Income Tax Severed Letters - 2016-10-05

Technical Interpretation - External

6 July 2016 External T.I. 2016-0633581E5 - Medical practitioners - behaviour analysts BCBA

Unedited CRA Tags
118.4(2); 118.2(2)(l.9); 118.2(2)(l.92)

Principal Issues: Whether a Board Certified Behaviour Analyst (BCBA) in Ontario is a medical practitioner for the purpose of the medical expense tax credit.

Position: No. See response.

Reasons: The requirement in subsection 118.4(2) is not met given that there is no provincial law that authorizes BCBAs to practise as such.

29 June 2016 External T.I. 2016-0642811E5 - attribution rules - spouses

Unedited CRA Tags
73(1), 74.5(11), 74.1(1), 74.2(1), 74.5(2), 82(2), 74.5(11), 20(1)(c)
individual purchasing property using funds provided from asset sales by spouse thereby receives a property transfer from spouse

Principal Issues: Whether the attribution rules apply in a particular situation.

Position: Question of fact. General comments provided.

Reasons: Attribution rules related to spouses found in ss 73(1), 74.1(1), 74.2(1), 74.5(2), 74.5(11).

27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB

Unedited CRA Tags
40(3.1), 40(3.11), 40(3.13), 53(2)(c)(v)
loan advances to a limited partner may give rise to immediate s. 53(2)(c)(v) grind
Words and Phrases
in lieu of on account of
loans by LP to partner potentially gave rise to negative ACB gain
retention of partnership profits not a contribution
assumption of loan can be contribution, but not retained profits

Principal Issues: 1. Whether subparagraph 53(2)(c)(v) would apply to the loans in the situation described in the letter? 2. Whether the limited partner would have a gain under subsection 40(3.1) in the situation described in the letter? 3. Whether subsection 40(3.13) would apply in the situation described in the letter?

Position: 1. Possibly, depending of the facts. 2. Possibly, depending on the facts. 3. In general no.

Reasons: 1. Subparagraph 53(2)(c) is broad and includes "any amount received ... in lieu of payment of". 2. 53(2)(c)(v), 40(3.11), 40(3.11). 3. No contribution of capital.

13 May 2016 External T.I. 2016-0635601E5 F - Dépenses de commandite

Unedited CRA Tags
18(1)a), 18(1)l), 67, 67.1
general overview of deductibility limitations re sponsorship expenses

Principal Issues: Quel est le traitement fiscal de certaines dépenses de commandite faites à un club de golf? / What is the tax treatment of some sponsorship expenses made to a golf club?

Position: Aucune. Commentaires généraux. / None. General comments.

Reasons: Question de fait / Question of fact

Technical Interpretation - Internal

21 July 2016 Internal T.I. 2016-0654751I7 - child care expense and SBJC

Unedited CRA Tags
63 of the Act, 96 of EIA

Principal Issues: 1) Can an employer of a nanny claim the employer’s share of the Canada pension plan contributions and the employment insurance premiums as child care expenses for the purposes of the child care expense deduction under section 63 of the Income Tax Act (“Act”)?
2) Is an employer in such a situation required to reduce the amount of child care expenses for any amount received as a small business job credit?

Position: 1) Yes, providing all conditions of section 63 are otherwise met.
2) Yes the small business job credit reduces the employer's share of the employment insurance premiums paid in respect of the nanny.

Reasons: 1) The definition of child care expense.
2) Under paragraph 63(1)(d), no deduction may be claimed for child care expenses for which any taxpayer is or was entitled to a reimbursement or any other form of assistance unless the reimbursement or assistance is included in a taxpayer's income and is not deductible in computing that taxpayer's taxable income.