Income Tax Severed Letters - 2019-01-16

Ministerial Correspondence

8 November 2018 Ministerial Correspondence 2018-0779741M4 - Political contributions

Unedited CRA Tags
18(1)(n), 118.1, 127(3)

Principal Issues: Whether contributions to Ontario Municipal election candidates qualify as charitable contributions.

Position: No.

Reasons: Election candidates are not qualified donees. In addition, paragraph 18(1)(n) denies the deduction of political contributions.

7 November 2018 Ministerial Correspondence 2018-0780421M4 - Life insurance - refund of premium benefit

Unedited CRA Tags

Principal Issues: Whether an amount received as a refund of premium benefit with respect to an interest in a life insurance policy that has matured is included in income.

Position: Yes, to the extent that the proceeds of the disposition exceed the adjusted cost basis (ACB) of the interest in the policy.

Reasons: Subsection 148(1) includes in computing income the excess of the proceeds of the disposition over the adjusted cost basis on the disposition of an interest in a life insurance policy.

Technical Interpretation - External

10 December 2018 External T.I. 2017-0704951E5 - Rebate Donation Program

Unedited CRA Tags
Sections 110.1, 118.1, 149.1, and subsections 248(30) - (32), 9(1), 18(1), 67(1)

Principal Issues: 1) Can donors under the program claim a donation tax deduction under section 110.1 or a donation tax credit under section 118.1? (2) Can the merchants under the program claim a deduction for rebates paid to Cardholders?

Position: Unable to confirm. General comments provided.

Reasons: Questions of fact and general law.

28 September 2018 External T.I. 2017-0720601E5 - BC Home Renovation Tax Credit

Unedited CRA Tags
British Columbia Income Tax Act (BC Act), Part 11, Section 141

Principal Issues: Whether renovation costs for the installation of an automatic gate would qualify for the British Columbia Home Renovation Tax Credit for Seniors and Persons with Disabilities.

Position: Likely yes, depending on the facts. General comments given.

Reasons: The renovation and costs associated with the renovation need to meet the definitions of 'qualifying expenditure' and 'qualifying renovation' in section 141 of Part 11 of the BC Act.

Technical Interpretation - Internal

8 March 2018 Internal T.I. 2017-0724351I7 - Disability tax credit - lab tests as therapy

Unedited CRA Tags
lab testing not necessarily included in s. 118.3(1.1)(a.1)
appointment time for actual therapy not excluded

Principal Issues: Whether time spent for lab tests should be included in the time spent administering therapy for purposes of the disability tax credit.

Position: Question of fact.

Reasons: The activities required for the administration of Life Sustaining Therapy as described in paragraph 118.3(1)(a.1) would be determined in each specific case based on the effects of an individual’s impairments.