Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2024-12-18 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 1, 2024-1023641C6 - Intercompany loans and taxable benefits Income Tax Act - Section 15 - Subsection 15(1) inter-corporate bona fide non-interest bearing loan does not engage s. 15
Income Tax Act - Section 246 - Subsection 246(1) s. 246(1) not engaged by no-interest loan between corporations with distinct ownership
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 2, 2024-1023251C6 F - Use of an average rate for coupons Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) four conditions for the use of an average exchange rate in the example of a stripped coupon
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 3, 2024-1027801C6 F - Revente précipitée et auto-construction Income Tax Act - Section 12 - Subsection 12(13) the holding period for a housing unit under the flipped property rules commences when it becomes habitable
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 4, 2024-1027831C6 F - Revente précipitée et changement d'usage Income Tax Act - Section 12 - Subsection 12(13) a s. 45 change of use does not restart the 365-day period under the flipped property rules
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) - Subparagraph 45(1)(a)(i) s. 45 rules apply only for capital gains purposes
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 5, 2024-1023291C6 F - Paiements rétroactifs - Droits ou biens / Retroact Income Tax Act - Section 70 - Subsection 70(2) s. 70(2) return can be filed before the filing deadline with an estimated amount if precise amount is not yet known due to administrative delay
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 6, 2024-1023301C6 F - CELIAPP - Séparation / FHSA - Separation Income Tax Act - Section 146.6 - Subsection 146.6(7) s. 146.6(7) does not override the requirement for the transferee (ex-)spouse to be a “qualifying individual”
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 7, 2024-1024211C6 F - CELIAPP et transfert via la succession Income Tax Act - Section 146.6 - Subsection 146.6(15) - Paragraph 146.6(15)(a) a deceased’s FHSA can be rolled into the surviving spouse’s FHSA, RRSP or RRIF even if the proceeds go first to the estate (albeit, subject to s. 153(1)(v)(i) withholding)
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 8, 2024-1023591C6 F - NERDTOH and foreign investment income Income Tax Act - Section 129 - Subsection 129(4) - Non-Eligible Refundable Dividend Tax on Hand - Paragraph (a) - Subparagraph (a)(i) - Variable B explanation of 8% adjustment to the FTC deduction under the NERDTOH computation for foreign investment income
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 9, 2024-1015481C6 F - Crédit d'impôt pour la rénovation d'habitations multigénérationnelles et exemption pour résidence principale Income Tax Act - Section 122.92 - Subsection 122.92(1) - Qualifying Relation qualifying relation does not extend to the spouse of a nephew or niece
Income Tax Act - Section 252 - Subsection 252(2) - Paragraph 252(2)(g) s. 252(2)(g) does not extend to the spouse or common-law partner of a niece or nephew
Income Tax Act - Section 54 - Principal Residence renovation to create a secondary unit for s. 122.92 credit purposes generally means that the whole building no longer can be designated as the taxpayer’s principal residence
Income Tax Act - Section 122.92 - Subsection 122.92(1) - Eligible Individual credit is not lost if secondary unit is then sold to its qualifying occupants
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 10, 2024-1027331C6 F - Distribution of life insurance - 107(2) and 148(7) Income Tax Act - Section 148 - Subsection 148(7) where both ss. 107(2) and 148(7) apply to a personal trust’s distribution of a life insurance policy in satisfaction of capital interest, s. 107(2) prevails over s. 148(7)
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) s. 107(2) prevails over s. 148(7) re a life insurance policy distribution in satisfaction of a capital interest
10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 11, 2024-1031061C6 F - Remboursement dans le cadre du RAP - Repayment und Income Tax Act - Section 146.01 - Subsection 146.01(1) - HBP Balance where opening HBP balance is repaid in Year 1 with RRSP contribution, the HBP balance is not reduced until the Sched. 7 is filed in March of Year 2
Income Tax Act - Section 146.01 - Subsection 146.01(3) HBP balance not reduced to nil be earlier repayment until related designation made in the return for the year u
2024-12-04 19 January 2024 External T.I. 2020-0865921E5 F - Foreign Currency dispositions by an individual Income Tax Act - Section 39 - Subsection 39(1.1) foreign currency dispositions under s. 39(1.1) include FX bank deposit conversions
2024-11-06 2022 Ruling 2022-0929431R3 F - Entity classification Income Tax Act - Section 248 - Subsection 248(1) - Corporation a French société civile de placement immobilier (SCPI) is a corporation
Income Tax Act - Section 96 French SCPI is a corporation rather than partnership
2024-10-30 29 May 2024 External T.I. 2019-0819561E5 F - Catégorie d’amortissement 53 de l’Annexe II du Règlement Income Tax Regulations - Schedules - Schedule II - Class 29 having equipment owned separately from the services business in which its product is used could permit the manufactured product to be “sold” to the services business
Income Tax Regulations - Schedules - Schedule II - Class 53 having equipment owned separately from the services business in which its product is used could permit it to qualify as Class 53 property
2023 Ruling 2023-0986521R3 F - 104(4) and Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline transfer by inter vivos family trust of preferred shares (stepped-up under s. 104(4)(b)(ii)) to an existing family company for notes
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(b) - Subparagraph 104(4)(b)(ii) inter vivos chooses to realize gain on its preferred shares on its 21st anniversary, and transfer those shares for notes in a pipeline trnasaction
2024-10-02 2023 Ruling 2022-0957491R3 F - Butterfly Reorganization Income Tax Act - Section 55 - Subsection 55(1) - Distribution butterfly to 2 new Holdcos of the 2 children beneficiaries of estate following the implementation by the estate of a pipeline transaction
2023 Ruling 2023-0998411R3 F - Butterfly Reorganization Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) occurrence of 1st year ends of butterfly transferee corporations due to implementation delay caused a Pt. IV tax circularity issue
2024-07-03 21 December 2022 Internal T.I. 2019-0826411I7 - Classification of a Burkina Faso SARL Income Tax Act - Section 248 - Subsection 248(1) - Corporation a Burkina Faso S.A.R.L. is a corporation rather than partnership
Income Tax Act - Section 96 a Burkina Faso S.A.R.L. is more akin to a Canadian corporation than partnership
2024-06-26 2024 Ruling 2023-0994301R3 F - Loss consolidation arrangement Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) loss-shifting transactions beneath a non-wholly owning Canadian LP
2024-06-12 2024 Ruling 2023-0989121R3 F - Internal reorganization - 55(3)(a) and 55(3.01)(g) Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(g) transfer of real estate to separate Realtyco beneath a newly-formed Holdco
Income Tax Act - Section 75 - Subsection 75(2) 2 unrelated individuals were the settlors for each other’s family trust
Income Tax Act - Section 248 - Subsection 248(10) estate freeze transactions represented to be independent of subsequent transfer
Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3.01)(g) applied to the transfer (fresh after an estate freeze) by unrelated shareholders of Opco to a new Holdco, with an Opco realty spin-off to a new Realtyco sister
16 April 2024 Internal T.I. 2023-0998991I7 F - Qualification fiscale de certaines sommes Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) amount per week of training in short-term program leading to a skills training certificate was a bursary/ amount paid upon graduation was a bursary or a prize
2024-06-05 4 April 2024 External T.I. 2023-0996201E5 - Employment income to sole shareholder Other Legislation/Constitution - Federal - Indian Act - Section 87 the salary of a status Indian from his corporation may be exempted based on the relative sourcing of its income on and off reserve
2024-05-29 14 March 2024 External T.I. 2015-0596761E5 F - Traitement fiscal Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense expenditure on anti-theft marking of car likely would be on current account
Income Tax Act - Section 18 - Subsection 18(9) practice is not to apply s. 18(9) where the adjustments would be minimal
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) - A - Subparagraph A(iv) mandatory requirement for employee notification to employer by end of year
2024-04-24 7 October 2021 Roundtable, 2021-0908201C6 F - Vente d'un bien détenu en copropriété par indivisi Income Tax Act - Section 74.2 - Subsection 74.2(1) imputation of an inter-spousal gift or loan on spouses’ property purchase (based on how the sales proceeds were agreed to be shared) engaged s. 74.2(1)

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