Income Tax Severed Letters - 2020-09-16

Ministerial Correspondence

17 June 2020 Ministerial Correspondence 2020-0842721M4 - Authority to collect taxes under the Constitution

Unedited CRA Tags
91(3) of the Constitution Act, 1867; 92(2) of the Constitution Act, 1867 (giving provincial legislatures the power to make taxation laws); subsections 164(2) and 220(1) of the Income Tax Act.

Principal Issues: What is the legislative authority in the Constitution that gives the Canada Revenue Agency the legal right to collect taxes?

Position: See response.
REASON: See response.

2 June 2020 Ministerial Correspondence 2020-0841911M4 - Climate action incentive & carbon pricing revenues

Unedited CRA Tags
122.8

Principal Issues: Ministerial correspondence requesting data and information on measures through which the Government is paying back carbon-pricing revenues to families and businesses.

Position: See response.

Reasons: Response includes a referral to Environment and Climate Change Canada, as well as Finance Canada.

Technical Interpretation - External

10 July 2020 External T.I. 2020-0842461E5 - Egg freezing and storage

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

Principal Issues: Whether the costs paid for the egg freezing process, for the purpose of conceiving a child in the future by an individual who does not have a medical condition, are eligible medical expenses for the purposes of the medical expense tax credit.

Position: Yes.

Reasons: Legislation.

Technical Interpretation - Internal

31 August 2020 Internal T.I. 2020-0851811I7 - US Economic Impact Payment

Summary Under
Tax Topics - Income Tax Act - Section 3
“US EIP” payments received under the CARES Act are not income from a source

Principal Issues: Whether amounts received by a permanent resident of Canada under the US Economic Income Payment program would be included in income

Position: Likely no

Reasons: The amount is considered an advanced payment of a 2020 refundable tax credit, and therefore is likely not income from a source under the Income Tax Act.