Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2020-03-04 11 October 2019 APFF Roundtable Q. 1, 2019-0819401C6 F - Interaction between par. 84.1(1)(b) and 129(1(a) Income Tax Act - Section 129 - Subsection 129(1) reversal of position that s. 84.1(1)(b) dividends do not generate dividend refunds
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) s. 84.1 dividend can generate dividend refund
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(z) s. 20(1)(z) applies notwithstanding s. 18(1)(a) but is subject to source rule in s. 20(1) preamble
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) lease termination payment received by tenant was referable to complete period of holding of (annually renewed) leasehold interest
Income Tax Act - Section 54 - Principal Residence lease termination payment received by tenant was eligible for principal residence exemption
Income Tax Act - Section 20 - Subsection 20(1) s. 20(1)-preamble source rule applied
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (c) reporting of principal residence exemption when the residence had been expanded from 1 to 2 duplex units
Income Tax Act - Section 45 - Subsection 45(3) method for making s. 45(3) election where conersion of duplex
Income Tax Act - Section 43 - Subsection 43(1) allocation of ACB between units in a duplex
11 October 2019 APFF Roundtable Q. 5, 2019-0812641C6 F - Professional fees incurred in the context of a litigation with CRA Income Tax Act - Section 60 - Paragraph 60(o) - Subparagraph 60(o)(i) s. 60(o)(i) generates professional fee deductibility from the moment that CRA informs that there is an audit
11 October 2019 APFF Roundtable Q. 6, 2019-0812651C6 F - CDA and wind-up of a subsidiary Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) IT-126R2 applicable in determining when CDA of sub is added to parent’s CDA
Income Tax Act - Section 88 - Subsection 88(1) IT-126R2 applied re tiiming of addition of the wound-up subsidiary’s CDA
11 October 2019 APFF Roundtable Q. 8, 2019-0821311C6 F - APFF 2019 Q.8: Surplus Documentation Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) failure to prepare surplus accounts will preclude a late-filed Reg. 5901(2)(b) election
Income Tax Act - Section 230 - Subsection 230(1) taxpayer must prepare adequate records to support surplus computations
11 October 2019 APFF Roundtable Q. 9, 2019-0812781C6 F - Acquisition of control and trusts Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(i) - Subparagraph 256(7)(i)(ii) discretion of a spousal trust’s trustees to encroach on capital in favour of the spouse likely offends s. 256(7)(i)(ii)
11 October 2019 APFF Roundtable Q. 10, 2019-0812691C6 - Consolidated safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) negative safe income of a subsidiary need not reduce the SIOH of the parents’ shares
11 October 2019 APFF Roundtable Q. 11, 2019-0812701C6 F - Paragraph 251(5)(b) and convertible debenture Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) debenture with a contingent conversion right and non-participating conversion ratio entailed loss of CCPC status
11 October 2019 APFF Roundtable Q. 12, 2019-0812711C6 - Part IV Income Tax Act - Section 186 - Subsection 186(2) two 50% shareholders of two corporations likely acting in concert to produce connectedness
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) two 50% shareholders of two corporations likely acting in concert to produce connectedness
11 October 2019 APFF Roundtable Q. 13, 2019-0812721C6 F - Late-Filed CDA Election Income Tax Act - Section 83 - Subsection 83(3) directors can authorize a late capital dividend election after the dividend declaration
11 October 2019 APFF Roundtable Q. 15, 2019-0812741C6 F - TOSI and interest income earned by a trust Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (d)(i) beneficiaries of a family trust can benefit from the excluded debt exception from the TOSI rules
Income Tax Act - 101-110 - Section 108 - Subsection 108(5) - Paragraph 108(5)(a) source character of trust income maintained in the absence of s. 108(5)(a) appplication
11 October 2019 APFF Roundtable Q. 16, 2019-0812751C6 F - 74.4(2) and 120.4 interaction Income Tax Act - Section 74.4 - Subsection 74.4(2) main purpose test can still apply even where designated persons are subject to TOSI
Income Tax Act - Section 74.4 - Subsection 74.4(2) - Paragraph 74.4(2)(g) only s. 74.4(2)(g) provides relief from the joint application of the TOSI and s. 74.4(2) rules
11 October 2019 APFF Roundtable Q. 17, 2019-0812761C6 F - Entreprise - Business Income Tax Act - Section 248 - Subsection 248(1) - Business Stewart as the leading case on “business”
11 October 2019 APFF Roundtable Q. 18, 2019-0812771C6 F - TOSI Actively Engaged Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Business - Paragraph (a) loss of excluded business exception when specified individual went on extended mat leave or disability
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Reasonable Return potential application of reasonable return exception where on mat leave or disability
11 October 2019 APFF Roundtable Q. 19, 2019-0825031C6 F - Service téléphonique réservé
2020-02-26 23 January 2020 External T.I. 2019-0796121E5 F - Déduction pour résidence des membres du clergé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) s. 8(1)(c) does not entail any home office requirement
2020-02-05 14 January 2020 Internal T.I. 2018-0785991I7 F - Subsection 86.1(2) Income Tax Act - Section 86.1 - Subsection 86.1(2) s. 86.1(2)(c)(i) references central management and control test/tracking shares satisfied s. 86.1(2)(a)
Income Tax Act - Section 248 - Subsection 248(1) - Common Share tracking shares were common shares
2020-01-08 12 November 2019 External T.I. 2019-0822161E5 F - T5008 Statement of Securities Transactions Income Tax Regulations - Regulation 230 - Subsection 230(1) - Sale a contribution of shares to a TFSA is not a “sale” for Reg. 230 purposes
Income Tax Regulations - Regulation 230 - Subsection 230(2) transfer of listed shares from taxable brokerage account to individual’s TFSA did not generate T5008 reporting requirement
2019-12-18 11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 2, 2019-0811881C6 F - HBP/HBTC - Death of a spouse Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) widow who had resided in the home of her deceased husband could access the HBP program to purchase a condo or acquire his home from estate
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) widow who had resided in the home of her deceased husband could access the first-time home buyer’s credit
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 4, 2019-0813421C6 F - TFSA - Survivor Payment - Decrease in FMV Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) survivor payment equals amounts paid under the TFSA to the estate provided the survivor receives at least that amount as TFSA beneficiary
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Unused TFSA Contribution Room - Paragraph (b) - Element D diminution in TFSA property in executors' hands reduces exempt contribution
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 5, 2019-0820901C6 F - TFSA Exempt Contribution - Timing of contribution Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (c) an exempt contribution to a TFSA can only be made as of right no more than 30 days before the survivor payment was received from an estate
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 6, 2019-0813451C6 F - TFSA - Bequest and disclaimer Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) transfer of TFSA to surviving spouse because of daughter’s renunciation occurred as a consequence of the deceased’s death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(b) transfer of TFSA to survivor on renunciation of bequest thereof occurred as a consequence of death

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