Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2020-11-04 22 June 2020 External T.I. 2017-0728051E5 F - Land inventory Income Tax Act - Section 70 - Subsection 70(5.2) “land” includes buildings and other improvements
13 August 2020 External T.I. 2019-0802891E5 F - Unclaimed RRSP Benefits Income Tax Act - Section 146 - Subsection 146(1) - Benefit - Paragraph (a) benefit includible in deceased annuitant’s return was not subject to "benefit"-(a) exclusion because it was not reported
Income Tax Act - Section 146 - Subsection 146(8) s. 146(8) benefit paid to the taxpayer’s administrator was not includible in her income until the year she was identified and received the amount
Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(c) tax imposed on RRSP under s. 146(4)(c) where RRSP issuer unaware of annuitant’s death
General Concepts - Payment & Receipt constructive receipt of amount deducted on account of fees that were the recipient’s obligation
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose fees incurred as a consequence of receiving unclaimed property (which was taxable under s. 146(8)) were non-deductible
Income Tax Act - Section 9 - Timing receipt of income by an administrator was not income of the beneficial owner until the year she was identified
2020-07-15 12 June 2020 External T.I. 2018-0788161E5 F - Adjusted stub period accrual amount Income Tax Act - Section 34.2 - Subsection 34.2(1) - Adjusted Stub Period Accrual Income - Paragraph (a) - Element B ASPA not reduced by s. 111(1)(e) losses
2020-06-17 2 June 2020 External T.I. 2020-0847081E5 F - Compte de frais médicaux – période de report Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan during COVID-19, unused HCSA credits can be carried forward for up to an additional 6 months
2020-06-03 29 May 2020 External T.I. 2020-0849841E5 F - Deferred salary leave plans (DSLP) Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) CRA will not require a DSLP to be terminated where the leave period has been terminated for COVID reasons
2020-05-27 9 April 2020 External T.I. 2014-0527261E5 F - Beneficial ownership discretionary power of trustees Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(a) discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner
Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(i) discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i)
General Concepts - Ownership discretion of trustee to accumulate rather than distribute income to sole beneficiary did not detract from beneficial ownership
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) "right to receive" all the income not satisfied where trustees' discretion to accumulate income
2020-05-20 8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant Income Tax Act - Section 146 - Subsection 146(8.9) discretionary s. 146(8.9) deduction is available even where no timely issuance of T4RSP, but no deduction where annuitant with surviving spouse dies after the maturity of the RRSP
Income Tax Act - Section 146.3 - Subsection 146.3(6.2) s. 146.3(6.2) deduction can be less than the formula amount and does not depend on timely receipt of T4RIF – but applies only when the last annuitant of a RRIF dies
Income Tax Regulations - Regulation 214 - Subsection 214(4) T4RSP issued to surviving spouse rather than to deceased where transfer of entire refund of premiums to surviving spouse’s RRSP and RRSP is fully distributed
Income Tax Regulations - Regulation 215 - Subsection 215(4) T4RIF issued to surviving spouse rather than to deceased where transfer of entire eligible amount to surviving spouse’s RRSP or RRIF, and RRIF is fully distributed
Income Tax Regulations - Regulation 205 - Subsection 205(1) issuer required to issue T4RSP or T4RIF within a reasonable time after notification of death received after February filing date
15 May 2020 External T.I. 2020-0848511E5 F - Deferred salary leave plans (DSLPs) Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) employer can defer the 6-year deferral period, e.g., for those with COVID-disrupted travel, pending Finance review
2020-04-29 9 March 2020 External T.I. 2013-0490301E5 F - Société exploitant une EPSP Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(p) - Subparagraph 18(1)(p)(ii) PSB can deduct for auto leasing costs or loan interest expense to extent of benefit conferred on the individual qua employee rather than shareholder – but no CCA deduction (other than under s. 18(1)(p)(iii))
2020-04-22 14 April 2020 APFF Roundtable Q. 5, 2020-0845431C6 F - Avantage imposable - télétravail / Taxable benefit Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employer reimbursement of up to $500 for the cost of a telework computer is non-taxable during COVID-19
2020-04-08 22 January 2020 External T.I. 2014-0559281E5 F - T5008 Income Tax Act - Section 49 - Subsection 49(1) writing of call option (with deemed nil ACB) is reported as having nil “cost” on T5008
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) option writer can deduct its expenses from deemed s. 49(1) proceeds
Income Tax Regulations - Regulation 230 - Subsection 230(2) “cost” of call options closed out by writer is nil, not the cost of offsetting call option purchase/cost re short sale is the FMV of the borrowed shares
Income Tax Act - Section 9 - Computation of Profit cost of short sale is FMV of borrowed shares
2020-03-04 11 October 2019 APFF Roundtable Q. 1, 2019-0819401C6 F - Interaction between par. 84.1(1)(b) and 129(1(a) Income Tax Act - Section 129 - Subsection 129(1) reversal of position that s. 84.1(1)(b) dividends do not generate dividend refunds
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) s. 84.1 dividend can generate dividend refund
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(z) s. 20(1)(z) applies notwithstanding s. 18(1)(a) but is subject to source rule in s. 20(1) preamble
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) lease termination payment received by tenant was referable to complete period of holding of (annually renewed) leasehold interest
Income Tax Act - Section 54 - Principal Residence lease termination payment received by tenant was eligible for principal residence exemption
Income Tax Act - Section 20 - Subsection 20(1) s. 20(1)-preamble source rule applied
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (c) reporting of principal residence exemption when the residence had been expanded from 1 to 2 duplex units
Income Tax Act - Section 45 - Subsection 45(3) method for making s. 45(3) election where conersion of duplex
Income Tax Act - Section 43 - Subsection 43(1) allocation of ACB between units in a duplex
11 October 2019 APFF Roundtable Q. 5, 2019-0812641C6 F - Professional fees incurred in the context of a litigation with CRA Income Tax Act - Section 60 - Paragraph 60(o) - Subparagraph 60(o)(i) s. 60(o)(i) generates professional fee deductibility from the moment that CRA informs that there is an audit
11 October 2019 APFF Roundtable Q. 6, 2019-0812651C6 F - CDA and wind-up of a subsidiary Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) IT-126R2 applicable in determining when CDA of sub is added to parent’s CDA
Income Tax Act - Section 88 - Subsection 88(1) IT-126R2 applied re tiiming of addition of the wound-up subsidiary’s CDA
11 October 2019 APFF Roundtable Q. 8, 2019-0821311C6 F - APFF 2019 Q.8: Surplus Documentation Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) failure to prepare surplus accounts will preclude a late-filed Reg. 5901(2)(b) election
Income Tax Act - Section 230 - Subsection 230(1) taxpayer must prepare adequate records to support surplus computations

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