Income Tax Severed Letters - 2015-02-25

Technical Interpretation - External

9 February 2015 External T.I. 2013-0480881E5 F - Disposition of Eligible Funeral Arrangement Contracts

CRA Tags
148.1(2)(b)(ii), 148.1(2)(c)
proceeds on disposition of funeral home business
proceeds on disposition of funeral home business

Principales Questions: Are amounts received by a qualifying person for the disposition of EFA contracts, as part of the sale of the qualifying person's business, exempt from tax by virtue of subparagraph 148.1(2)(b)(ii)?

Position Adoptée: No.

Raisons: These amounts are not received because of the disposition of an interest under an EFA or an interest in a trust governed by an EFA but rather because of the potential of future profit inherent to these contracts.

2 February 2015 External T.I. 2013-0510751E5 F - Cooperatives and Dividend Refund

CRA Tags
129, 248(1) "share", 136, 135.1
entitlement of agricultural cooperative corporations or cooperative corporations to dividend refunds
fractions of cooperative capital not shares

Principales Questions: (1) Whether an agricultural cooperative corporation, as defined in subsection 135.1(1), that is a private corporation and has an RDTOH balance may be eligible to a dividend refund pursuant to subsection 129(1)? (2) Whether a cooperative that is neither, for the purposes of the Act, an agricultural cooperative corporation nor a cooperative corporation, as respectively defined in subsections 135.1(1) and 136(2), may be eligible to a dividend refund? (3) Whether a cooperative may qualify as an agricultural cooperative corporation or a cooperative corporation if more than 90% of the members are carrying on the business of farming, but only hold 70% of the shares?

Position Adoptée: (1) Yes. (2) No. (3) Question of fact.

Raisons: Based on our interpretation of section 129, 135.1, 136 and the definition of "share" and "corporation" in subsection 248(1), and consistent with our positions in previous technical interpretations.

19 December 2014 External T.I. 2014-0543931E5 - Retroactive support Amount

CRA Tags
56.1(4), 56.1(3), 60.1(3)

Principal Issues: 1. Does subsection 60.1(3) apply to a particular factual situation?

Position: 1. No.

Reasons: 1. No amounts were paid between the parties.

6 November 2014 External T.I. 2014-0537851E5 - research grant, fellowship, employment income

CRA Tags
63, 5(1), 56(1)(o), 56(1)(n)

Principal Issues: What is the proper income tax treatment of a post-doctoral fellowship (PDF) and a travel/conference allowance received from a trust that is administered by a registered charitable organization.

Position: It depends on the facts. A PDF is generally taxable as employment income, research grant or fellowship income.

Reasons: General comments given.

Technical Interpretation - Internal

3 October 2014 Internal T.I. 2014-0540621I7 - Estate of the late XXXXXXXXXX

CRA Tags
  • Principal Issues: The TSO has requested our comments in regard to arguments made by the estate representatives in regard to our positions in TI 2013-049014.

Position: Comments provided to TSO.

Reasons: See below.

October 3, 2014

2 January 2014 Internal T.I. 2013-0490141I7 - Charitable Donations

CRA Tags
118.1(5), 110.1(1)
s. 118.1(5) applied where gift of subsidiary notes satisfied with subsidiary property
s. 118.1(5) applied where discretion in gift mechanics

Principal Issues: Whether certain donation amounts claimed by various taxpayers were all gifts by will

Position: Yes

Reasons: See memo