Income Tax Severed Letters - 2014-06-11

Ruling

2013 Ruling 2013-0477241R3 - Supplementary Ruling

Principal Issues: Supplemental Ruling

Position: See below.

Reasons: See below.

2013 Ruling 2011-0397081R3 - Bump Transaction

CRA Tags
246(1), 88(1)(d), 95(6), 56(2), 245, 15(1)
eliminate sandwich structure following a spin-off by public company Target and cash acquisition of Target shares/no-buy covenant of spinco to comply with s. 88(1)(c)(vi)(B)(III)(2)

Principal Issues: Whether the 88(1)(d) bump will be available in respect of the proposed transactions. Whether the 'benefit' rules in subsections 15(1), 56(2) and 246(1) will apply to the proposed transactions. Whether the GAAR will apply to the proposed transactions.

Position: The bump will be available, provided certain conditions are met. The benefit rules will not apply. The GAAR will not apply.

Reasons: The proposed transactions technically comply with the bump rules and do not run afoul of the bump denial rules. No "benefits" will be conferred or otherwise transferred within the meaning of the relevant provisions.

2012 Ruling 2011-0403291R3 - Treaty exempt sale

partnership distribution not disposition
Treaty step-up to avoid the application of s. 55(2) to a spin-off made to effect an arm's length sale of the rump
Treaty step-up to avoid the application of s. 55(2) to a spin-off made to effect an arm's length sale of the rump

Principal Issues: Whether Canada retains the right to tax the gain on shares of a Canadian corporation sold by a non-resident under the applicable treaty.

Position: No.

Reasons: Application of the treaty.

Technical Interpretation - External

22 May 2014 External T.I. 2014-0526131E5 - Donation of a fossil

CRA Tags
118.1, 248(32), 248(30), 248(31)

Principal Issues: Whether the transfer of the custody of a fossil to a qualified donee can be considered a charitable gift.

Position: Question of fact and law.

Reasons: There must be a transfer of property.

25 April 2014 External T.I. 2014-0516961E5 - Political contributions - receipts

CRA Tags
ITR Part XX, 127(3)

Principal Issues: Clarification of the receipting requirements for political contributions.

Position: General comments provided.

Reasons: The legislation.

4 March 2014 External T.I. 2013-0513251E5 - Ecogifts

CRA Tags
118.1, 248(32), 248(30), 248(31)

Principal Issues: Whether the donation of a conservation easement by a landowner would be considered a gift for tax purposes?

Position: Question of fact. Provided general comments.

Reasons: See below.