Income Tax Severed Letters - 2019-02-06

Ruling

2018 Ruling 2018-0749491R3 - 55(3)(a) Reorganization

Unedited CRA Tags
55(2), 55(3)(a), 55(4), 85(1), "GRIP", 129(1), 186, 187.1, 191, 251(2)
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii)
spin-off of investment portfolio (but not rental property) by DC to 4 children’s respective TCs which father controls with special voting shares
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(4)
Parent reps that he will control the TCs for commercial reasons
Summary Under
Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b)
circularity avoided through intervening TC year end

Principal Issues: Did the reorganization meet the requirements of paragraph 55(3)(a)?

Position: Yes.

Reasons: Meets legislative requirements. Consistent with prior rulings involving similar issues.

2018 Ruling 2018-0778931R3 - 55(3)(a) Reorganization

Unedited CRA Tags
55(2), 55(3)(a), 55(4), 85(1), "GRIP", 129(1), 186, 187.1, 191, 251(2)

Principal Issues: Did the reorganization meet the requirements of paragraph 55(3)(a)?

Position: Yes.

Reasons: Meets legislative requirements. Consistent with prior rulings involving similar issues.

Technical Interpretation - External

21 November 2018 External T.I. 2017-0701181E5 - Taxable benefit - Employee relocation

Unedited CRA Tags
6(1)(a); 62(1); 248(1) "eligible relocation"

Principal Issues: Are moving expenses reimbursed to an individual by their employer taxable?

Position: Question of fact, depending on whether the move is an eligible relocation or is undertaken primarily for the benefit of the employer.

21 November 2018 External T.I. 2018-0775971E5 - XXXXXXXXXX to reduce student loan debt

Unedited CRA Tags
Various provisions were considered, such as 12(1)(x); 56(1)(n); 56(1)(r); 56(1)(u); and 56(2); and section 7300 of the Income Tax Regulations.

Principal Issues: Whether XXXXXXXXXX amount paid by the Government of XXXXXXXXXX on behalf of an individual to reduce their student loan debt would be taxable under the Income Tax Act.

Position: It is unlikely that the amount would be taxable.

Reasons: The amount does not appear to be income from a source or to be taxable under any provision of the Income Tax Act.

Technical Interpretation - Internal

28 September 2018 Internal T.I. 2018-0753261I7 - DTC and caregivers

Unedited CRA Tags
118.3(1.1)

Principal Issues: (i) Whether teachers and daycare providers would be considered primary caregivers for purposes of paragraph 118.3(1.1)(c)? and
(ii) Would time spent educating teachers and daycare providers be considered time spent administering therapy?

Position: (i) Generally, no.
(ii) No.

Reasons: (i) A teacher or daycare provider would not likely be considered a child's primary caregiver as required by paragraph 118.3(1.1).
(ii) Time spent educating individuals, such as teachers and daycare providers would not be considered as time spent receiving therapy, and would therefore be excluded.