Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2021-03-31 7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 1, 2020-0852761C6 F - Taxable capital gain designation
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 3, 2020-0848761C6 F - Réorganisations de sociétés étrangères avec dérivation admissibles Income Tax Act - Section 86.1 - Subsection 86.1(2) - Paragraph 86.1(2)(f) CRA is now disclosing the transaction date for eligible distributions
Income Tax Act - Section 220 - Subsection 220(3.1) CRA may consider the delays until its approval of a s. 86.1 spin-off re s. 220(3.5) penalties
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 3, 2020-0851991C6 F - Shares Donation to a tax exempt entity & dividend Income Tax Act - Section 129 - Subsection 129(1.2) on an excepted gift of 10% of the shares of a CCPC to a public foundation and the shares’ redemption, s. 129(1.2) could deny the CCPC’s dividend refund
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 4, 2020-0851621C6 F - RRSP or RRIF on death – Joint election Income Tax Act - Section 146 - Subsection 146(8.1) a specific bequest of a RRSP proceeds to a surviving spouse cannot be treated as a refund of premiums
Income Tax Act - Section 146.3 - Subsection 146.3(6.1) specific bequest of RRIF is treated as passing through the estate’s hands, so that a s. 146.3(6.1) election is necessary
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 5, 2020-0851601C6 F - TFSA Exempt Contribution - Spousal Trust Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) bequest of TFSA to spousal trust which, in turn, distributed the TFSA proceeds per the will to the surviving spouse would qualify as an indirect transfer as a consequence of death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) indirect transfer made in accordance with deceased’s will would be as a consequence of death
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 6, 2020-0851631C6 F - Options d’achat d’actions - disposition au décès Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.01) s. 110(1)(d.01) deduction is unavailable for a s. 7(1)(e) benefit
Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(e) s. 110(1)(d.01) gift deduction is unavailable against a s. 7(1)(e) stock option benefit
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 7, 2020-0864341C6 F - SDA and Formula-Based Plans
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 8, 2020-0851641C6 F - Availability of tax information Income Tax Act - Section 45 - Subsection 45(3) record of prior CCA claims might possibly be included in the taxpayer’s Proof of Income going back to 1988, which is available on My Account for Individuals
2021-03-17 23 June 2020 External T.I. 2020-0849761E5 F - SSUC - Entité déterminée et institution publique
2021-03-10 23 June 2020 External T.I. 2020-0849211E5 F - SSUC - Entité déterminée et institution publique
23 June 2020 External T.I. 2020-0849221E5 F - SSUC - Entité déterminée et institution publique
2021-03-03 2 September 2020 External T.I. 2018-0738271E5 F - Taxable capital gain designation Income Tax Act - 101-110 - Section 104 - Subsection 104(21.2) the QSBC character of capital gains can be flowed out through 2 levels of personal trusts
2021-02-17 19 November 2020 External T.I. 2020-0848111E5 F - Remboursement d'équipement de bureau pour le télétravail Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) aggregate reimbursement during COVID exceeding $500 for teleworking office furniture and computer is taxable benefit
23 June 2020 External T.I. 2020-0848441E5 F - SSUC - Entité déterminée et institution publique Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c) regional county municipalities are municipalities
Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity an entity may be an eligible entity for CEWS purposes if it is not a public institution
2021-02-10 29 September 2020 External T.I. 2018-0757501E5 F - Crédit pour intérêts sur les prêts étudiants Income Tax Act - Section 118.62 capitalization of interest on a novation would constitute its payment – but novated loan would be a new non-student loan
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(d) capitalization of unpaid interest by way of novation constituted its payment
General Concepts - Payment & Receipt capitalization of interest on a novation under Quebec law would constitute its payment
2021-01-27 22 June 2020 External T.I. 2020-0848721E5 F - SSUC - Entité déterminée et institution publique Income Tax Act - Section 149 - Subsection 149(1.1) example of application of s. 149(1.1)
2021-01-20 17 August 2020 External T.I. 2016-0643631E5 F - Frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) where the employee alternates between a close and distant regular place of work, travel expenses to both locations are personal
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) commuting expenses to a 2nd more distant regular employer establishment were personal
2021-01-13 6 November 2020 Internal T.I. 2020-0865661I7 F - SSUC-moment de l'inclusion au revenu/CEWS-inclusion in income Income Tax Act - Section 125.7 - Subsection 125.7(3) CEWS amounts must generally be included in income under s. 9 or 12(1)(x) by the end of the CEWS periods in question even if not claimed until much later
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) s. 9 rather than 12(1)(x) could apply to CEWS, which would be included for the related period even if not applied for until much later
2020-12-23 3 November 2020 External T.I. 2020-0848881E5 F - SSUC/CEWS - rémunération admissible Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Remuneration - Paragraph (c) eligible remuneration is not reduced where the eligible entity on-charges a portion of its employees' time to an affiliate
2020-12-16 13 August 2020 Internal T.I. 2019-0818301I7 F - Taxable capital gain designation Income Tax Act - 101-110 - Section 104 - Subsection 104(21.2) the QSBC character of capital gains, including previous years’ reserves, can be flowed out in a 2-tier trust structure
2020-12-09 7 October 2020 APFF Roundtable Q. 18, 2020-0862931C6 F - 12(1)(x) and CEBA Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(hh) the parties can agree to allocate late CEBA loan repayments between the forgivable and non-forgivable loan components
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) bank lending under CEBA loan program is described in s. 12(1)(x)(i) and forgivable loan included on receipt
Income Tax Act - Section 12 - Subsection 12(2.2) s. 12(2.2) can be applied to non-deductible expenses/consequences of CEBA loan not being forgiven
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

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