Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2026-02-18 20 November 2025 External T.I. 2022-0940101E5 F - AAPE - Sommes déposées en fidéicommis - contrat d’arrangements préalables de services funéraires Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation funeral prepayments received in trust under the applicable Quebec Act are not assets of a funeral company
2026-02-04 19 August 2025 External T.I. 2025-1066571E5 - Distribution of settlement monies to First Nation Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c) Indian band council is always a s. 149(1)(c) exempt municipality
Income Tax Act - Section 3 - Paragraph 3(a) distribution of land claims settlement amount by Indian band council to its members (including non-Indians) would not constitute income from a source
Income Tax Act - Section 104 - Subsection 104(13) land compensation received by a trust formed an Indian band council would be treated as a capital distribution when distributed
2026-01-28 2024 Ruling 2024-1029151R3 F - Hybrid Post-mortem pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction for transfer of preferred shares of estate in investments company to Newco held by children’s trust (also holding the common shares)
2026-01-21 9 October 2025 APFF Financial Planning Roundtable Q. 1, 2025-1070231C6 F - Impôt à payer sur les placements interdits ou non admissibles et remboursement d’impôt Income Tax Act - Section 207.04 - Subsection 207.04(4) there is no set-off of an allowable refund of s. 207.04(1) tax of a controlling individual against that tax if the allowable refund arose in the following year
Income Tax Act - Section 207.07 - Subsection 207.07(2) allowable refund arising in a subsequent year is to be dealt with separately by CRA pursuant to s. 207.07(2), rather than set-off against the s. 207.04(1) tax under s. 207.07(1)
9 October 2025 APFF Financial Planning Roundtable Q. 2, 2025-1068491C6 - Obligation de produire un Feuillet T5 Income Tax Regulations - Regulation 201 - Subsection 201(1) - Paragraph 201(1)(b) - Subparagraph 201(1)(b)(i) requirement for T5 reporting by the issuer of a fully registered bond both any s. 12(4) interest on stripped coupons and of the interest-coupon payments
Income Tax Regulations - Regulation 201 - Subsection 201(4) Reg. 201(4) reporting of accrued interest is backed out of subsequent Reg. 201(1)(b)(i) reporting of interest-coupon payment
9 October 2025 APFF Financial Planning Roundtable Q. 3, 2025-1068401C6 - Déductibilité des intérêts et règle générale anti-évitement Income Tax Act - Section 245 - Subsection 245(4) structuring to satisfy the s. 20(1(c) direct-use test is not contrary to the amended GAAR
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) restructuring to create direct income-producing use did not contravene GAAR
9 October 2025 APFF Financial Planning Roundtable Q. 4, 2025-1061831C6 F - Transfert direct à un régime enregistré d’épargne retraite dans les 60 premiers jours de l’année et l’Annexe 7 Income Tax Act - Section 60 - Paragraph 60(l) - Subparagraph 60(l)(v) a s. 60(l)(v) RRIF-to-RRSP direct transfer in the first 60 days of the year must be reported on the Sched. 7 for the previous taxation year
9 October 2025 APFF Financial Planning Roundtable Q. 5, 2025-1062481C6 F - Revenus assujettis à l’impôt sur le revenu fractionné Income Tax Regulations - Regulation 201 - Subsection 201(1) no notation required on a T5 or T3 slip that the income is TOSI
Income Tax Act - Section 120.4 - Subsection 120.4(2) the payer of TOSI does not have to identify it as such on its tax-reporting slips
9 October 2025 APFF Financial Planning Roundtable Q. 6, 2025-1061811C6 F - Application du paragraphe 12(12) de la Loi de l’impôt sur le revenu à une perte Income Tax Act - Section 12 - Subsection 12(14) s. 12(14) does not deny losses on the disposition of housing units
9 October 2025 APFF Financial Planning Roundtable Q. 7, 2025-1062470C6 - Vente partielle et revente précipitée Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(a) - Subparagraph 12(13)(a)(i) a housing unit includes a co-ownership interest therein for purposes of the flipped property rules
9 October 2025 APFF Financial Planning Roundtable Q. 10, 2025-1061821C6 F - Prestation de pension de la sécurité de la vieillesse reçue dans une année d’imposition antérieure et qui doit être remboursée Income Tax Act - Section 60 - Paragraph 60(n.2) estate is not entitled to an s. 60(1)(n) or (n.2) deduction when it repays an excess OAS benefit that was included in the deceased’s income
Income Tax Act - Section 60 - Paragraph 60(n) an estate is not entitled to deduct an OAS overpayment to the deceased that it repays
9 October 2025 APFF Financial Planning Roundtable Q. 11, 2025-1068471C6 F - CELIAPP et acquisition d’une habitation admissible en partie et non en totalité Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) the acquisition of an undivided interest in a qualifying home can be accommodated
9 October 2025 APFF Financial Planning Roundtable Q. 12, 2025-1068481C6 F - CELIAPP – Acquisition par donation et retrait admissible Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) the gift of a qualifying home by notarized deed to the FHSA holder would satisfy para. (c)
9 October 2025 APFF Financial Planning Roundtable Q. 13, 2025-1070191C6 F - Retrait d’un placement par opération de swap Income Tax Act - Section 207.04 - Subsection 207.04(4) the transfer of a registered plan investment to the controlling individual shortly before its becoming non-qualified is a swap transaction subject to non-refundable tax
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Swap Transaction - Paragraph (c) the transfer of a registered plan investment to the controlling individual shortly before its becoming non-qualified is a swap transaction
2026-01-14 9 October 2025 APFF Roundtable Q. 1, 2025-1071431C6 - Capital dividend and inclusion rate for 2024 Income Tax Act - Section 184 - Subsection 184(3) CRA cannot cancel Part III tax payable as a result of the CGIR being maintained at ½
Income Tax Act - Section 220 - Subsection 220(3.1) CRA does not have the power to waive tax, e.g., Pt. III tax
9 October 2025 APFF Roundtable Q. 2, 2025-1071611C6 - Application ou non des paragraphes 227(8) et 227(9) L.I.R Subsections 227(8), 227(9) and 162(7) Income Tax Act - Section 162 - Subsection 162(7) no penalty under s. 162(7) for failure to withhold or remit Pt. XIII tax on an s. 214(16)(a) deemed dividend
Income Tax Act - Section 227 - Subsection 227(8.5) - Paragraph 227(8.5)(a) no penalty under s. 227(9) for failure to withhold or remit Pt. XIII tax on a s. 214(16)(a) deemed dividend because time required to apply s. 18(4)
Income Tax Act - Section 227 - Subsection 227(8.3) - Paragraph 227(8.3)(b) interest accrued under s. 227(8.3)(b) between date of s. 214(16)(a) deemed dividend and remittance of Part XIII tax
Income Tax Act - Section 227 - Subsection 227(9) s. 227(9) inapplicable where no withholding (and also where there was no obligation to withhold pursuant to s. 227(8.5)(a)
9 October 2025 APFF Roundtable Q. 3, 2025-1071581C6 F - Fusion et actions admissibles de petite entreprise Income Tax Act - Section 256 - Subsection 256(9) acquisition of CCPC for SBC purposes occurs at its actual time irrespective of s. 256(9)
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) an amalgamation of Acquireco with Targetco should be treated notwithstanding s. 87(2)(a) as being sequenced after the Targetco acquisition
9 October 2025 APFF Roundtable Q. 4, 2025-1071461C6 - Méthode estimative pour acompte provisionnel et décès : comment se calculent les intérêts Income Tax Act - Section 220 - Subsection 220(3.1) CRA may relieve interest on deficient or insufficient pre-death instalments
9 October 2025 APFF Roundtable Q. 5, 2025-1071471C6 F - Déduction pour la mobilité de la main-d’œuvre pour les gens de métier – Frais de réinstallation temporaire Income Tax Act - Section 8 - Subsection 8(14) - Paragraph 8(14)(e) - Subparagraph 8(14)(e)(iii) s. 8(14)(e)(iii) does not preclude deduction for the excess of the relocation expense over a non-taxable allowance received
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(t) excess of relocation expenses over allowance received was deductible
9 October 2025 APFF Roundtable Q. 6, 2025-1071481C6 F - Transfert intergénérationnel d’entreprise – entité pertinente du groupe Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(a) simultaneous sale of QSBCS of an Opco and a Realtyco specified group entity to a childco could satisfy s. 84.1(2.31)(a) or (2.32)(a)
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(a) no prohibition against the use of the intergenerational transfer rules on a simultaneous sale of 2 QSBCS corps (one a specified group entity) to a childco
9 October 2025 APFF Roundtable Q. 7, 2025-1071491C6 F - Application de l’article 80 L.I.R. et réduction du prix de base rajusté Income Tax Act - Section 47 - Subsection 47(1) the amount of capital gain realized on the partial repayment of two advances with low and full basis turned on whether they were separate properties and how the debtor applied the repayment
General Concepts - Payment & Receipt Quebec debtor has the right to determine which advance a repayment should be applied to
9 October 2025 APFF Roundtable Q. 8, 2025-1071501C6 - Application des nouvelles positions de l’ARC concernant le paragraphe 55(2) L.I.R. Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) most (e.g., calendar-year) corporations should continue to use the old (pre-Update) CRA positions in computing safe income for 2023 and prior taxation years
9 October 2025 APFF Roundtable Q. 9, 2025-1071511C6 F - Le sous-alinéa 55(5)e)(i) L.I.R. Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(i) QSBCS exception to s. 55(5)(e)(i) applied to the repurchase of QSBCS held by a sibling’s Holdco simultaneously with the repurchase of the other sibling’s Holdco’s non-QSBCS
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (a) must be direct ownership of a share of the corp by an individual or a related partnership

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