Income Tax Severed Letters - 2019-05-15


2018 Ruling 2018-0784941R3 - Supplemental Ruling

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

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

Position: The rulings in files 2018-076504, 2015-056473 and 2015-062209 will continue to be valid.

Reasons: The change does not affect our conclusions.

2016 Ruling 2016-0645351R3 - Loss consolidation

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

Principal Issues: Whether related corporations can undertake a loss consolidation by utilizing an inter-company debt to create interest expense in a profitco and interest income in the lossco.

Position: Yes.

Reasons: The proposed transactions conform to our requirements for loss consolidation arrangements.

2015 Ruling 2015-0585681R3 - Cross-border spin-off butterfly

Unedited CRA Tags
20(24); 55(3)(b); 55(3.1); 245(2)

Principal Issues: Spin-off butterfly of assets from a corporation to another.

Position: Favourable rulings given.

Reasons: In compliance with the law and previous positions.

Technical Interpretation - External

3 April 2019 External T.I. 2019-0797491E5 - CCA for Equipment Used to Produce Biofuels

Unedited CRA Tags
Classes 43.1, 43.2, 53, subsections 1104(9) and 1104(13) of the Regulations; 2018 Fall Economic Statement

Principal Issues: Will equipment used to produce biofuels and chemicals from municipal solid waste qualify for an inclusion in Class 43.2 or Class 53?

Position: Depending on the particular circumstances, it may qualify for an inclusion in Class 53.

Reasons: Text of the Regulations and the 2018 Fall Economic.

28 March 2019 External T.I. 2019-0801391E5 - Assignment of structured settlement

Principal Issues: Whether a casualty insurer is permitted to assign the ownership of a structured settlement without changing the tax-free status of the periodic payments made to the claimant.

Position: The insurer may assign or transfer the obligation, provided the claimant consents.

Reasons: See response.