Income Tax Severed Letters - 2021-02-17

Technical Interpretation - External

19 November 2020 External T.I. 2020-0848111E5 F - Remboursement d'équipement de bureau pour le télétravail

Unedited CRA Tags
6(1)a)
Summary Under
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a)
aggregate reimbursement during COVID exceeding $500 for teleworking office furniture and computer is taxable benefit

Principales Questions: Est-ce que la position administrative énoncée dans l'interprétation technique 2020-0845431C6 s'applique également au remboursement d'équipement de bureau? / Is the administrative position established in technical interpretation 2020-0845431C6 also applicable to a reimbursement of home office equipment?

Position Adoptée: Oui / Yes

Raisons: Dans le contexte de la crise de la COVID-19, l'ARC est disposée à accepter un remboursement d'un montant n’excédant pas 500 $ pour l'achat d'équipement informatique personnel ou d'équipement de bureau comme étant principalement au bénéfice de l'employeur / In the context of the COVID-19 crisis, CRA is willing to accept a reimbursement of an amount not exceeding $500 for the purchase of personal computer equipment or home office equipment to be principally for the benefit of the employer

9 November 2020 External T.I. 2020-0846401E5 - Tax Treatment of Roth 401(k) and Roth IRA

Unedited CRA Tags
233.2; 233.3; 233.4; 248(1); Article XVIII of Canada-U.S. Treaty

Principal Issues: (1) What is the Canadian tax treatment of a Roth 401(k)? (2) Is a Roth 401(k) a “foreign retirement arrangement”? (3) Can a Canadian contribution to a Roth IRA be rectified or reversed? (4) What are the foreign reporting requirements for a Roth IRA?

Position: (1) Follows the underlying 401(k) plan. (2) No. (3) No. (4) Comments provided.

Reasons: (1) a Roth 401(k) is simply a feature of the underlying 401(k) of which it is a part. (2) Only traditional IRAs are prescribed to be a foreign retirement arrangement. (3) There are no provisions in the Act or the Canada-U.S. income tax treaty to reverse or rectify a Canadian contribution. (4) See below.

23 June 2020 External T.I. 2020-0848441E5 F - SSUC - Entité déterminée et institution publique

Unedited CRA Tags
149(1)(a), 149(1)(b), 149(1)(c), 149(1)(d) to (d.6), 149(1.1), 125.7(1), 125.7(2)
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c)
regional county municipalities are municipalities
Words and Phrases
municipality
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity
an entity may be an eligible entity for CEWS purposes if it is not a public institution

Principales Questions: Est-ce que l'entité est admissible à la SSUC? / Is the entity eligible for the CEWS?

Position Adoptée: Question de fait / Question of fact.

Raisons: Ça dépend si l'entité est une institution publique ou non. Des commentaires généraux sont fournis pour aider à déterminer si l'entité est une institution publique ou non. / It depends if it is a public institution or not. General comments are provided to help determine if the entity is a public institution or not.

Technical Interpretation - Internal

12 February 2021 Internal T.I. 2020-0867841I7 - Canada Recovery Benefits - Indian Act Exemption

Unedited CRA Tags
81(1)(a); section 87 of the Indian Act, Canada Recovery Benefits Act

Principal Issues: Will the Recovery Benefits received by a First Nation Individual be exempt from tax under section 87 of the Indian Act?

Position: The Recovery Benefits you receive will be treated in the same way as the total income that entitled you to these benefits

Reasons: The Recovery Benefits are available to workers who earned a minimum total income of $5,000 (before taxes) from one or more of the following sources; employment income, self-employment income and/or provincial or federal benefits related to maternity or paternity leave. This total income includes income exempt under section 87 of the Indian Act. We feel that the taxability of the income that entitled the recipient to the benefits is a strong connecting factor when determining whether the benefits received are sufficiently connected to a reserve for the purposes of section 87 of the Indian Act.