Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
5 October 2018 APFF Roundtable Q. 3, 2018-0768841C6 F - Rollover under 73(1) and gifts to charities Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) the terms of an alter ego trust cannot permit charitable gifts before death
5 October 2018 APFF Roundtable Q. 4, 2018-0768891C6 F - Stock Dividend and Safe Income Income Tax Act - Section 55 - Subsection 55(2.3) shift in safe income to high-low prefs paid as stock dividend
Income Tax Act - Section 55 - Subsection 55(2.3) different effect of stock dividend of high-low preferred shares paid to Holdco and trust shareholders
Income Tax Act - Section 52 - Subsection 52(3) - Paragraph 52(3)(a) different effect of stock dividend of high-low preferred shares paid to trust and corporate shareholders
5 October 2018 APFF Roundtable Q. 5, 2018-0768761C6 F - Partage de la déduction accordée aux petites entreprises Income Tax Act - Section 125 - Subsection 125(8) use of personal holding companies precluded assignment
Income Tax Act - Section 125 - Subsection 125(7) - Designated Member - Paragraph (b) - Subparagraph (b)(i) Serviceco met the 3 conditions for being a designated member
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) dividend paid out of disability proceeds to fund purchase by survivor’s holdco might not have s. 55(2.1)(b) purpose
5 October 2018 APFF Roundtable Q. 6, 2018-0768771C6 F - Determination for a foreign partnership Income Tax Act - Section 152 - Subsection 152(1.4) CRA cannot make a partnership income or loss determination where the partnership has not T5013 filing obligation
Income Tax Regulations - Regulation 229 - Subsection 229(5) where no T5013 obligation, CRA will assess the partners directly within the s. 152(4) limitations
5 October 2018 APFF Roundtable Q. 7, 2018-0768781C6 F - Avantage en vertu d’un emploi Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) specificity needed re travel amounts paid re sabbatical stint
5 October 2018 APFF Roundtable Q. 8, 2018-0768791C6 F - Frais de repas Income Tax Act - Section 8 - Subsection 8(4) commissioned employees can deduct only 25% of the restaurant tab when they take out a client in the city
Income Tax Act - Section 67.1 - Subsection 67.1(1) s. 67.1(1) applies to client portion of restaurant tab even where s. 8(4) applies to employee
5 October 2018 APFF Roundtable Q. 9, 2018-0768801C6 F - Tax on Split Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (a) - Subparagraph (a)(i) portfolio investment company might qualify as having a business
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (g) - Subparagraph (g)(i) inactive spouse could receive excluded amount dividends from Holdco if its income was from an active business of reinvesting Opco dividends
5 October 2018 APFF Roundtable Q. 10, 2018-0768811C6 F - Related business and subsection 120.4(1) Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business - Paragraph (c) - Subparagraph (c)(i) - Clause (c)(i)(B) beneficial interests in discretionary trusts holding shares of a corporation with a mooted related business must be valued
5 October 2018 APFF Roundtable Q. 11, 2018-0768821C6 F - Tax on Split Income Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) dividends derived from stock portfolio of Holdco excluded because stock portfolio not a related business or not a business
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business - Paragraph (a) - Subparagraph (a)(i) stock market investing business of child's holdco not a related business as father not involved

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