Income Tax Severed Letters - 2019-12-04

Technical Interpretation - External

6 November 2019 External T.I. 2018-0739061E5 - Tax Treatment of Program Payments

Unedited CRA Tags
6(1); 6(6); 56(1)(n); 56(1)(r)

Principal Issues: The tax treatment and reporting requirements for payments provided under the XXXXXXXXXX.

Position: Likely taxable, unless 6(6) applies to exclude.

Reasons: See response.

19 October 2019 External T.I. 2019-0807801E5 - 6(16)(a) Disability Benefits

Unedited CRA Tags
6(16)(a)

Principal Issues: 1) Whether an employee meets the conditions of paragraph 6(16)(a); 2) Whether the full value of transportation benefits provided may be excluded from the employee's income.

Position: 1) Question of fact. 2) Question of fact, likely yes.

Reasons: The law.

Technical Interpretation - Internal

18 April 2019 Internal T.I. 2018-0753621I7 - Subsection 247(12)

Unedited CRA Tags
247(12), 212(2)
Summary Under
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(12)
transfer pricing income adjustment re sale to NR sister gave rise to taxable dividend
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 10
secondary adjustment benefit to a NR sister was a dividend for Treaty purposes
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 4
a s. 247(12) secondary-adjustment deemed dividend paid by Canco to an LLC sister qualified under Art. IV(6) for the 5% Treaty-reduced rate on dividends to its U.S. parent

Principal Issues: (1) whether a deemed dividend under subsection 247(12) is a dividend for purposes of Article X; (2) whether paragraphs IV(6) and (7) of the Canada-US Income Tax Convention would apply to a deemed dividend under subsection 247(12).

Position: (1) Yes; (2) Yes.

Reasons: Analysis in the letter.