Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2022-05-11 2021 Ruling 2020-0865901R3 F - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline involving a deferred distribution of portfolio assets from the corporation held on death
2022-04-20 16 July 2020 Internal T.I. 2019-0817271I7 F - Indemnités reçues à la suite de la négociation Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (e) compensation for loss of value to lands left after the government agreed to purchase a portion thereof, would constitute proceeds of disposition of such remainder
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) compensation paid to land owners for their restoration of the portion of their lands not sold to the government would be a s. 12(1)(x) receipt
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(f) compensation for damages to depreciable property would be included under s. 12(1)(f) rather than under proceeds of disposition, but the related repaid expenses would be deductible
2020 Ruling 2020-0848081R3 F - Subsection 104(4) and pipeline transaction Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction implemented after a discretionary inter vivos trust voluntarily realizes capital gains on its 21st anniversary
2022-04-06 2017 Ruling 2017-0696791R3 F - Reduction of PUC/capital Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on money borrowed by Subco for distribution of share-capital account to its parent is deductible if the Subco property continues generating business income
Income Tax Act - Section 51 - Subsection 51(1) s. 51(1) will apply where convertible note, that was issued as boot, will be converted to shares
2019 Ruling 2017-0696792R3 F - Internal reorganization
7 January 2022 External T.I. 2020-0866751E5 F - CEWS and government financial assistance Income Tax Act - Section 125.7 - Subsection 125.7(4) government assistance based partly on payroll levels would not be qualifying revenue if normal accounting practice would be to contra payroll expense
Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Revenue government assistance that under normal accounting practice was applied to reduce recorded expenses would not be qualifying revenue
2022-03-16 23 June 2020 External T.I. 2020-0847641E5 F - SSUC - Entité déterminée et institution publique
4 May 2021 External T.I. 2020-0853361E5 F - Frais d'asepsie / asepsis fees Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) additional dentists’ charges for COVID precautions qualified
1 June 2021 Internal T.I. 2020-0858471I7 F - Paiement forfaitaire rétroactif admissible Income Tax Act - 101-110 - Section 110.2 - Subsection 110.2(1) - Qualifying Amount - Paragraph (a) - Subparagraph (a)(i) pay equity awards agreed to consensually did not qualify
2022-02-23 5 November 2021 External T.I. 2019-0812631E5 F - Allocation canadienne pour enfants et garde partagée Income Tax Act - Section 122.6 - Shared-Custody Parent - Paragraph (b) Lavrinenko interpretation regarding a shared-custody parent was legislatively overruled retroactively
2021 Ruling 2020-0874931R3 F - Post-mortem Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline using a joint Newco of children and estate
Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) replacement of an executor resulted in an acquisition of control of subsidiaries
2022-02-09 2021 Ruling 2021-0894621R3 F - Paiement à un membre qui quitte Income Tax Act - Section 3 - Paragraph 3(a) lump-sum assistance paid to a member of a religious community, who had taken vows of poverty, on his return to secular life, is not income
2022-01-26 26 October 2021 External T.I. 2019-0800111E5 F - Psychothérapeutes du Québec, professionnels de la Income Tax Act - Section 118.4 - Subsection 118.4(2) Quebec psychotherapists added to list of authorized medical practitioners
2022-01-05 18 November 2021 External T.I. 2021-0917841E5 F - Traitement fiscal d’un revenu d’une emphytéose Income Tax Act - Section 248 - Subsection 248(1) - Disposition the granting of an emphyteusis is a part disposition of property rather than a lease
2021-12-08 2020 Ruling 2020-0844081R3 F - Rollout of property to beneficiaries Income Tax Act - 101-110 - Section 107 - Subsection 107(2) s. 107(2) applicable to distribution of trust’s shares to beneficiaries followed by an immediate s. 85(1) roll into holdco controlled by father
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) a trust should distribute shares of an Amalco whose predecessor had received shares as beneficiary of another discretionary family trust before the latter’s 21-year anniversary
2021-11-24 2020 Ruling 2020-0840631R3 F - Purpose Test in Subsection 55(2) Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) no application of s. 55(2) because ss. 88(2)(b) and 84(2) dividends did not significantly reduce capital gains
Income Tax Act - Section 88 - Subsection 88(2) - Paragraph 88(2)(b) deemed ss. 88(2)(b) and 84(2) dividends on winding-up into three Holdcos
2021-11-17 7 July 2021 External T.I. 2020-0848251E5 F - Donation and CEWS qualifying revenue Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Revenue - Paragraph (c) gifts received by a registered charity are qualifying revenue
2021-10-13 2020 Ruling 2020-0848231R3 F - Rollover of RRSP proceeds to a lifetime benefit trust. Income Tax Act - Section 60.011 transfer of RRSP proceeds to a lifetime benefit trust
Income Tax Act - Section 75.2 annuity purchased by Hansen trust included in income of beneficiary rather than of Hansen trust
2021-09-08 1 June 2021 External T.I. 2020-0865201E5 F - Sale of property for POD less than FMV Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) sale of 2 properties by 50-50 corp at a knowing undervalue to the respective shareholders’ own corporations likely was non-arm’s length
Income Tax Act - Section 56 - Subsection 56(2) sale of 2 properties by 50-50 corp at a knowing undervalue to the respective shareholders’ own corporations could engage s. 56(2)
2021-09-01 21 June 2021 External T.I. 2019-0815871E5 F - 83(2)b) and cost Income Tax Act - Section 54 - Adjusted Cost Base promissory note issued in satisfaction of a capital dividend has full cost
Income Tax Act - Section 52 - Subsection 52(1) s. 52(1) is unnecessary to establishing full cost for a note transferred in satisfaction of a capital dividend
2021-06-23 4 February 2021 Internal T.I. 2020-0872991I7 F - Revenu d'emploi d'un Indien en travail à domicile Other Legislation/Constitution - Federal - Indian Act - Section 87 Indian working from home office on reserve during COVID generated exempt employment income
2021-06-16 5 March 2021 External T.I. 2017-0713041E5 F - Allocation pour usage d’un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) it can be acceptable to cap the kilometres for which a car allowance is paid
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) unreasonably low allowance may be taxable
17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) leasing contract cannot be recharacterized as a secured loan funding an acquisition of depreciable property
Income Tax Act - Section 68 lease payments for vehicle lease with bargain purchase option are allocated between ACB of option and deductible lease payments
Income Tax Act - Section 49 - Subsection 49(3) a portion of the lease payments under a lease with a bargain purchase option recharacterized as consideration for the option
Income Tax Act - Section 13 - Subsection 13(5.2) acquisition of leased vehicle pursuant to bargain purchase option followed by sale of vehicle could engage s. 13(5.2)
Income Tax Act - Section 16.1 - Subsection 16.1(1) truck tractor is prescribed property
General Concepts - Substance lease payments, but not the lease itself, could be recharacterized
23 February 2021 External T.I. 2018-0769891E5 F - 125(7) "revenu de société déterminé" Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) presumption that two 50% shareholders act together to control the corporation

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