Income Tax Severed Letters - 2015-09-23

Ruling

2015 Ruling 2014-0548491R3 - Split-up XXXXXXXXXX Butterfly

CRA Tags
55(3)(b), 55(2)
split-up butterfly for transfer of DC's property to TCs for two of three brothers

Principal Issues: Whether the butterfly dividends are exempt from the application of subsection 55(2) by virtue of paragraph 55(3)(b).

Position: Yes, favourable rulings given.

Reasons: Complies with paragraph 55(3)(b) and previous CRA positions.

2015 Ruling 2014-0534121R3 - Canadian Exploration Expenses - New Mine

CRA Tags
66.1(6)

Principal Issues: 1. Whether the XXXXXXXXXX will be a mine in a mineral resource that exists on the Concession for the purposes of subparagraph (f)(vi) of the definition for "Canadian exploration expense" under subsection 66.1(6) of the Act? 2. Whether expenditures relating to a proposed new mine will qualify for inclusion for the purposes of paragraph (f) of the definition for "Canadian exploration expense" under subsection 66.1(6) the Income Tax Act?

Position: (1) No (2) Yes

Reasons: Based upon the written opinion from Natural Resources Canada.

Technical Interpretation - External

19 August 2015 External T.I. 2015-0587981E5 - Renunciation of CRCE

CRA Tags
66(15), ITR 1219, 66.1(6), 66(12.6)
Natural Resources Canada listing of project development activities

Principal Issues: Under what circumstances costs incurred for design and installation of ground-source heat pump can be renounced to shareholders of flow-through shares?

Position: Based on the applicable legislation

Reasons: Based on the applicable legislation

11 August 2015 External T.I. 2015-0592441E5 F - Test wind turbines

CRA Tags
ITR 1219
change to GPS coordinates does not affect 2013-0490631E5

Principal Issues: Change to location of wind turbines

Position: Confirmation that assuming that no other changes were made to the project and, subject to the conditions, limitations, qualifications, and comments set out in original interpretation 2013-0490631E5, the interpretations provided in that document will continue to be valid.

Reasons: 2013-0490631E5 and XXXXXXXXXX confirmation that as-built coordinates meet spacing requirement

Technical Interpretation - Internal

15 June 2015 Internal T.I. 2015-0583081I7 - Refund Request - Normal Reassessment Period

CRA Tags
164(1), 152(4), 152(3.1)

Principal Issues: 1.Where a valid waiver is provided for a particular taxation year, whether a refund may be issued if the request is made beyond the date required by paragraph 164(1)(b) of the Act. 2. Would the answer change if there is a valid waiver for the same issues the refund request is based on?

Position: 1.No.

Reasons: 1. Paragraph 164(1)(b) of the Act does not provide for a refund beyond the period within which the Minister would be allowed under subsection 152(4) to assess tax payable, regardless of whether a waiver was filed for the taxation year. The application for the refund must be made within the time frames provided by 164(1)(b). Furthermore, a waiver does not extend the time frame to request a refund. 2. Where the details of the waiver also provide for a refund as a reasonable outcome of the audit, the refund request may be considered to have been made as part of the waiver and the Minister may issue the refund.