Income Tax Severed Letters - 2021-08-18

Ruling

2021 Ruling 2020-0875341R3 - post-mortem pipeline

Unedited CRA Tags
84.1, 84(2), 245(2)

Principal Issues: 1. Does paragraph 84.1(1)(b) deem a dividend in the Proposed Transactions? 2. Does subsection 84(2) apply to the Proposed Transactions? 3. Does the GAAR apply to the Proposed Transactions?

Position: Unable to rule, no proposed transaction, request withdrawn. No. No.

Reasons: The Proposed Transactions are in accordance with the Act, relevant jurisprudence, and consistent with our previous positions.

Technical Interpretation - External

13 May 2021 External T.I. 2021-0879911E5 - METC - COVID-19 tests & hotel quarantine

Principal Issues: 1) Whether the cost of COVID-19 tests would be an eligible expense for the purpose of the medical expense tax credit (METC), when these tests are mandated as part of the travel restrictions to enter Canada. 2) Whether the cost of a 3-night mandatory hotel reservation or stay at a government-authorized hotel (while travellers await their COVID-19 test results) would be an eligible medical expense for the METC.

Position: 1) Likely yes, if the test is prescribed by a medical practitioner, and all the other requirements in paragraphs 118.2(2)(o) are met. 2) No.

Reasons: 1) The wording in paragraph 118.2(2)(o) and previous position in technical interpretation 2021-087601; 2) The cost of accommodations at a hotel may be eligible as part of travel expenses only if incurred for the purpose of obtaining medical services (subject to the conditions in paragraph 118.2(2)(h)). This is not the case in the present situation.

3 May 2021 External T.I. 2021-0876221E5 - Certified athletic therapists in Alberta

Unedited CRA Tags
118.2(2)(a); 118.4(2)

Principal Issues: Whether Certified athletic therapists in Alberta can be added to the list of authorized medical practitioners on the Canada Revenue Agency webpage for the purpose of the medical expense tax credit.

Position: No.

Reasons: To date, there does not appear to be a law that authorizes the practice of athletic therapy in Alberta.

16 February 2021 External T.I. 2020-0874981E5 - Proration during COVID-19 workplace restrictions

Unedited CRA Tags
81(1)(a)

Principal Issues: How to calculate the prorated exemption under Guideline 1 when a First Nation individual is no longer performing a portion of their employment duties on a reserve as a result of the COVID-19 pandemic and workplace restrictions.

Position: A First Nation individual can continue to calculate the prorated exemption based on the number of days or hours during which the individual would normally have worked on a reserve but was forced to work off reserve because of the COVID-19 pandemic.

Reasons: As an administrative matter and under the extraordinary circumstances, the CRA will consider the number of days or hours, as the case may be, during which a First Nation individual was forced to work off reserve only because of the workplace restrictions, to count towards the prorated exemption under Guideline 1.