Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2019-09-04 15 July 2019 External T.I. 2018-0747761E5 F - Application de 73(4.1) Income Tax Act - Section 73 - Subsection 73(4.1) - Paragraph 73(4.1)(c) negative ACB is not triggered under s. 73(4.1)(c)
2019-08-21 17 July 2019 External T.I. 2018-0777951E5 F - Avantage automobile Income Tax Act - Section 6 - Subsection 6(2) where 2 related employers, only a single benefit under the formula is calculated for each automobile
Income Tax Regulations - Regulation 200 - Subsection 200(3) where 2 related employer, ss. 6(1)(e) or (k) benefit can be reported by either employer
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) two related joint employers should agree on which of them will T4 an employee for the single s. 6(1)(e) or (k) benefit for the car provided by one of them to him
2019-08-14 10 June 2019 Internal T.I. 2019-0796221I7 F - Qualification d’un véhicule à titre de « voiture de tourisme » Income Tax Act - Section 248 - Subsection 248(1) - Automobile a passenger vehicle ceases to qualify as such when it commences to be used as a taxi given the s. 13(7)(b) deemed acquisition
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(b) s. 13(7)(b) applies when passenger vehicle converted to taxi use
2019-08-07 11 June 2019 External T.I. 2019-0795291E5 F - Tax on Split Income - 120.4(1) excluded amount Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business no TOSI tax applied to a dividend received from the surviving step-mother’s company
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) dividend received from widowed step-mother's company was not re a related business
2019-07-31 13 August 2018 Internal T.I. 2018-0763611I7 F - Subpar 152(4)(b)(iii) and FAPI Income Tax Act - Section 152 - Subsection 152(4.01) - Paragraph 152(4.01)(b) - Subaragraph 152(4.01)(b)(iii) reassessment of FAPI from marketable securities related to their previous contribution by the taxpayer
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) the extended reassessment period can apply to FAPI earned even before the 2018 Budget
12 June 2019 External T.I. 2019-0792011E5 F - TOSI definition excluded shares Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (c) two years were required to pass before proceeds from the sale of a related business could generate excluded share income for TOSI purposes
Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(d) income derived from related business included income from reinvesting sales proceeds from sale thereof in preceding year
2019-07-24 23 April 2019 Internal T.I. 2018-0750821I7 F - Revenu d’emploi d’un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 employee lease-out servicing activity does not give rise to exempt income if only connection to reserve is employer residence
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) employee leasing-out generally considered to be a separate business
2019-07-17 30 April 2019 Internal T.I. 2018-0757591I7 F - Part IV tax and trust Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a) a dividend received by a trust and immediately paid to a connected corporate beneficiary was taxed under Part IV if the connection ceased before the trust year end
Income Tax Act - 101-110 - Section 104 - Subsection 104(19) s. 104(19)-designated dividend not received as dividend until trust year end
7 March 2019 Internal T.I. 2018-0781511I7 F - Fabrication ou transformation Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits commercial printing or photocopying operations may not be M&P
Income Tax Regulations - Schedules - Schedule II - Class 29 printing or photocopying operations may no longer be manufacturing or processing
2019-07-10 4 June 2019 Internal T.I. 2018-0783441I7 F - Sale of land by a resident of Hong Kong Treaties - Income Tax Conventions - Article 13 Canadian land was not Treaty-exempt even where it did not generate income
2019-05-29 15 September 2017 External T.I. 2017-0696821E5 F - Amalgamation Income Tax Act - Section 87 - Subsection 87(1) - Paragraph 87(1)(a) receipt of cash on amalgamation did not preclude qualification under s. 87(1) [per Envision, 2013 SCC 48?]
Income Tax Act - Section 87 - Subsection 87(4) receipt of cash on amalgamation precluded rollover
2019-05-22 26 May 2016 External T.I. 2014-0527251E5 F - Interest Deductibility Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) interest was deductible on a note indirectly issued to satisfy a dividend
2019-05-08 18 April 2019 External T.I. 2017-0716451E5 F - Deduction in computing income of a trust Income Tax Act - 101-110 - Section 105 - Subsection 105(1) a distribution by a discretionary trust of a taxable capital gain in excess of the trust’s income could be a s. 105(1) benefit
Income Tax Act - 101-110 - Section 104 - Subsection 104(6) - Paragraph 104(6)(b) s. 104(6)(b) deduction cannot exceed net income
25 February 2019 External T.I. 2019-0793911E5 F - Triangular amalgamation and section 135.1 Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(s) - Subparagraph 87(2)(s)(ii) s. 87(2)(s) inapplicable to triangular amalgamation
Income Tax Act - Section 135.1 - Subsection 135.1(2) potential s. 131.1(2) income inclusion on triangular amalgamation
2019-05-01 28 March 2019 External T.I. 2019-0799241E5 F - Dépenses d'emploi (employé qui n'est pas à commission) Income Tax Act - Section 8 - Subsection 8(13) home office expenses generally cannot include property taxes or insurance
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) property taxes and insurance expenses of home office do not qualify
2019-04-10 2 April 2019 Internal T.I. 2016-0649821I7 F - Unclaimed superannuation or pension benefits Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) subsequent year’s payment of benefit to a previously-unidentified beneficiary is only income in that year as an “in lieu of” pension amount
General Concepts - Payment & Receipt amount received in Year 2 in lieu of pension benefit includes source deductions in Year 1
2019-04-03 27 March 2018 Internal T.I. 2017-0691941I7 F - Investissement frauduleux – Fraudulent Investment Income Tax Act - Section 152 - Subsection 152(4.2) s. 152(4.2) reversal of Ponzi interest inclusion must be applied for by 10th anniversary of the taxation year
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) Ponzi scheme investors can generally write off their reinvested interest income in the year the perpetrators are charged
General Concepts - Effective Date court order ab initio declaring loan void would eliminate interest income
2019-03-27 29 January 2019 External T.I. 2018-0780481E5 F - Tenir un établissement domestique autonome Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) can qualify as self-contained domestic establishment if no ownership but expense responsibility
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) “self-contained domestic establishment” entails expense responsibility
2019-03-13 12 February 2019 Ministerial Correspondence 2018-0741061M4 F - Revenu d’un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 pension income generated from off-reserve employment and received on reserve not exempted
2019-01-09 19 July 2018 External T.I. 2014-0551941E5 F - Déplacement effectué par un employé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) travel allowances of employees at accounting firms for travel on their audit engagements might be taxable
2018-12-12 5 October 2018 APFF Roundtable Q. 1, 2018-0768721C6 F - Procedure re: refund of excess w/h under Part XIII Income Tax Act - Section 227 - Subsection 227(5) withholding on interest that does not reflect the benefit of a subsequent s. 214(16)(b) designation can be recovered only on a s. 227(5) annual basis
Income Tax Act - Section 214 - Subsection 214(16) - Paragraph 214(16)(b) whether withholding on interest subject to the thin cap rules can take into account a subsequent s. 214(16)(b) designation
5 October 2018 APFF Roundtable Q. 2, 2018-0768901C6 F - Deemed dividend payable to trust beneficiary Income Tax Act - 101-110 - Section 104 - Subsection 104(24) deemed dividend realized by trust is deductible only if made irrevocably payable by the trustees in the year pursuant to trust deed terms

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