Income Tax Severed Letters - 2014-10-22

Ruling

2014 Ruling 2012-0473041R3 - First Nation - Limited Partnership

CRA Tags
149(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c)
First Nation with elected council and performing functions of government

Principal Issues: Is the income allocated to the First Nation from a limited partnership exempt from tax because the First Nation is a public body performing a function of government?

Position: yes

Reasons: The First Nation is government by an elected chief and band council and has demonstrated that they perform several functions of government. Therefore, the income allocated from the limited partnership is exempt.

2013 Ruling 2012-0472821R3 - 149(1)(c) Ruling

CRA Tags
149(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c)
council of band chiefs

Principal Issues: Whether a particular XXXXXXXXXX Council qualifies as a public body performing a function of government for purposes of paragraph 149(1)(c).

Position: Yes.

Reasons: See facts.

Technical Interpretation - External

26 September 2014 External T.I. 2014-0531441E5 - Unfunded LTD plan payment to non-resident employee

CRA Tags
248 "salary or wages", ITR 200, ITR 102, 5, 6(1)(a), 153(1)(a)
Summary Under
Tax Topics - Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(c)
employee long-term disability payments: remuneration under ITA; pension under Cda-U.S. Convention
Summary Under
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a)
employee long-term disability payments: remuneration under ITA; pension under Cda-U.S. Convention
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 18
employee long-term disability payments: remuneration under ITA; pension under Cda-U.S. Convention

Principal Issues: Are the LTD payments subject to withholding under Part XIII of the Act?

Position: No.

Reasons: The LTD payments are subject to tax under Part I and subject to withholding under section 153.

25 September 2014 External T.I. 2012-0451411E5 F - Mutual Holding Corporation

CRA Tags
139.1(1)
Summary Under
Tax Topics - Income Tax Act - Section 139.1 - Subsection 139.1(1) - Mutual Holding Corporation
"holding" must be direct holding
Summary Under
Tax Topics - Income Tax Act - Section 139.1 - Subsection 139.1(1) - Mutual Holding Corporation
“holding” refers to direct holding/this purpose is a question of fact
Words and Phrases
holding

Principales Questions: 1. Does a mutual company qualify as a mutual holding corporation in various specific situations?

Position Adoptée: 1. We are not commenting on the specific situations other than in the context of a ruling request. However, if the mutual company does not own directly shares of the insurance corporation, it will not be a mutual holding corporation as defined in subsection 139.1(1).

Raisons: 1. Wording of the definition of mutual holding corporation at subsection 139.1(1).

24 September 2014 External T.I. 2014-0543091E5 - UK Personal Pension - RRSP

CRA Tags
248(1), 60(j), 56(1)(a)(i)
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit
U.K personal pension scheme not a pension plan
Summary Under
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j)
U.K personal pension scheme not a pension plan

Principal Issues: Can an amount received from a UK personal pension scheme that is self-funded be transferred to an RRSP under 60(j) of the Act?

Position: No.

Reasons: Amounts received from a self-funded UK PPS will not be superannuation or pension benefits paid from a foreign pension plan and therefore not eligible for a tax-deferred transfer under 60(j) of the Act.