Income Tax Severed Letters - 2023-02-15

Ruling

2022 Ruling 2021-0920791R3 - Butterfly Reorganization

Unedited CRA Tags
55(2), 55(3)(b)

Principal Issues: Will the exception to subsection 55(2) in paragraph 55(3)(b) apply to the proposed transactions?

Position: Yes.

Technical Interpretation - Internal

13 January 2023 Internal T.I. 2022-0956531I7 - Tax treatment of tuition reimbursements

Unedited CRA Tags
Definitions in 118.6(1); 56(1)(n); 56(3); 56(3.1)

Principal Issues: Whether tuition reimbursements paid by the Government of Manitoba to students in recognized early childhood education programs that lead to ECE II and ECE III certification, would be taxable in the hand of recipients.

Position: The reimbursements would be included in the recipients' income under paragraph 56(1)(n) to the extent that the amount exceeds the recipient’s scholarship exemption.

Reasons: The wording in 56(1)(n).

8 September 2022 Internal T.I. 2022-0947811I7 - DTC transfer - meaning of dependent for support

Unedited CRA Tags
118.3(2); 118(1)(d); 118(6)

Principal Issues: The extent of support that is required for the purpose of determining a supporting individual's eligibility for the transfer of the unused portion of the disability amount from an eligible person with a disability (PWD).

Position: General comments and guidelines given. Namely, an individual’s contributions toward a PWD’s basic necessities of life (e.g., in the form of gifts or hosting the PWD during visits) would not, in and of themselves, constitute support or entitle that individual to the DTC transfer; the individual must be able to prove that the PWD must rely on these contributions for their subsistence because their income is insufficient to fully meet their basic needs.

Reasons: Previous positions and the jurisprudence.