Income Tax Severed Letters - 2020-10-21

Ministerial Correspondence

25 August 2020 Ministerial Correspondence 2020-0854171M4 - Canada caregiver credit & spousal income

Unedited CRA Tags
118(1)(a) and 118(1)(e)

Principal Issues: Why does a spouse’s net income limit an individual’s ability to claim the Canada caregiver credit as part of the spouse or common-law partner tax credit?

Position: Question of tax policy - referral to Finance

Reasons: The wording of paragraph 118(1)(a); 118(1)(e): for the top-up amount)

22 May 2020 Ministerial Correspondence 2020-0848401M4 - T5013 return due date extension

Principal Issues: Has the due date for the T5013 partnership information return for the 2019 taxation year been extended due to the COVID pandemic?

Position: Yes.

Reasons: Information on the extension of the due date for filing the T5013 information return for the 2019 taxation year can be found on the CRA website. The link to the website has been provided.

Technical Interpretation - Internal

29 July 2020 Internal T.I. 2020-0852071I7 - Clarification of views noted in 2019-0793481I7

Unedited CRA Tags
40(3.3), 40(3.4), 40(3.5), 95(2)(e)
Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(e) - Subparagraph 95(2)(e)(v) - Clause 95(2)(e)(v)(A) - Subclause 95(2)(e)(v)(A)(III)
a loss that was suspended under s. 40(3.5)(c)(i), could not be de-suspended by a DLAD winding-up of the CFA referenced under s. 40(3.5)(c)(i)
Summary Under
Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i)
DLAD winding-up of FA referenced in s. 40(3.5)(c)(i) caused it to apply to FA parent successor

Principal Issues: Whether a future liquidation of BCo into DCo would result in ACo's previously suspended capital loss becoming available.

Position: Possibly.

Reasons: The loss would become available pursuant to subparagraph 40(3.4)(b)(i) provided that subparagraph 95(2)(e)(v) does not apply.