "...it is a question of fact whether persons not related to each other are at a particular time dealing with each other at arm's length."

14 June 2013 External T.I. 2013-0477881E5 F - Régime d'accession à la propriété

CRA Tags
146.01(1)
Summary Under
Tax Topics - Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (e)
use of U.S. home as principal place of residence would also disqualify
Words and Phrases
owner-occupied home principal place of residence

Principales Questions: Est-ce qu'un contribuable peut être admissible au RAP s'il a déjà été propriétaire d'une habitation aux États-Unis mais jamais au Canada? May a taxpayer be eligible for the Home Buyers' Plan ("HBP") if the taxpayer has already owned a home in the United States but never in Canada?

Position Adoptée: Oui, si toutes les conditions sont respectées. Le fait que l'habitation ait été située au États-Unis n'est pas un critère pertinent. / Yes, if all conditions are met. The fact that the home has been located in the United States is not a relevant criterion.

Raisons: La Loi; The Act

11 June 2013 External T.I. 2013-0484781E5 F - Établissement domestique autonome

CRA Tags
118(1)(b), 248(1)
Summary Under
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b)
contributing to the expenses of the owner and co-occupant does not qualify
Words and Phrases
maintain a self-contained domestic establishment

Principales Questions: Que veut dire l'expression « tenir un établissement domestique autonome » aux fins de l'alinéa 118(1)b) ? / What does the phrase "maintain a self-contained domestic establishment" mean for the purposes of paragraph 118(1)b)?

Position Adoptée: Le particulier doit être responsable de l'entretien de son établissement domestique autonome. / The individual must be responsible for the upkeep of its self-contained domestic establishment.

Raisons: La loi; The Act

7 June 2013 External T.I. 2013-0488501E5 - DSLP - Fringe Benefits

CRA Tags
248(1), ITR 6801(a)(iii)

Principal Issues: Would certain payments made to an employee during a leave of absence under a deferred salary leave plan be acceptable for purposes of subparagraph 6801(a)(iii) of the Regulations?

Position: No.

Reasons: The payments described are not part of the salary deferred during the deferral period and, in our view, would not be considered fringe benefits.

30 May 2013 External T.I. 2013-0479671E5 F - Montant pour aidants naturels

CRA Tags
118(4)(d), 118(1)(c.1), 118(4)(c)
Summary Under
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(c.1)
care for ex-spouse in another home did not qualify

Principales Questions:
Un particulier demande s'il est possible de lui accorder le montant pour aidants naturels malgré le fait qu'il ne respecte pas toutes les conditions prévues à l'alinéa 118(1)c.1).
A taxpayer would like to know if he/she is eligible to the caregiver amount even if he/she does not meet all the conditions under paragraph 118(1)c.1).

Position Adoptée:
Non.
No.

Raisons:
Libellé de la loi.
Wording of the act.

Technical Interpretation - Internal

8 August 2013 Internal T.I. 2013-0483291I7 - ETC and TTC - XXXXXXXXXX

CRA Tags
118.6(2), 118.5(1)(a)

Principal Issues: 1. Whether a student is entitled to claim the education and tuition tax credits where the student is enrolled in a professional certification program at a professional institute which requires the student to take courses at a university in Canada.
2. Who is responsible for issuing a T2202A certificate to the student: the Institute or the University?

Position: 1. Question of fact.
2. Question of fact.

Reasons: 1. The legislation.
2. The legislation.

8 August 2013 Internal T.I. 2012-0447351I7 - TTC - Non-transferable professional credit courses

CRA Tags
118.5(1)(a)

Principal Issues: Whether the fact that the professional course credits are non-transferrable to a university academic program prevents a student from claiming the tuition fees

Position: No

Reasons: The legislation.

11 July 2013 Internal T.I. 2013-0482171I7 - Judge's Income Tax

CRA Tags
ITR 205(1), 6(1)(c), 5, ITR 200(1), 153(1)(a), 8

Principal Issues: Questions about income tax for judges in Canada.

Position: General advice provided.

Reasons: There is no interpretive issue to be resolved.

5 July 2013 Internal T.I. 2013-0491991I7 - Lottery Ticket Retailers

CRA Tags
9

Principal Issues: Is the administrative position described in paragraphs 3 and 4 of IT-404R to be sustained?

Position: No

Reasons: The law.