Income Tax Severed Letters - 2022-07-27

Technical Interpretation - External

2 June 2022 External T.I. 2020-0838061E5 - Crowdfunding

Unedited CRA Tags
3(1), 6(1), 9(1)

Principal Issues: What is the tax treatment of amounts received through crowdfunding?

Position: Question of fact, and will depend whether the amounts are received as a gift or whether the amounts will constitute income from a source.

Reasons: Law.

28 February 2022 External T.I. 2019-0797241E5 - Qualifying students

Unedited CRA Tags
118.6; section 203 of the Regulation

Principal Issues: Whether a designated educational institution should issue T2202’s to students for months they are attending co-op work terms or practical training in teaching and clinical services programs?

Position: Question of fact.

Reasons: CRA's longstanding policy has been that students in co-op placements and internships would likely only be regarded as being enrolled as a full-time students during those months in which the designated educational institution is attended. All factors would need to be reviewed for any particular program to determine if the requirements of the definition of qualifying student and related definitions are met, such as whether the amount of hours required for instruction or work is met as described in the Folio.

Technical Interpretation - Internal

6 December 2021 Internal T.I. 2019-0792581I7 - 152(1.1) Notice of Determination

Unedited CRA Tags
152(1.1), (1.2)
Summary Under
Tax Topics - Income Tax Act - Section 152 - Subsection 152(1.1)
CRA must issue a requested notice of determination of loss arising from a taxpayer-requested adjustment provided that the adjustment is only partially accepted

Principal Issues: Is the CRA required to issue a subsection 152(1.1) Notice of Determination upon the filing of a tax return or when a taxpayer has requested amendments to a return that are fully denied, partially accepted, or fully accepted by the CRA?

Position: A taxpayer cannot receive a subsection 152(1.1) Notice of Determination upon filing an income tax return where the CRA agrees with the amount of the reported loss.
In the case of amendments requested to a return of income, a taxpayer can receive a subsection 152(1.1) Notice of Determination, after having requested one, only if the requested amendments are only partially accepted by the CRA.

Reasons: This response is determined based on previous Income Tax Rulings documents, as well as jurisprudence.
In our view, the taxpayer’s reported amount would be the amount on the return as filed or, if requested amendments are fully accepted by the CRA, the amended amount on the return. Where requested amendments are fully denied or fully accepted, the loss ascertained by the Minister and the taxpayer’s reported amount would not be different. A difference would arise only if the taxpayer’s requested amendments were only partially accepted by the CRA.