Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2026-01-14 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 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
9 October 2025 APFF Roundtable Q. 10, 2025-1071591C6 - Application du paragraphe 220(4.5) L.I.R. à l’impôt minimum de remplacement causé par la disposition réputée prévue à l’alinéa 128.1(4)b) L.I.R.SECTION 127.5; 127.51; 127.52; 128.1(4)(b); 220(4.5) Income Tax Act - Section 220 - Subsection 220(4.5) - Paragraph 220(4.5)(a) - Subparagraph 220(4.5)(a)(i) departure tax deferral under s. 220(4.5)(a)(i) is available for AMT payable because of s. 128.1(4)(b)
Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) gain under s. 128.1(4)(b) can produce AMT
9 October 2025 APFF Roundtable Q. 11, 2025-1071521C6 - Validity of a CDA election Income Tax Act - Section 83 - Subsection 83(2) a valid s. 83(2) election and the accompanying resolution must specify a dollar amount
9 October 2025 APFF Roundtable Q. 12, 2025-1071531C6 F - Confirmer le traitement fiscal des Simple Agreement for Future Equity Income Tax Act - Section 51 - Subsection 51(1) SAFE likely is not a share, or a bond, debenture or note
Income Tax Act - Section 49.1 conversion of a SAFE into equity might not be a disposition by virtue of s. 49.1
Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract conditional contractual obligation to issue shares likely was not a bond, debenture or note
9 October 2025 APFF Roundtable Q. 13, 2025-1071541C6 - Irrégularité dans le calcul des pénalités lorsqu’un choix doit être produit Income Tax Act - Section 85 - Subsection 85(8) there is only one penalty month if an election due on February 28 was filed on or before March 31 of the following month
Statutory Interpretation - Interpretation Act - Section 28 February 28 to March 31 is one month
9 October 2025 APFF Roundtable Q. 14, 2025-1071601C6 F - Actif utilisé principalement dans une entreprise exploitée activement (« EEA ») Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) - Subparagraph (c)(i) the equivalence of cash held to future years’ expenses is insufficient to establish that such cash was used in the business
9 October 2025 APFF Roundtable Q. 15, 2025-1071571C6 F - Transfert intergénérationnel d’entreprise et transfert de la gestion Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(g) - Subparagraph 84.1(2.31)(g)(i) s. 84.1(2.31)(g)(i) accommodates a transfer of management (including part management) by a parent to both a child and a 3rd party
9 October 2025 APFF Financial Planning Roundtable Q. 8, 2025-1071561C6 F - Revente précipitée et date de disposition Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(b) deferring the date of disposition of a housing unit to well after the sale date and 366 days after the acquisition date would avoid the flipped property rules
9 October 2025 APFF Financial Planning Roundtable Q. 9, 2025-1071451C6 F - Règle sur les reventes précipitées et location à court terme Income Tax Act - Section 67.7 - Subsection 67.7(1) - Residential Property a room or a basement can qualify as a “residential property”
Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(a) “housing unit” is restricted to a single housing unit
2026-01-07 25 August 2025 Internal T.I. 2023-0974491I7 F - Qualification of Shares as "Prescribed Shares" Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(a) - Subparagraph 6204(1)(a)(iii) where two share classes are inter-convertible, a capped liquidation entitlement for one class will cause both to be non-prescribed shares under Reg. 6204(1)(a)(iii)
2025-12-10 12 November 2025 External T.I. 2022-0923141E5 F - Allocation raisonnable pour frais de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) a meal allowance based solely on kilometerage is not reasonable
2025-11-26 3 June 2025 External T.I. 2022-0925091E5 F - Élément d’actif - Immeuble détenu en copropriété par indivision Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation - Paragraph (a) an undivided interest in a building can satisfy the asset use test in the SBC and QSBCS definitions
2025-11-19 10 September 2025 External T.I. 2025-1070171E5 F - Disposition of a right to receive bitcoins Income Tax Act - Section 9 - Capital Gain vs. Profit - Cryptocurrency lack of income on bitcoins suggested that they might be acquired on income account
Income Tax Act - Section 54 - Adjusted Cost Base property acquired on income account does not have an ACB
2025-09-17 19 June 2025 External T.I. 2024-1045841E5 F - Application of subsection 152(4.2) of the Act at death Income Tax Act - Section 152 - Subsection 152(4.2) the heir of a deceased employee who became entitled to a tax-free pay adjustment should count the s. 152(4.2) 10-year claim period from the year of payment
Income Tax Act - Section 5 - Subsection 5(1) retroactive pay adjustment that was agreed to after the employee’s death was non-taxable
Income Tax Act - Section 3 - Paragraph 3(a) retroactive pay adjustment that arose after death was tax-free
2025 Ruling 2025-1052291R3 F - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) post-mortem pipeline entailing issuance of 8 quarterly notes by Newco 12 months after its acquisition of the stepped-up shares
Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital transactions contemplated the distribution of all the PUC of common shares
2025-09-03 3 June 2025 External T.I. 2025-1064821E5 F - Related persons Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(b) - Subparagraph 251(2)(b)(iii) repeated application of ss. 251(2)(b)(ii) and (iii) to relate two corporations
2025-08-27 4 July 2025 Internal T.I. 2025-1054791I7 F - Provincial allocation - CEWS Income Tax Regulations - Regulation 402 - Subsection 402(3) CEWS is excluded from gross revenue and wages for Reg. 402(3) purposes
Income Tax Regulations - Regulation 402 - Subsection 402(3) gross revenue does not include government assistance re expenses
2025-08-06 6 May 2025 External T.I. 2024-1010641E5 F - Relevant Group Entity Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(c) - Subparagraph 84.1(2.31)(c)(iii) the retention of Opco’s real estate in the parent’s Realtyco after a sale of Opco to the child’s Holdco does not render Realtyco a relevant group entity
2025-07-30 2024 Ruling 2024-1027631R3 F - Post-mortem planning - Pipeline Income Tax Act - Section 84 - Subsection 84(2) classical 24-month pipeline transaction for an investments company whose portfolio had performed poorly
1 May 2025 External T.I. 2024-1030911E5 F - Scholarships to non-residents to study French Income Tax Act - Section 118.94 scholarships received by non-resident temporary workers for French language training would be included in their worldwide income s. 118.94 computation purposes
Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(e) - Subparagraph 115(2)(e)(ii) scholarships received by non-resident temporary workers for French language training would not be included in their taxable income earned in Canada
2025-07-16 2024 Ruling 2024-1018811R3 F - RCA, Refundable Tax, Letter of credit Income Tax Act - Section 207.5 - Subsection 207.5(2) an RCA trust’s refundable Pt. XI.3 tax can be refunded through winding it up and replacing it by a new LC trust
2025-07-09 26 February 2025 Internal T.I. 2023-0985151I7 F - Remboursement de frais juridiques par un actionnaire à sa société / Reimbursement of legal fees by a shareholder Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees the vendor’s agreed reimbursement of the sold corporation’s legal costs of a failed suit in consideration for a dividend had the suit succeeded, likely was non-deductible
Income Tax Act - Section 42 - Subsection 42(1) - Paragraph 42(1)(b) - Subparagraph 42(1)(b)(ii) s. 42(1)(b)(ii) might apply to the vendor’s agreed reimbursement, post-sale, of the sold corporation’s legal costs of a failed suit
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense contingent dividend prospect likely did not support a deduction for an obligation to reimburse legal fees
22 May 2024 External T.I. 2024-1016211E5 F - Mineral Resource Cert - XXXXXXXXXX Income Tax Act - Section 248 - Subsection 248(1) - Mineral Resource - Paragraph (d) - Subparagraph (d)(i) NRC certification received
2025-07-02 29 April 2025 External T.I. 2024-1036641E5 F - Relevant Group Entity Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(c) - Subparagraph 84.1(2.31)(c)(iii) a Realtyco, whose shares qualified as QSBCS based on a related corporation’s active business, would be a “relevant group entity” on a sale of the latter’s shares

Pages