Income Tax Severed Letters - 2015-12-02

Technical Interpretation - External

2 November 2015 External T.I. 2014-0558991E5 F - Loan from an Amateur Athlete Trust

CRA Tags
143.1
Summary Under
Tax Topics - Income Tax Act - Section 143.1 - Subsection 143.1(1.2) - Paragraph 143.1(1.2)(d)
genuine loan to athlete with adequate prospect of repayment not a transfer of property
Words and Phrases
transfer

PRINCIPALES QUESTIONS: Does a loan from an amateur athlete trust to the athlete for the purchase of a house constitute an amount paid or transferred to the athlete that is deemed to be distributed to the athlete and which would be included in the income of the athlete?

POSITION ADOPTÉE: Question of law and fact as to whether a loan exists or can be made. This will depend on the relationship created between the parties. If the legal relationship between the two separate parties does not create a loan legally, the amount paid or transferred to the amateur athlete is deemed to be distributed to the amateur athlete and should be included in his/her income. If the arrangement between the two separate parties is a valid trust and a bona fide loan is made to the amateur athlete, the amount may on certain conditions not be deemed to be distributed to the amateur athlete and would not be included in his/her income. If a bona fide loan exists, we are generally of the view that it does not constitute a payment or transfer. However, the amount of the loan may be included in the income of the athlete if it is apparent that the athlete will not be able to repay the loan and/or provide reasonable security for repayment.

RAISONS: Analysis of section 143.1 and applicable jurisprudence.

18 February 2015 External T.I. 2012-0471731E5 F - Déductibilité du droit d’usage pour automobile

CRA Tags
6(1)(e), 6(1)(k), 6(2), 8(1)(f)
Summary Under
Tax Topics - Income Tax Act - Section 6 - Subsection 6(2)
no reduction in benefit amount for benefits provided by employee to employer
Summary Under
Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f)
reduced auto enjoyment not an expenditure

PRINCIPALES QUESTIONS: 1. L’avantage imposable d’un employé, relatif à l’usage d’une automobile qui affiche le logo de son employeur, peut-il être réduit afin de tenir compte du fait que l’employeur tire un avantage publicitaire? 2. Dans la négative, l’employé peut-il déduire un montant pour publicité dans le calcul de son revenu d’emploi? [TRANSLATION] 1. Can the taxable benefit of an employee derived from the personal use and availability of an automobile displaying their employer’s corporate logo, be reduced to take into account the benefit that the employer derives in terms of publicity? 2. If the answer to the first question is negative, can the employee deduct an amount for publicity in computing their employment income?

POSITION ADOPTÉE: 1. Non. 2. Non [TRANSLATION] 1. No. 2. No

RAISONS: 1. Le fait qu’il y ait un avantage publicitaire pour l’employeur ne vient pas modifier d’aucune façon que ce soit le calcul de l’avantage à inclure dans le revenu de l’employé aux termes des alinéas 6(1)e) et 6(1)k). Le libellé des alinéas 6(1)e) et 6(1)k) indique que seuls les remboursements qu’un employé (ou une personne qui lui est liée) fait à son employeur (ou à une personne liée à ce dernier) pour le droit d’usage et les frais raisonnables de fonctionnement d’une automobile, respectivement, peuvent réduire l’avantage imposable de l’employé. 2. Le libellé de l’alinéa 8(1)f) exige que les sommes soient dépensées pour gagner le revenu provenant de l’emploi. [TRANSLATION] 1. The fact that the employer derives a benefit in terms of publicity does not alter in any way the computation of the employee’s taxable benefit under subparagraphs 6(1)(e) and 6(1)(k). The wording of paragraphs 6(1)(e) and 6(1)(k) indicates that only those reimbursements that an employee (or a person related to the employee) makes to his or her employer (or a person related to the latter) for the standby charge and the reasonable operating expenses of an automobile, respectively, can reduce the taxable benefit to the employee. 2. The wording of paragraph 8(1)(f) requires that an amount be expended by the taxpayer for the purpose of earning the income from employment.

18 February 2015 External T.I. 2012-0466691E5 F - Revenu d’un Indien hors réserve

CRA Tags
81(1)(a), Indian Act 87
Summary Under
Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87
fact that work performed by non-reserve Indian was for benefit of reserve Indians was insufficient connecting factor

PRINCIPALES QUESTIONS: 1. Le revenu d’emploi d’un Indien est-il exonéré de l’impôt en vertu de l’alinéa 81(1)a) de la Loi et de l’article 87 de la Loi sur les Indiens dans une situation donnée? 2. Le revenu d’entreprise de l’employeur, un Indien, est-il exonéré de l’impôt? [TRANSLATION] : 1. Is an Indian’s employment income exempt from income tax under paragraph 81(1)(a) of the Act and section 87 of the Indian Act in a given situation? 2. Is the employer’s (an Indian) business income exempt from taxation?

POSITION ADOPTÉE: 1. Question de fait mais après analyse, non. 2. Question de fait mais après analyse, non. [TRANSLATION]: 1. Question of fact, but after analysis, no. 2. Question of fact, but after analysis, no.

RAISONS: 1. Aucune des conditions décrites dans les Lignes directrices n’est satisfaite. De plus, nous sommes d’avis que le fait que le travail qui donne lieu au revenu d’emploi soit au bénéfice des Indiens dans la réserve n’est pas à lui seul un facteur suffisant pour situer le revenu d’emploi dans la réserve. 2. En tenant compte de l’ensemble des facteurs pouvant lier le revenu d’entreprise à une réserve, ces liens, selon nous, ne sont pas suffisamment étroits pour situer ce revenu dans une réserve. [TRANSLATION]: 1. None of the conditions described in the Guidelines are met. In addition, we are of the opinion that the fact that the work giving rise to the employment income benefits Indians on the reserve, is not, on its own, sufficient to locate the employment income on a reserve. 2. When considering as a whole the factors that may connect the business income to a reserve, it is our view that a sufficiently close connection does not exist to locate the income on a reserve.

Technical Interpretation - Internal

4 March 2015 Internal T.I. 2014-0527751I7 F - Soutien de revenu accordé aux individus

CRA Tags
56(1)(r), 56(1)(u), 56(1)(n), 56(3), 110(1)(f), 110(1)(g), 153(1)(s), ITR 200(2), ITR 233(1)
Summary Under
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(r)
includes amounts received under the active employment measures of Emploi-Québec

PRINCIPALES QUESTIONS: Quel est le traitement fiscal des sommes versées dans le cadre des mesures actives d’Emploi-Québec?/ What is the tax treatment of amounts paid in the context of the active employment measures of Emploi-Québec?

POSITION ADOPTÉE: Les sommes reçues d’Emploi-Québec à titre d’allocation d’aide à l’emploi et de frais supplémentaires doivent être incluses dans le calcul du revenu du contribuable en vertu du sous-alinéa 56(1)r)(iii). / Amounts received from Emploi-Québec as allowance for employment assistance and additional costs (notably: child care expenses, expenses for transportation and tuition fees) must be included in computing the taxpayer’s income pursuant to subparagraph 56(1)(r)(iii).

RAISONS: Toutes les exigences du sous-alinéa 56(1)r)(iii) sont respectées. / All the requirements under subparagraph 56(1)(r)(iii) are met.

15 December 2014 Internal T.I. 2014-0547191I7 F - Chantier particulier

CRA Tags
6(6)

PRINCIPALES QUESTIONS: Est-ce qu'un contribuable est considéré effectuer un travail de nature temporaire au sens du sous-alinéa 6(6)a)(i)?
Is a taxpayer considered to be performing duties of a temporary nature for the purpose of subparagraph 6(6)(a)(i)?

POSITION ADOPTÉE: Commentaires généraux. General comments provided.

RAISONS: Question de fait. Question of fact.

15 December 2014 Internal T.I. 2014-0544121I7 F - Chantier particulier

CRA Tags
6(6)
Summary Under
Tax Topics - Income Tax Act - Section 6 - Subsection 6(6)
work engagement ceased to be temporary based on a change in circumstances
Words and Phrases
temporary nature

PRINCIPALES QUESTIONS: Est-ce qu’un contribuable est considéré effectuer un travail de nature temporaire au sens du sous-alinéa 6(6)a)(i)?
Is a taxpayer considered to be performing duties of a temporary nature for the purpose of subparagraph 6(6)(a)(i) ?

POSITION ADOPTÉE: Oui jusqu’au XXXXXXXXXX .Yes until XXXXXXXXXX.

RAISONS: Question de fait. Question of fact.

15 December 2014 Internal T.I. 2012-0445361I7 F - Remboursement de frais de déménagement

Summary Under
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a)
reimbursement of moving expenses not a taxable benefit if such moving expenses otherwise deductible under s. 62 which, in the case of multiple moves, can turn on whether there is ordinary residence at each location
Summary Under
Tax Topics - Income Tax Act - Section 2 - Subsection 2(1)
criteria for determining “ordinarily resides” under s. 62 (coterminous with “ordinarily resident” under s. 250(3))
Words and Phrases
ordinarily reside
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation
expenses re selling a Canadian home after a 2nd relocation abroad are non-deductible if no ordinary residence at 1st location abroad

PRINCIPALES QUESTIONS: Est-ce que le remboursement par un employeur de certains frais de déménagement engagés par un de ses employés est un avantage imposable en vertu de l’alinéa 6(1)a) dans une situation donnée?

POSITION ADOPTÉE: Commentaires généraux

RAISONS: Question de fait. Si les frais de déménagement remboursés auraient été déductibles par l’employé en vertu de l’article 62, n’eut été du remboursement par l’employeur, nous sommes généralement d’avis que le remboursement de ces frais ne constituerait pas un avantage imposable pour l’employé en vertu de l’alinéa 6(1)a).