Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
5 October 2018 APFF Roundtable Q. 12, 2018-0768831C6 F - Tax on Split Income and Partnership Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (a) - Subparagraph (a)(i) family partnership investing in designated stock exchange shares not subject to TOSI rules
Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) having non-contributing children as members of a family stock market partnership is subject to challenge under s. 103
Income Tax Act - Section 96 - Subsection 96(1.8) having non-contributing children in a family portfolio investment partnership subject to potential challenge under ss. 74.1 and 96(1.8)
5 October 2018 APFF Roundtable Q. 13, 2018-0778661C6 F - Tax on Split Income Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares returns to a spouse and older children from a Holdco in which they reinvested their Opco capital gains exemption could qualify as excluded amounts
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Arm's Length Capital no exclusion for arm’s length capital contribution where contribution derived from capital gain from related business
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) amounts not derived from a business were excluded amounts
5 October 2018 APFF Roundtable Q. 14, 2018-0768851C6 F - Avantage imposable découlant de l’utilisation d’un aéronef Income Tax Act - Section 15 - Subsection 15(1) shareholder benefit from corporate aircraft reduced by an interest-free loan made by the shareholder to fund its purchase
5 October 2018 APFF Roundtable Q. 15, 2018-0768861C6 F - Share exchange and statute of limitation Income Tax Act - Section 152 - Subsection 152(4) a price adjustment clause can operate re statute-barred transactions to affect a tax attribute that is used in the current year
General Concepts - Effective Date retroactive ACB adjustment under PAC to statute-barred transaction may be taken into account in a current relevant transaction
5 October 2018 APFF Roundtable Q. 16, 2018-0768871C6 F - Dépenses de bureau à domicile et d’automobile Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) example of proration of capped s. 13(7)(g) capital cost
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A capital cost of co-ownership interest
Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property depreciable property must be owned
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense payment of expenses of taxpayer by another does not preclude “incurring” by taxpayer
Income Tax Act - Section 9 - Nature of Income payment of taxpayer’s expenses by another might give rise to s. 9 or 80 inclusion
5 October 2018 APFF Roundtable Q. 17, 2018-0768881C6 F - entreprise exploitée activement – revenu de location Income Tax Act - Section 125 - Subsection 125(7) - Active Business Carried On by a Corporation question of fact whether a CCPC with too many employees to have a specified investment business carries on a business
Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business principal purpose means main or chief objective
5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 1, 2018-0761521C6 F - Life insurance policy as share redempt. proceeds Income Tax Act - Section 148 - Subsection 148(7) more gain will be realized if an appreciated life insurance policy is distributed as redemption proceeds rather than a dividend-in-kind
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 2, 2018-0765791C6 F - Tax on Split Income Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (a) - Subparagraph (a)(i) shares of a rental property company potentially may qualify as excluded shares for TOSI purposes

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