Income Tax Severed Letters - 2019-03-20


2018 Ruling 2018-0765041R3 - Supplemental Ruling

Unedited CRA Tags
20(1)(c), 112, 245

Principal Issues: Changes to the facts and proposed transactions in advance income tax ruling.

Position: The rulings in files 2015-056473 and 2015-062209 will continue to be valid.

Reasons: The changes do not affect our conclusions.

Ministerial Correspondence

20 February 2019 Ministerial Correspondence 2019-0794131M4 - Taxation of Indigenous individuals

Unedited CRA Tags
2(1) and 81(1)(a) of the Income Tax Act; and 2(1) and 87(1)(b) of the Indian Act

Principal Issues: Why are Indigenous individuals not required to pay taxes as other individuals who are resident in Canada?

Position: Indigenous individuals pay taxes and are taxed in the same way as all other Canadian residents, except when the tax exemption provided in the Indian Act applies.

Reasons: Subsection 2(1) of the Income Tax Act and paragraph 87(1)(b) of the Indian Act.

30 January 2019 Ministerial Correspondence 2018-0790641M4 - Taxation of Artists

Principal Issues: CRA assessment procedures and guidance relating to the taxation of artists who receive public grants.

Position: General comments provided.

Reasons: General comments provided.

Technical Interpretation - External

28 February 2019 External T.I. 2018-0761161E5 - Reward Donation Program

Unedited CRA Tags
118.1, 9, 18, 67

Principal Issues: Two issues related to several variations on a gifting program involving the donation by individual customers of rewards received from merchants: (1) Whether individual customers would be considered to be the "donors" of amount directed to a registered charity. (2) Whether merchants would be able to deduct any rewards paid under the program in calculating income for tax purposes.

Position: General comments only.

Reasons: Determinations will depend on facts and legal effect of transactions entered into by the parties involved in the gifting programs.

24 January 2019 External T.I. 2017-0733511E5 - Ontario seniors’ public transit tax credit

Unedited CRA Tags
Ontario Taxation Act: section 103.0.1 and subsection 103.0.1(1); Federal ITA: 118.02(1)

Principal Issues: Whether the taxpayer is a ‘qualified Ontario transit organization’ that provides ‘Ontario public transit services’ for the purposes of the Ontario seniors’ public transit tax credit?

Position: No, see response.

Reasons: See response.

Technical Interpretation - Internal

5 November 2018 Internal T.I. 2018-0763791I7 - Embryo freezing costs

Unedited CRA Tags
118.2 (1), 118.2(2)(a), 118.2(2)(o), 118.2(2.2)

Principal Issues: Whether the costs paid to freeze an embryo, for the purposes of implanting into a surrogate, are eligible medical expenses for the purposes of the medical expense tax credit.

Position: Question of fact, but likely yes.

Reasons: Legislation.