Income Tax Severed Letters - 2022-06-01

Ruling

2021 Ruling 2021-0879141R3 - Advance Income Tax Ruling - XXXXXXXXXX Butterfly

Principal Issues: Advance Income Tax Ruling - XXXXXXXXXX Butterfly.

Position: See below.

Reasons: See below.

Technical Interpretation - External

18 May 2022 External T.I. 2019-0801531E5 - Identity Theft Shield Premiums

Unedited CRA Tags
6(1)(a), 18(1)(a), 18(1)(h),

Principal Issues: Do employer paid premiums for identity theft protection services represent a deductible expense and would they be considered a taxable benefit to employees?

Position: Question of fact.

Reasons: In the absence of additional information suggesting a heightened risk of identity theft for employees or a link between the personal information monitored and an employer’s business, this particular employer-paid plan would appear to provide an economic advantage that is primarily for the benefit of the employee.

22 April 2022 External T.I. 2021-0915651E5 - XXXXXXXXXX Long-term care facilities

Unedited CRA Tags
56(1)(u); Regulation 233(1), 233(2)

Principal Issues: Whether XXXXXXXXXX is required to issue T5007's in respect of reduced accommodation charges, XXXXXXXXXX payments and personal use allowance (PUA) payments made for residents of long-term care facilities?

Position: Reduced accommodation charges - no, XXXXXXXXXX Payments - yes, PUA payments – yes.

Reasons: The reduced accommodation charges are likely in respect of medical expenses and would fall under the exception in paragraph 233(2)(a) of the Regulations, the XXXXXXXXXX and PUA payments are social assistance payments that do not meet any of the exceptions listed in subsection 233(2) of the Regulations.

Technical Interpretation - Internal

12 April 2022 Internal T.I. 2020-0866851I7 - Tax treatment EI rcvd by First Nations individual

Unedited CRA Tags
81(1)(a) and 56(1)(a) of the Income Tax Act, 87 of the Indian Act, and 153.17(1) of the EIA

Principal Issues: Would EI benefits received by a First Nations individual, who met the minimum requirement of 120 hours of insured work and was granted a one-time credit of 300 insured hours to make the individual eligible for EI, be exempt from tax under section 87 of the Indian Act?

Position: The EI benefits received by the individual will be exempt from tax under paragraph 81(1)(a) of the Act and section 87 of the Indian Act if the employment income arising from the actual qualifying hours was exempt from tax under the Indian Act.

Reasons: The one-time credit made the individual eligible for the EI benefits under Part I of the EIA but it does not have any impact on how the EI benefits are calculated under Part I of the EIA.