Income Tax Severed Letters - 2015-11-25


2015 Ruling 2015-0581271R3 - Structured Settlement

CRA Tags

Principal Issues: Will the payments to be received pursuant to the structured settlement agreement be taxable in the claimant's hands under the circumstances described?

Position: No

Reasons: The terms of the structured settlement are consistent with the CRA's position as set out in paragraph 5 of Interpretation Bulletin IT-365R2

Technical Interpretation - External

3 November 2015 External T.I. 2015-0584261E5 F - Blood relationship - step brother

CRA Tags
251(2), 252(2), 251(6), 252(1)

Principales Questions: Whether two step-brothers are related by blood.

Position Adoptée: Yes.

Raisons: The law and previous positions.

8 August 2015 External T.I. 2015-0596781E5 - Transfer - RRIF Excess to a Life Annuity

CRA Tags
146.3(2), 60(l)

Principal Issues: 1) Is the offsetting deduction claimed on an individual's tax return equal to the excess amount used to purchase a life annuity? 2) Is Form T2030 used to directly transfer the excess amount? 3) What is the meaning of partial commutation of a life annuity? and 4) What are the revised minimum withdrawal factors announced in the 2015 Budget?

Position: 1) Providing the entire excess amount is transferred an offsetting deduction can be claimed. 2) Yes. 3) Provided general comments on the meaning of partial commutation. 4) Provided an excerpt from the 2015 Budget regarding revised factors.

Reasons: 1) Legislation. 2) Prescribed form. 3) Legislation. 4) Factors stated in 2015 Budget.