Income Tax Severed Letters - 2015-02-18

Technical Interpretation - External

6 February 2015 External T.I. 2014-0560121E5 - 149(1)(c) exemption & qualified donee registration

CRA Tags
149.1(1), 149(1)(c)

Principal Issues: Whether an organization approved for registration as a qualified donee as a public body performing a function of government by the Charities Directorate requires a separate ruling to claim tax exemption under 149(1)(c).

Position: No, unless facts change.

Reasons: It has been determined that the organization is a public body performing a function of government therefore no additional ruling is required.

3 February 2015 External T.I. 2014-0561101E5 - Replacement Property - Involuntary Disposition

CRA Tags
13(4), 44(5), 13(4.1), 44(1)

Principal Issues: Whether an office building that is acquired as a rental property in replacement of an industrial warehouse (also a rental property) that was expropriated would be considered a "replacement property" as defined in subsections 13(4.1) and 44(5) of the Act?

Position: Question of fact whether the requirements of a "replacement property" as defined in subsections 13(4.1) and 44(5) are met and specifically whether the same or similar use test in paragraphs 13(4.1)(a.1) and 44(5)(a.1) is met.

Reasons: See analysis.

19 November 2014 External T.I. 2014-0530711E5 - Indian Tax Exemption - Employment Income

CRA Tags
81(1)(a), Indian Act - 87

Principal Issues: Whether income of Indian employees should be exempt?

Position: Question of fact, but not likely.

Reasons: See below.

19 November 2014 External T.I. 2014-0552451E5 - Active business income

CRA Tags
125(1), 125(7)

Principal Issues: Whether certain income received by a taxpayer can be considered active business income under the Act for purposes of the small business deduction ("SBD")?

Position: Question of fact.

Reasons: The law.

Conference

10 October 2014 APFF Roundtable Q. 12, 2014-0538161C6 - APFF Conference, Q. 22 - ACB of interests in a partnership

Summary Under
Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i)
Class A and B tracking units held by partner are single property

PRINCIPAL ISSUES: Whether different classes of units in a partnership constitute different properties for the member and whether they can have different ACBs?

POSITION: No

REASONS: CRA's longstanding position

10 October 2014 APFF Roundtable Q. 16, 2014-0538031C6 - APFF 2014 Q. 16 - Capital gain

CRA Tags
55(3)(a), 55(3.01)(g), 55(2)
Summary Under
Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(b) - Subparagraph 251(2)(b)(i)
incorporator related to corporation
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a)
interposition of holdco to permit related-person spin-off compliant with s. 55(3)(a)(ii) and (v)
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(g)
interposition of holdco to permit related-person spin-off compliant with s. 55(3)(a)(ii) and (v)

PRINCIPALES QUESTIONS: Whether the paragraph 55(3)(a) exemption applies in two scenarios

POSITION ADOPTÉE: In the first scenario, no. Possibly in the second scenario.

RAISONS: See below.