Income Tax Severed Letters - 2019-08-14

Technical Interpretation - External

20 June 2019 External T.I. 2019-0797671E5 - Adoption expenses in respect of a stepchild

Unedited CRA Tags
118.01

Principal Issues: 1. Whether a step-parent wishing to adopt their common-law partner’s biological child, can claim the adoption expense tax credit in respect of that child. 2) Whether the child’s biological parent can claim adoption expenses incurred by their common-law partner to adopt their biological child.

Position: 1) Yes, if all the requirements in section 118.01 of the Act are met. 2) Likely not.

Reasons: 1) Based on the relevant provincial law, a step-parent is not precluded from adopting their step-child, and the adoption would be recognized as such for the purpose of section 118.01 of the Income Tax Act. 2) It is unlikely that an individual may be entitled to apply under provincial law for an adoption order in respect of their own biological child; therefore, it seems unlikely that an individual’s biological child would meet the definition of "eligible child" of the individual within the meaning of subsection 118.01(1).

4 June 2019 External T.I. 2019-0804001E5 - Subscription fees for a mobile app

Unedited CRA Tags
ITA: 118.2(2)(k), (m), (o), (t), section 5700 of the Regulations

Principal Issues: Whether the subscription fees for a mobile app qualify as a medical expense for purposes of the medical expense tax credit?

Position: No.

Reasons: See response.

Technical Interpretation - Internal

10 June 2019 Internal T.I. 2019-0796221I7 F - Qualification d’un véhicule à titre de « voiture de tourisme »

Unedited CRA Tags
13, 248
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile
a passenger vehicle ceases to qualify as such when it commences to be used as a taxi given the s. 13(7)(b) deemed acquisition
Summary Under
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(b)
s. 13(7)(b) applies when passenger vehicle converted to taxi use

Principales Questions: Est-ce qu’un véhicule acquis à des fins personnelles se qualifie toujours de « voiture de tourisme » lorsque, à un moment postérieur, il commence à être utilisé principalement pour servir de taxi? / Does a vehicle acquired for personal use still qualify as a "passenger vehicle" when, at a later time, it begins to be used primarily as a taxi?

Position Adoptée: Non / No

Raisons: Application de la Loi. / Application of the Act.

30 May 2019 Internal T.I. 2019-0806761I7 - Late filing of 88(1)(d) designation

Unedited CRA Tags
88(1)(d), 87(11), 152(3.1), 152(4)(b)(iii)
Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d)
late designation could be made for a statute-barred year that CRA was assessing within the expanded cross-border reassessment period
Summary Under
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii)
late designation policy coordinated with extended reassessment period

Principal Issues: Should CRA accept a late filed designation outside the normal reassessment period in the case after an audit action increased the bump room available at the time of amalgamation?

Position: Yes. As a fair administration of the policy, the designation should be allowed.

Reasons: See reasons discussed below.