Income Tax Severed Letters - 2018-04-18

Ministerial Correspondence

21 March 2018 Ministerial Correspondence 2017-0729161M4 - Taxability of employee discounts

meals provided at cost not a taxable benefit

Principal Issues: Whether the Canada Revenue Agency has changed its longstanding administrative position that employee discounts on merchandise and subsidized meals for employees are generally not taxed.

Position: No. The longstanding position mentioned above is still valid.

5 March 2018 Ministerial Correspondence 2017-0726641M4 - Taxability of employee discounts

Unedited CRA Tags
6(1)(a)
employee discounts on merchandise are generally not taxed

Principal Issues: Whether the Canada Revenue Agency has changed its longstanding administrative position that employee discounts on merchandise and subsidized meals for employees are generally not taxed.

Position: No.

7 February 2018 Ministerial Correspondence 2017-0736681M4 - Mariners income

Principal Issues: Why a mariner who routinely leaves Canadian waters is required to pay income tax in Canada?

Position: Factual residents must report worldwide income for the entire year. General comments provided.

Technical Interpretation - External

21 February 2018 External T.I. 2017-0692561E5 - adoption expense tax credit

Unedited CRA Tags
118.01

Principal Issues: Are adoption expenses incurred at two different agencies eligible adoption expenses for the purpose of the adoption expense tax credit?

Position: No.

Reasons: Only expenses incurred at the agency that resulted in the adoption of a child and that meet all the other requirements of section 118.01 are eligible adoption expenses.

21 February 2018 External T.I. 2017-0696851E5 - Medical expense tax credit

Unedited CRA Tags
118.2

Principal Issues: Is the cost of prenatal classes an eligible medical expense for the purpose of the medical expense tax credit?

Position: Question of fact, but likely no.

Reasons: The amounts paid for such classes are not medical services as the classes do not appear to be diagnostic, therapeutic or rehabilitative services. They are also not for laboratory, radiological or other diagnostic procedures or services together with necessary interpretations.

29 January 2018 External T.I. 2017-0715041E5 - Prescribed Prize

Unedited CRA Tags
56(1)(n); 56(3); Regulation 7700

Principal Issues: Whether various awards/scholarship meet the definition of a prescribed prize under Section 7700 of the Income Tax Regulations:
1) XXXXXXXXXX
XXXXXXXXXX

Position: 1) Likely;
XXXXXXXXX No; appears to be a scholarship

Reasons: Legislation and previous positions

24 January 2018 External T.I. 2016-0645911E5 F - Avantage imposable - Stationnement

Unedited CRA Tags
6(1)a)
free parking benefit scaled to comparable-spot charge/ business-use exception excludes overtime use

Principales Questions: Dans une situation particulière, est-ce que le stationnement fourni par l’employeur est un avantage imposable? / In a given situation, is the parking lot provided by the employer a taxable benefit?

Position Adoptée: Oui, le stationnement offert afin de faciliter le travail à des heures irrégulières ou prolongées n’est pas un stationnement à des fins professionnelles. / Yes, parking lot offered to facilitate working irregular or prolonged hours is not a parking used for business purposes.

Raisons: Position de longue date. / Long-standing position.