Income Tax Severed Letters - 2019-10-02

Technical Interpretation - External

23 August 2019 External T.I. 2018-0779191E5 - Crowdfunding Contribution by Employer

Unedited CRA Tags
a large employer contribution on compassionate grounds to an employee’s crowdfunding campaign to cover a child’s therapeutic requirements was not taxable

Principal Issues: Whether an employer's contribution to an employee's crowdfunding campaign raising funds to help with additional costs for caring for their child, who was born with XXXXXXXXXX, is a taxable benefit.

Position: Question of fact. Voluntary contributions received by an individual in their personal capacity are generally not required to be included in income.

Reasons: Law and CRA administrative policies.

7 August 2019 External T.I. 2019-0814161E5 - Application of Reasonable Return - TOSI

Unedited CRA Tags
shares subscribed for out of a joint bank account should not be treated as having been funded by a passive spouse in applying the reasonable return TOSI exception
broad construction of reasonable return exception would violate TOSI policy

Principal Issues: Whether a dividend allocated by a trust to an individual would be an exempt amount pursuant to subparagraph 120.4(1)(g)(ii) of that definition.

Position: Question of fact - but based on facts as presented - No.

Reasons: Legally the particular individual has not made a contribution to the business.

30 July 2019 External T.I. 2019-0802051E5 - Scholarships

Unedited CRA Tags

Principal Issues: Whether amounts paid to students in general interest music lessons and classes are considered scholarships or bursaries as contemplated by paragraph 56(1)(n).

Position: No.

Reasons: They are not paid to enable a student to pursue their education.