Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2023-05-24 12 January 2023 External T.I. 2020-0866661E5 F - Don d’une partie d’un intérêt dans une police d’as
7 October 2022 Roundtable, 2021-0895981C6 F - Don d’une partie d’un intérêt dans une police d’as Income Tax Act - Section 148 - Subsection 148(9) - Disposition implementing a life insurance interest sharing strategy may entail the entire policy’s disposition and uncertainties as to what interest is disposed of
15 May 2023 External T.I. 2023-0965261E5 F - Sommes retirées dans le cadre du RAP et CELIAPP Income Tax Act - Section 146.6 - Subsection 146.4(6) HBP withdrawals can be contributed to an FHSA
2023-05-17 15 February 2023 External T.I. 2022-0953991E5 F - Paragraph 84.1(2)(e) and amalgamation Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(e) loss of s. 84.1(2)(e) safe harbour on an amalgamation of the purchaser and subject corporation
2023-04-05 4 January 2022 External T.I. 2015-0607531E5 F - Action admissible de petite entreprise Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (e) s. 110.6(1)(e) applies to successive share substitutions (including an amalgamation)
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(i) s. 110.6(14)(f)(i) can apply to an amalgamation
2021 Ruling 2020-0847671R3 F - Transfert d'un immeuble Income Tax Act - Section 15 - Subsection 15(1) no s. 15(1) benefit on property transfer to shareholders for its nominal appraised FMV if indeed such FMV was suppressed by the low-rent long-term leases to the shareholders
General Concepts - Fair Market Value - Land no demurral re a property’s FMV being suppressed by long-term leases with nil net rents
Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) corporation governed by CBCA presented to CRA as an NPO
2023-03-29 23 January 2023 External T.I. 2020-0865161E5 F - SSUC/CEWS – Sous-alinéa 125.7(4)e)(i) et personne Income Tax Act - Section 125.7 - Subsection 125.7(4) - Paragraph 125.7(4)(e) electing taxpayer can receive amounts through third party where receipt on its behalf is established by agreement or statute
General Concepts - Payment & Receipt a cash-basis taxpayer can receive an amount when it is received through a third party
2023-03-22 23 December 2022 Internal T.I. 2021-0880421I7 F - SUCL - Dépenses de loyer admissibles Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Rent Expense - Variable A - Paragraph (b) - Subparagraph (b)(i) government assistance does not reduce interest
2023-03-08 16 January 2023 Internal T.I. 2020-0851561I7 F - SSUC/CEWS -– rémunération admissible et rémunérati Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Remuneration eligible remuneration for each qualifying period includes additions for vacation and sick leave, but excludes taxable benefits
Income Tax Act - Section 125.7 - Subsection 125.7(1) - Baseline Remuneration baseline remuneration includes additions for vacation and sick leave pay, and security allowances
2023-03-01 30 June 2022 Internal T.I. 2022-0936671I7 F - Frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) one-time travel between a home office and the employer’s office was in the course of employment
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) per-kilometer allowances for one-time travel between home office and employer’s office qualified under s. 6(1)(b)(vii.1
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) one-time travel between home office and employer’s office did not qualify as travel away from the employer’s establishment
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) potential exclusion of allowances for meals and hotels paid for travel to a remote work site (an office) of the employer where the employees stay for 3 days
2023-02-22 22 December 2022 Internal T.I. 2020-0856411I7 F - SSUC/CEWS -– Rémunération admissible Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Remuneration eligible remuneration for each qualifying period for CEWS purposes includes additional payments for vacation and sick leave pay
2021 Ruling 2020-0862431R3 F - Variation of a trust deed and addition of new beneficiaries Income Tax Act - Section 248 - Subsection 248(1) - Disposition trust deed amendment by court order to permit addition of corporations that were only indirectly owned by family beneficiaries did not trigger a disposition/ such addition triggered disposition of trust interests but without proceeds
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) addition of corporate beneficiaries to discretionary trust resulted in a disposition by existing family beneficiaries, but not in the receipt by them of proceeds of disposition
17 November 2022 External T.I. 2021-0919001E5 F - Eligible Dividends and Non-Capital Loss Carry-Back Income Tax Act - Section 89 - Subsection 89(1) - General Rate Income Pool - Element B B of formula reduces GRIP by NCLs carried back
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(i) CRA discretion re accepting adjustment to losses carried back provided that the amendment request is made within the s. 152(4)(b)(i) period and loss year not statute-barred
Income Tax Act - Section 152 - Subsection 152(6) - Paragraph 152(6)(c) s. 152(6)(c) permitted amending carryback request, if made within s. 152(6)(c) deadline and normal reassessment period, and implicitly authorized consequential Part III.1 reassessment
Income Tax Act - Section 152 - Subsection 152(3) s. 152(3) (and, consequentially, s. 185.2(2)) requires filing of amended return to reflect missing excessive dividend
Income Tax Act - Section 185.1 - Subsection 185.1(2) s. 185.1(2) election can be made before the incremental Part III.1 assessment that is being avoided
2022 Ruling 2022-0933261R3 F - Subsection 104(4) and pipeline transaction Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction for a trust realizing a s. 104(4)(b) gain and using a non-controlled Newco
2023-02-08 2021 Ruling 2021-0887301R3 F - Post-mortem pipeline transaction Income Tax Act - Section 84 - Subsection 84(2) double pipeline entailing the application of s. 84.1 and s. 88(1)(d) bump
Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) - Subparagraph 84.1(2)(a.1)(ii) application of ss. 84.1(1) and (2)(a.1)(ii) to transfer of shares by spousal trust that had received such shares from the testator who had stepped such shares up under s. 110.6(2.1)
Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d.3) application of s. 88(1)(d.3) to pipeline involving shares that had been stepped up under s. 104(4)
2021 Ruling 2021-0904311R3 F - Butterfly Reorganization Income Tax Act - Section 55 - Subsection 55(1) - Distribution butterfly transaction for a farming corp (DC) of two brothers coupled with an immediate gift of shares of DC and TC to their respective sons under s. 73(4.1)
Income Tax Act - Section 191 - Subsection 191(5) specified amount included in shares issued on butterfly distribution
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) circularity avoided through intervening taxation year end of transferee corp
2023-01-25 2022 Ruling 2020-0858451R3 F - Trust to trust transfer Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Trust - Paragraph (g) deemed disposition under s. 104(4) avoided through irrevocable vesting of interests in successor trust
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (f) no disposition on transfer of assets of Trust 1 to Trust 2 with essentially the same terms other than a clause facilitating irrevocable-vesting designations
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 1, 2022-0936241C6 F - T1135 and situs of cryptocurrencies Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) expanded crypto disclosure may be required
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 2, 2022-0936281C6 F - police d'assurance-vie & avantage Income Tax Act - Section 246 - Subsection 246(1) taxable benefit where 2 Holdcos pay premiums on life insurance policies of which their jointly-owned sub is beneficiary unless s. 246(2) applies
Income Tax Act - Section 9 - Expense Reimbursement premiums paid by parent on a sub’s life insurance policies are non-deductible even if reimbursed on income account
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures premiums paid by Holdcos on policies of which their jointly-owned company (Opco) is the beneficiary are non-deductible capital expenditures even if reimbursed by the Opcos
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 3, 2022-0943261C6 F - Average Exchange Rate Income Tax Act - Section 261 - Subsection 261(1) - Relevant Spot Rate circumscribed acceptance of using average exchange rates

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