Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2025-05-07 31 December 2024 External T.I. 2021-0885741E5 F - CIAPH - habitation admissible Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) - Subparagraph (a)(ii) s. (a)(ii) tested re occupancy as a “principal place of residence,” irrespective of whether the home was inside or outside Canada
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) - Subparagraph (a)(iii) s. (a)(iii) inapplicable if no spouse or common-law partner at the time of home acquisition
2025-04-23 4 January 2022 External T.I. 2016-0644861E5 F - Travail de nature temporaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) the "duties … of a temporary nature" condition is tested on a site-by-site basis
28 March 2025 External T.I. 2016-0662951E5 F - Alinéa b) de la définition d’action admissible de Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (b) settling QSBCS shares on a personal trust with related beneficiaries before a sale of those shares 6 months’ later would not cause QSBCS status to be lost
Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) settling QSBCS shares on a personal trust whose beneficiaries were related as required by s. 110.6(14)(c)(ii) permitted a sale thereafter without loss of QSBCS status
2025-04-16 4 March 2025 External T.I. 2024-1009691E5 F - Bump and Qualifying Exchange Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) a s. 132.2 exchange of MFC shares for MFT units precluded a s. 88(1)(d) bump of the MFT units
2025-04-09 2024 Ruling 2023-0998291R3 F - Multi-wings split-up net asset butterfly 55(3)(b) Income Tax Act - Section 55 - Subsection 55(1) - Distribution split-up butterfly between a divorced couple where excess debt is allocated to land rather than building to produce capital gains treatment
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(b) excess debt allocated on s. 85(1) transfer of land and building to the land so as to produce capital gains rather than recapture
17 January 2025 Internal T.I. 2024-1029791I7 F - SSUC - Rémunération de la haute direction / CEWS - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Executive Remuneration no adjustments are made to an eligible entity's Statement of Executive Compensation for NEOs filed pursuant to NI 51-102 for CEWS repayment purposes
Income Tax Act - Section 125.7 - Subsection 125.7(14) repayment based on NI 51-102 statements, without adjustments
2025-04-02 19 February 2025 External T.I. 2018-0744821E5 F - Régime d’assurance collective - groupe de personne Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) for a 2-person plan, a higher level of benefits for the majority shareholder would suggest that there was an individual policy for him, rather than being a group plan component
Income Tax Act - Section 15 - Subsection 15(1) rebuttable presumption that benefits of shareholder-employees from disability plan premiums were taxable/ meaning of "contemplated" shareholder
11 March 2025 External T.I. 2020-0845931E5 F - Transfert d’une propriété intellectuelle Income Tax Act - Section 9 - Capital Gain vs. Profit - Patents and Know-How the consequences of a sale of IP by a partnership for the benefit of a university and its researchers might be addressed in a ruling
2025-03-12 30 December 2024 Internal T.I. 2024-1031721I7 F - Notion de déclarant et statut d’Indien Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Canadian Entity - Paragraph (a) - Subparagraph (a)(iii) exemption of income under the Indian Act does not render the individual as exempt from Part I tax, so that T1135/ T1134 reporting is required
Other Legislation/Constitution - Federal - Indian Act - Section 87 individuals whose income is exempted under the Indian Act nonetheless are subject to the general T1135 and T1134 reporting obligations
Income Tax Act - Section 231.4 - Subsection 231.4(1) Indians whose income happens to be exempted under the Indian Act nonetheless are subject to the general T1135 and T1134 reporting obligations
30 December 2024 Internal T.I. 2024-1032121I7 F - Pénalité pour omissions répétées Income Tax Act - Section 163 - Subsection 163(1) per Whissell, where simultaneously filed returns for sequential taxation years, each return can be penalized for income omitted from the preceding (but simultaneously filed) return
31 October 2024 External T.I. 2024-1038061E5 F - Dedicated Carbon Storage Income Tax Act - Section 127.44 - Subsection 127.44(1) - Dedicated Geological Storage an underground rock deposit used for carbon capture can qualify for refundable tax credit purposes
2025-03-05 2022 Ruling 2021-0911791R3 F - Single-wing butterfly - Investment company Income Tax Act - Section 55 - Subsection 55(1) - Distribution single-wing butterfly of a DC held by two families’ Holdcos, with DC then amalgamated with one of the Holdcos
2025-02-19 18 June 2024 Internal T.I. 2024-1006551I7 F - Subsection 143.2(15) and statute-barred year Income Tax Act - Section 143.2 - Subsection 143.2(15) s. 143.2(15) authorized CRA to open-up a statute-barred year to deny the carryback of a loss which it will deny under s. 143.2
2025-02-12 11 December 2024 External T.I. 2024-1039101E5 F - Vertical amalgamation & former paragraph 84.1(2)(e) Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(e) s. 87(2)(j.6) continuity rule does not remediate the adverse consequences under the old intergenerational transfer rules of vertically amalgamating the subject corp
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(j.6) s. 87(2)(j.6) does not apply for purposes of the “old” s. 84.1(2)(e) intergenerational transfer rules
2025-01-29 28 November 2024 External T.I. 2024-1026331E5 F - Section 87 of the Indian Act Other Legislation/Constitution - Federal - Indian Act - Section 87 reserve residents generally can exempt their employment earnings by agreeing to perform over half of their duties from home
2025-01-22 7 January 2025 External T.I. 2022-0945291E5 F - Intérêts versés sur des obligations communautaires d’une coopérative Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) members providing legitimate debt financing of an NPO can be consistent with the s. 149(1)(l) conditions/ preferred shares that can bear “interest” cannot be issued
2025-01-15 10 October 2024 APFF Roundtable Q. 1, 2024-1028361C6 F - Règles de revente précipitée Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(b) there are no reorganization continuity rules to avoid triggering a flipped property gain from a disposition upon completion of a reorganization/ meaning of housing unit
Income Tax Act - Section 125 - Subsection 125(7) - Active Business Carried On by a Corporation gain from flipped property qualified for SBD
10 October 2024 APFF Roundtable Q. 2, 2024-1028371C6 - Transfert intergénérationnel d’entreprise – nouvelles règles Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(c) - Subparagraph 84.1(2.32)(c)(i) retention of special voting shares by parent would preclude access to s. 84.1(2)(e) exception
Income Tax Act - Section 84.1 - Subsection 84.1(2.3) - Paragraph 84.1(2.3)(i) parent remaining as director of the subject corporation would entail a retention of management
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(a) s. 84.1(2)(e) exception is available only for the 1st disposition if the subject corporation shares are sold in tranches
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(f) - Subparagraph 84.1(2.32)(f)(ii) s. 84.1(2.32)(f)(ii) not satisfied if substantial unpaid purchase price at end of 10 years
10 October 2024 APFF Roundtable Q. 4, 2024-1028431C6 F - Production d’une déclaration de renseignements T1134 dans une situation donnée Income Tax Act - Section 233.4 - Subsection 233.4(4) example of a designated related-group entity filing a single T1134 for the group
10 October 2024 APFF Roundtable Q. 5, 2024-1028681C6 F - Précisions sur les instructions au formulaire T1134 Income Tax Act - Section 233.4 - Subsection 233.4(4) a reporting-entity partnership with a partner related to other group members can qualify as a member of a related group for T1134-reduced reporting purposes
10 October 2024 APFF Roundtable Q. 6, 2024-1028881C6 F - Revenu protégé Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) GAAR may apply where the purpose of a s. 55(3)(a) redemption for a note is increasing outside basis, but not where freeze shares are redeemed for personal cash needs
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income was not allocable to preferred share issued on s. 85(1) roll-in of goodwill
10 October 2024 APFF Roundtable Q. 7, 2024-1027361C6 F - Impôt en main remboursable au titre de dividendes déterminés et impôt en main remboursable au titre de dividendes non déterminés Income Tax Act - Section 129 - Subsection 129(4) - Non-Eligible Refundable Dividend Tax on Hand potential conversion of ERDTOH to NERDTOH through inter-corporate dividends
10 October 2024 APFF Roundtable Q. 8, 2024-1028891C6 F - Définition du terme « automobile » Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) the exclusions under (e), in the case of a leased vehicle, are to be applied in the year of lease signing
10 October 2024 APFF Roundtable Q. 9, 2024-1028901C6 F - Exercice d’une option d’achat et vente du véhicule Income Tax Act - Section 13 - Subsection 13(5.2) vehicle lease payments converted into recapture on option exercise and vehicle sale
Income Tax Act - Section 49 - Subsection 49(3) portion of lease payments added to ACB of purchase option only to the extent reasonably attributable thereto
10 October 2024 APFF Roundtable Q. 10, 2024-1028911C6 F - Traitement fiscal du montant payé par un particulier en affaires pour mettre fin hâtivement à un contrat de location automobile Income Tax Act - Section 67.3 an early lease termination fee might potentially be an “actual lease charge” for purposes of the s. 67.3 lease-payment deductibility limit
10 October 2024 APFF Roundtable Q. 11, 2024-1028921C6 F - Récupération d’amortissement liée à un bien de la catégorie 10.1 – travailleur autonome Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(d) where a vehicle is used both personally and for business by a self-employed worker, there is a choice between a simplified method, and that under ss. 13(7)(c) and (d)

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