Income Tax Severed Letters - 2016-07-13

Ruling

2016 Ruling 2016-0632001R3 - Replacement Property

CRA Tags
44(1), 54
Summary Under
Tax Topics - Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a)
two properties to be used in expanded farming business will be replacement property for single former property
Summary Under
Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(2)
reference to "the" replacement property included 2 replacement properties

Principal Issues: Will New Farmland 1 and New Farmland 2, as the case may be, each be considered as a replacement property for the Old Farmland?

Position: Yes

Reasons: Based on the facts the requirements of section 44 are met.

2015 Ruling 2015-0601411R3 - Supplemental ruling- extension of time

Principal Issues: Request for an extension of time to implement the Proposed Transactions.

Position: Time to implement the Proposed Transactions extended to XXXXXXXXXX.

Reasons: Based on previous positions.

2015 Ruling 2015-0565151R3 - Supplemental Ruling

CRA Tags
85(1)(e.2), 84(4.1)

Principal Issues: Amendments to ruling number 2011-041581 ("Ruling").

Position: Ruling modified.

Reasons: Amendments do not affect the validity of the rulings given.

Technical Interpretation - External

3 June 2016 External T.I. 2016-0647621E5 F - Dividend designation from a trust - timing

CRA Tags
104(13), 104(19)
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19)
designation not effective until end of year
Summary Under
Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a)
dividend distributed by a trust to a connected corporation can be subject to Part IV tax due to the delayed implied effective date of s. 104(19) designations

Principal Issues: 1. When would a taxable dividend designated in respect of a beneficiary of a trust pursuant to subsection 104(19) be considered to have been received by the beneficiary?
2. Would the corporate beneficiary of the trust and the dividend payer be connected with respect to the dividend designated under subsection 104(19)?

Position: 1. At the time that is the end of the taxation year of the trust in which the dividend was received by the trust.
2. At the end of the taxation year of the trust, the corporate beneficiary and the dividend payer would not be connected corporations.

Reasons: 1. The conditions of subsection 104(19).
2. Paragraph 8 of IT-269R4.

Technical Interpretation - Internal

16 March 2016 Internal T.I. 2016-0626251I7 - children’s fitness tax credit

CRA Tags
118.03
Summary Under
Tax Topics - Income Tax Act - Section 122.8 - Subsection 122.8(1) - Eligible Fitness Expense
paraphrase
Summary Under
Tax Topics - Income Tax Regulations - Regulation 9400 - Subsection 9400(2)
paraphrase

Principal Issues: Whether various expenses are eligible fitness expenses for the children’s fitness tax credit in section 122.8 of the Income Tax Act (the “Act”).

Position: General comments provided.

Reasons: It is a question of fact. There is not enough detail to make a determination.