Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2018-07-18 1 May 2018 External T.I. 2017-0709101E5 F - Travaux en cours Income Tax Act - Section 10 - Subsection 10(5) - Paragraph 10(5)(a) cost of professional practice WIP includes variable overheads and all related payroll costs, but not partner or shareholder-manager time
Income Tax Act - Section 10 - Subsection 10(4) - Paragraph 10(4)(a) WIP under a contingency fee basis generally has a nil value
Income Tax Act - Section 10 - Subsection 10(1) professionals' WIP excludes partner time but includes variable overhead
2018-06-27 6 April 2018 External T.I. 2018-0738871E5 F - Shareholder Income Tax Act - Section 15 - Subsection 15(2.6) s. 15(2) held in suspense until time period passes/s. 80.4(2) inclusion until s. 15(2) inclusion reverses such inclusion
Income Tax Act - Section 80.4 - Subsection 80.4(3) - Paragraph 80.4(3)(b) previous s. 80.4(2) inclusion is reversed when loan is included under s. 15(2)
2018-05-16 12 April 2018 External T.I. 2016-0640651E5 F - Swiss Pension Income Tax Act - Section 248 - Subsection 248(1) - superannuation or pension fund or plan Swiss vested benefits policy was a “superannuation or pension fund or plan”
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) a Canadian resident was not subject to Canadian tax on income accruing in a Swiss vested benefits policy
2018-05-09 26 March 2018 External T.I. 2017-0734381E5 F - Election paragraph 34(a) Income Tax Act - Section 34 a subsequently admitted partner benefits from a s. 34 WIP election made for a professional partnership’s 2017 year
Income Tax Act - Section 10 - Subsection 10(14.1) transitional rule applies to assignee partner
2018-05-02 9 April 2018 External T.I. 2017-0714381E5 F - Application de l'article 67.1 Income Tax Act - Section 67.1 - Subsection 67.1(1) hockey game tickets purchased by a hockey player recruiter are subject to s. 67.1
9 April 2018 Internal T.I. 2017-0731251I7 F - Activités mondaines Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) computation of the $150 cost per employee safe harbour for employee parties
2018-04-25 12 June 2017 Internal T.I. 2016-0679291I7 F - Régime d’assurance décès et mutilation accidentels Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e.1) the payment of group accident plan premiums by an employer for its benefit gave rise to taxable benefits
2018-04-18 24 January 2018 External T.I. 2016-0645911E5 F - Avantage imposable - Stationnement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) free parking benefit scaled to comparable-spot charge/ business-use exception excludes overtime use
2018-04-11 6 October 2017 APFF Roundtable Q. 1, 2017-0708971C6 F - Inactive Corporations & subs. 162(7) ITA Income Tax Act - Section 162 - Subsection 162(7) no penalty imposed where failure to file a nil T2 return
Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) requirement for Canco to file nil T2 returns, but no penalty
6 October 2017 APFF Roundtable Q. 2, 2017-0709001C6 F - T4A filing obligation Income Tax Act - Section 162 - Subsection 162(7) "temporary" policy for not applying penalties for failure to issue T4As to independent contractors
Income Tax Regulations - Regulation 200 - Subsection 200(1) penalty applicable but not necessarily applied for failure to complete fee box
6 October 2017 APFF Roundtable Q. 3, 2017-0709011C6 F - Désignation d’un bien comme résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (c) an individual accessing the “+1” rule on a principal residence disposition need not complete Form 2091
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) no loss of bonus year if standard designation
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) no loss of bonus year if standard designation
6 October 2017 APFF Roundtable Q. 4, 2017-0709021C6 F - CDA and Winding-up of a corporation Income Tax Act - Section 88 - Subsection 88(2) - Paragraph 88(2)(b) - Subparagraph 88(2)(b)(i) CRA will accommodate a s. 88(2)(b)(i) capital dividend election based on an estimated CDA balance
6 October 2017 APFF Roundtable Q. 5, 2017-0709031C6 F - T2054 - Short Cut Method Income Tax Act - Section 184 - Subsection 184(3) the “short-cut method” for short-circuiting a Pt III assessment is “generally" available
6 October 2017 APFF Roundtable Q. 6, 2017-0709041C6 F - Services PE Treaties - Income Tax Conventions - Article 5 there can be a services PE in Canada during the tail end of a project which ends in the first few months of a calendar year
6 October 2017 APFF Roundtable Q. 7, 2017-0709051C6 F - Dédommagement-annulation d'une offre d'achat Income Tax Act - Section 54 - Capital Property damages for breach of a purchaser's covenant were proceeds of a capital property
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A if damages relate to a particular asset of a business that was not disposed of, they will reduce the asset’s cost
6 October 2017 APFF Roundtable Q. 8, 2017-0719491C6 F - Production of NR4 forms Income Tax Regulations - Regulation 202 - Regulation 202(1) CRA requires NR4 reporting of withholding-exempt amounts
6 October 2017 APFF Roundtable Q. 9, 2017-0709071C6 F - Corporate Attribution Rules Income Tax Act - Section 74.4 - Subsection 74.4(2) a second freeze transaction by a family trust could be viewed as an indirect transfer by the original freezor
Income Tax Act - Section 74.5 - Subsection 74.5(5) unborn children and spouse not designated persons re freezer trust
6 October 2017 APFF Roundtable Q. 10, 2017-0709081C6 F - Election to treat excess as separate dividend Income Tax Act - Section 184 - Subsection 184(3) elected-upon amount is retroactively deemed as income even if it is still unpaid
Income Tax Act - Section 185 - Subsection 185(3) normal reassessment period starts running from date of Pt III assessment
6 October 2017 APFF Roundtable Q. 11, 2017-0709091C6 F - Transitional rules - Class 14.1 Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(d) - Subparagraph 13(38)(d)(iii) s. 13(38)(d)(iii) transitional election is irrelevant to ECP dispositions by a calendar-year partnership
6 October 2017 APFF Roundtable Q. 12, 2017-0709111C6 F - Dépenses relatives à un congrès Income Tax Act - Section 20 - Subsection 20(10) non-capital convention expenses incurred as business expense may be deducted without refererence to s. 20(10) - but “historically” convention expenses viewed as capital expenditures
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training convention expenses "historically" viewed as capital expenditures
6 October 2017 APFF Roundtable Q. 13, 2017-0709061C6 F - Calcul des frais pour droit d'usage Income Tax Act - Section 6 - Subsection 6(2) s. 6(2) standby charge based on leasing cost to the employer rather than the automobile’s cost to an affiliated purchaser
6 October 2017 APFF Roundtable Q. 14, 2017-0720321C6 F - GAAR & 21-year rule planning Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) Act does not contemplate any deferral beyond 21 years while property is directly in a discretionary trust or through a Canco
6 October 2017 APFF Roundtable Q. 15, 2017-0709141C6 F - Designation pursuant to paragraph 111(4)(e) Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) appreciated goodwill is now eligible for the s. 111(4)(e) step-up
6 October 2017 APFF Roundtable Q. 16, 2017-0709161C6 F - Résidence principale sur une terre agricole Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership - Paragraph (a) - Subparagraph (a)(i) a legally non-severable farm that is used both in farming and as a residence is one property for purposes of the s. 110.6 principal-use tests
Income Tax Act - Section 248 - Subsection 248(1) - Property non-severable farm is a single indivisible property
6 October 2017 APFF Roundtable Q. 17, 2017-0709171C6 F - Arm's length determination Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) "holder-by-holder" method applied to treat contingent s. 251(5)(b) rights as being exercised re all the other shareholders
6 October 2017 APFF Roundtable Q. 18, 2017-0721691C6 F - APFF 2017 - Question 18 Income Tax Act - Section 152 - Subsection 152(1) DTS update

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