Income Tax Severed Letters - 2026-08-26

Ruling

2026 Ruling 2025-1081861R3 F - Post-mortem planning - Pipeline

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

Principal Issues: Post-mortem planning.

Position: Favourable ruling provided.

Reasons: Wording of the Act and previous positions.

2025 Ruling 2025-1063831R3 - EIFEL Ruling

Unedited CRA Tags
LEGISLATIVE REFERENCE: 18.2(1)
Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses
financing cost embedded in receiving a prepayment of the forward price under a forward constituted IFE

Principal Issues: Whether the Financing Cost Losses are included in the definition of the IFE, and therefore, the IFE of the Taxpayer, whereas the Sale Losses are not an amount described in paragraph (e) of variable “A” of the definition of the IFE in subsection 18.2(1) and should therefore not be included in the IFE of the Taxpayer under that provision.

Position: Yes.

Reasons: Consistent with the context and purpose of the EIFEL rules.

Technical Interpretation - External

20 May 2026 External T.I. 2026-1092981E5 - XXXXXXXXXX Class Action Settlement

Unedited CRA Tags
3, 12(1)(c), 56(1)(u)

Principal Issues: Whether amounts received pursuant to the XXXXXXXXXX Class Action Settlement are required to be included in the computation of income of a recipient for the purpose of calculating income-tested benefits.

Position: Likely not.

Reasons: Amounts received pursuant to the XXXXXXXXXX Class Action Settlement appear to be received as damages for personal injury. Amounts received as damages for personal injury will not be income from a source and, as such, will not be included in the computation of income and will not be taxable under the Income Tax Act. Therefore, the receipt of such amounts will not impact the calculation of the income-tested benefits of the recipient.

Technical Interpretation - Internal

1 April 2026 Internal T.I. 2025-1050651I7 F - Application du paragraphe 50(1) LIR - Choix relatif aux créances devenues irrécouvrables

Unedited CRA Tags
50(1)
Summary Under
Tax Topics - Income Tax Act - Section 50 - Subsection 50(1)
s. 50(1) elections must be made on a debt-by-debt basis

Principal Issues: Le choix prévu au paragraphe 50(1) de la Loi doit-il être exercé séparément pour chaque créance devenue irrécouvrable ou peut-il être exercé une seule fois pour l'ensemble des créances détenues par un contribuable? / Must the election under subsection 50(1) of the Income Tax Act be made separately for each bad debt, or can a single election apply to all bad debts held by a taxpayer?

Position: Le choix doit être exercé séparément pour chaque créance. / The election must be made separately for each debt.

Reasons: Le texte du paragraphe 50(1) LIR se rapporte à une créance devenue irrécouvrable, ce qui implique une analyse factuelle créance par créance. / Subsection 50(1) ITA applies to a debt that has become uncollectible, requiring a factual determination for each debt.