Income Tax Severed Letters - 2024-04-03

Technical Interpretation - External

26 February 2024 External T.I. 2019-0813441E5 F - Frais de scolarité pour un cours par correspondance

Unedited CRA Tags
118.5
Summary Under
Tax Topics - Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a)
shipping and handling charges for correspondence-course books included in tuition

Principales Questions: Est-ce que les frais d’expédition et de manutention afférant à des livres ou du matériel similaire compris dans le coût d’un cours par correspondance constituent des frais de scolarité aux fins du calcul du crédit d’impôt pour frais de scolarité prévu au paragraphe 118.5(1)? / Whether shipping and handling fees related to the cost of books or similar material included in the cost of a correspondence course when the student is enrolled in such a course given by an eligible educational institution in Canada are tuition fees for the purposes of the tuition tax credit under subsection 118.5(1).

Position Adoptée: Généralement oui. / Generally yes.

Raisons: Le coût des livres ou du matériel similaire compris dans le coût d’un cours par correspondance auquel un étudiant est inscrit et qui est offert par un établissement d’enseignement au Canada qui est admissible inclut généralement les frais d’expédition et de manutention afférents à ces livres ou du matériel similaire. / The cost of books or similar materials included in the cost of a correspondence course when the student is enrolled in such a course given by an eligible educational institution in Canada generally includes shipping and handling related to these books or similar materials.

23 February 2024 External T.I. 2020-0852621E5 F - Pompier volontaire

Unedited CRA Tags
118.06 et 81(4)
Summary Under
Tax Topics - Income Tax Act - Section 118.06 - Subsection 118.06(1)
CRA position on “volunteer firefighter” remained in force following Bourgeois

Principales Questions:
Quelle est la position de l’ARC concernant la notion de « pompier volontaire » aux fins du paragraphe 81(4) et de l’article 118.06 suite au jugement rendu par la Cour du Québec dans la cause Bourgeois c. Agence du revenu du Québec?
What is the CRA’s position regarding the notion of "volunteer firefighter" for the purposes of subsection 81(4) and section 118.06 following the judgment issued by the Cour du Québec in the case Bourgeois c. Agence du revenu du Québec?

Position Adoptée:

1 March 2023 External T.I. 2023-0990821E5 - Definition of Designated Treaty Country

Unedited CRA Tags
5907(11) of the Income Tax Regulations
Summary Under
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(11)
an information exchange agreement between one of Canada’s treaty partner’s and its overseas territory did not render the latter a “designated treaty country”

Principal Issues: Whether a sub-jurisdiction (a territory, possession, department, dependency or area) of a sovereign state or jurisdiction, that is excluded from the territorial scope of a tax treaty, or a TIEA, that Canada has entered into with that sovereign state or jurisdiction, would be considered a “designated treaty country” under subsection 5907(11) of the Income Tax Regulations, by virtue of a bilateral agreement between the sub-jurisdiction and that sovereign state or jurisdiction.

Position: No.

Reasons: The territorial scope of a tax treaty or a TIEA must be determined in accordance with its negotiated terms and international law. An internal agreement between the other jurisdiction and one of its sub-jurisdictions would not be sufficient to extend the territorial application of the tax treaty or TIEA.

Technical Interpretation - Internal

6 April 2023 Internal T.I. 2022-0929731I7 - Articles 18(2) and (3) of the Canada-Italy Treaty

Unedited CRA Tags
Paragraph 212(1)(h); Articles 18(2) and 18(3) of the Canada-Italy Tax Treaty.
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 18
CPP and OAS payments treated as pensions and social security payments under the Canada-Italy Treaty
Words and Phrases
pension
Summary Under
Tax Topics - Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 5
CPP and OAS are normally considered pensions for Treaty purposes

Principal Issues: Where an individual resident in Italy receives CPP and OAS payments, how does Article 18 of the Canada-Italy Tax Treaty apply?

Position: Article 18(2) applies to the CPP payments and Article 18(3)(b) applies to the OAS payments.

Reasons: While both CPP and OAS payments are pensions for the purpose of the Canada-Italy Tax Treaty, only OAS payments are considered social security benefits under that treaty in accordance with paragraph (j) of the Protocol to the treaty.