Income Tax Severed Letters - 2021-08-11

Ministerial Correspondence

8 April 2021 Ministerial Correspondence 2021-0882911M4 - Home office expenses - temporary flat rate method

Unedited CRA Tags
8(1)(i)(iii)

Principal Issues: Whether an adult child working from their parents' home can claim the deduction for home office expenses using the temporary flat rate method?

Position: Yes, if they pay or contribute towards the payment of eligible home office expenses and meet the eligibility criteria.

Reasons: Criteria for the temporary flat rate method

26 February 2021 Ministerial Correspondence 2021-0881971M4 F - Traitement fiscal des prestations d’urgence ou de

Unedited CRA Tags
56(1)r)(iv)

Principales Questions: Quel est le traitement fiscal des différentes prestations d’urgence ou de relance économique liées à la COVID-19 provenant de l’ARC ou de Service Canada pour les résidents du Québec ? / What is the tax treatment of amounts of COVID-19 emergency or recovery benefits received from the CRA or Service Canada for Quebec residents?

Position Adoptée: Ces montants de prestations sont imposables en vertu de la LIR. / These benefit amounts are taxable under ITA.

Raisons: Positions antérieures. Previous positions

Technical Interpretation - External

23 April 2021 External T.I. 2020-0872371E5 - Sabbatical leave plan - Application of SDA rules

Unedited CRA Tags
6(1)(a) and (i), 6(11), 8(1)(o), 9(1), 12(1)(n.2), 20(1)(oo), Reg. 6801
offside sabbatical leave plan given length and timing of the sabbatical leave and the notional employer contributions
consequences of a sabbatical leave plan being offside the SDA rules
s. 8(1)(o) deduction when employer notional contributions to off-side sabbatical leave plan
s. 12(1)(n.2) inclusion to employer when employee forfeits entitlement to employer notional contribution to off-side sabbatical leave plan (which had generated s. 20(1)(oo) deduction)

Principal Issues: Whether a sabbatical leave plan (Plan) having certain features would be a salary deferral arrangement (SDA)

Position: Yes, the Plan would likely be an SDA; general comments provided with respect to the application of the SDA rules to the Plan.

Reasons: The Plan would not meet the requirements of paragraph 6801(a) of the Regulations, nor any other exclusion in the SDA definition in subsection 248(1) of the Act.

8 April 2021 External T.I. 2021-0876211E5 - KiwiS

Unedited CRA Tags
233.2(1), (4); Regulation 4801.1, 6803

Principal Issues: Whether a particular non-resident savings scheme is an "exempt trust" as defined in subsection 233.2(1) for purposes of the foreign reporting requirements?

Position: Likely not, but question of fact

Reasons: Based on the information provided, the particular scheme does not appear to satisfy the conditions in the definition of an “exempt trust”