Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2022-06-15 7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 7, 2021-0899681C6 F - Stock option, Short sale and Identical property Income Tax Act - Section 39 - Subsection 39(4) s. 39(4) election can apply to both the dispositions occurring in connection with short sale transactions
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 8, 2021-0899701C6 F - Post-mortem planning - Pipeline Income Tax Act - Section 84 - Subsection 84(2) a pipeline transaction can use an existing corporation rather than a Newco
Income Tax Act - Section 84.1 - Subsection 84.1(1) pipeline transaction can be structured to access hard ACB
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 9, 2021-0903501C6 F - RRSP overcontribution and RRIF withdrawal Income Tax Act - Section 204.2 - Subsection 204.2(1.2) - J an RRSP or RRIF withdrawal has an immediate impact on tax on the cumulative excess
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 10, 2021-0896101C6 F - Death of seg. fund policyholder - income allocatio Income Tax Act - Section 138.1 - Subsection 138.1(1) - Paragraph 138.1(1)(f) accrued income under a segregated fund is not deemed by s. 138.1(1)(f) to be a right or thing
Income Tax Act - Section 104 - Subsection 104(24) deeming of an amount to be payable for s. 104(24) purposes does not create a legal entitlement to it
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 11, 2021-0896021C6 - APFF Q.11 - T1135 and situs of cryptocurrencies Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) CRA is currently reviewing whether and when cryptocurrencies may not be foreign property
2022-06-08 7 October 2021 APFF Roundtable Q. 1, 2021-0900891C6 F - Tax treatment of employee share trust Income Tax Act - Section 7 - Subsection 7(2) s. 7(2) does not deem there to be an agreement to acquire shares
Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan the EBP rather than s. 7 rules applied to a share plan for employees where share distributions were discretionary
7 October 2021 APFF Roundtable Q. 2, 2021-0900901C6 F - TOSI and scenarios to recuperate the AMT Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (g) - Subparagraph (g)(ii) only amount in excess of reasonable return is not an excluded amount
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (d) TOSI rules inapplicable to loans to an individual
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income TOSI inapplicable to payment of excessive salary by one spouse’s company to the other spouse
7 October 2021 APFF Roundtable Q. 3, 2021-0900911C6 F - Entreprise exploitée par une fiducie Income Tax Act - Section 216 - Subsection 216(1) delegation of performance of landlord’s servicing responsibilities does not affect whether its rents are from a business or property
7 October 2021 APFF Roundtable Q. 4, 2021-0900921C6 F - Mind and management et statut de SPCC Income Tax Act - Section 123.3 use of foreign corporation with central management and control in Canada to avoid s. 123.3 tax could be GAARable
Income Tax Act - Section 245 - Subsection 245(4) using a foreign corporation with Canadian CMC to produce a lower tax rate on investment income could be GAARable
7 October 2021 APFF Roundtable Q. 5, 2021-0900951C6 F - Safe income and Part IV tax Income Tax Act - Section 55 - Subsection 55(2) Pt. IV and safe income exclusions under s. 55(2) can be doubled up
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) full use can be made of safe income even though there is an immediately subsequent use of Pt. IV tax exclusion
7 October 2021 APFF Roundtable Q. 6, 2021-0900961C6 - APFF Q.6 - Minimum Tax Carryover and TOSI Income Tax Act - Section 120.2 - Subsection 120.2(3) - Paragraph 120.2(3)(b) CRA will not retroactively adjust returns that relied on a form error permitting TOSI to increase additional tax carryforwards
General Concepts - Transitional Provisions and Policies CRA will honour incorrect AMT carryforward balances that arose due to an error in the CRA form
7 October 2021 APFF Roundtable Q. 7, 2021-0900971C6 F - Economic dependence Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) financial dependence as described in the jurisprudence is indicative but not dispositive of a non-arm’s length relationship
7 October 2021 APFF Roundtable Q. 8, 2021-0900981C6 F - Cost Recovery Method in IT-426R (Archived) Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) a limited partnership cannot use a cost recovery earnout
7 October 2021 APFF Roundtable Q. 9, 2021-0901101C6 F - Part IV tax exception vs eligible and non-eligible Income Tax Act - Section 55 - Subsection 55(2) payment of non-eligible dividend by an Opco with both NERDTOH and ERDTOH to Holdco avoids s. 55(2) if the resulting s. 186(1)(b) tax is not refunded as part of the same series
7 October 2021 APFF Roundtable Q. 10, 2021-0901001C6 - Application of subsection 184(3) and 185.1(3) Income Tax Act - Section 184 - Subsection 184(3) CRA generally will accept the concurrence by a share vendor to an s. 184(3) election in advance of the excessive eligible dividend being identified
Income Tax Act - Section 185.1 - Subsection 185.1(3) concurrence can be given to the election in a share sale agreement before the excessive eligible dividend designation is identified
7 October 2021 APFF Roundtable Q. 11, 2021-0901011C6 F - Application of subsection 98(3) Income Tax Act - Section 98 - Subsection 98(5) a post-wind up drop down transaction would preclude the application of s. 98(5)
Income Tax Act - Section 98 - Subsection 98(3) s. 98(3) could apply to wind-up of partnership with substantial goodwill
7 October 2021 APFF Roundtable Q. 14, 2021-0901041C6 F - Meaning of Any consideration received by Donee Income Tax Act - Section 118.1 - Subsection 118.1(13) - Paragraph 118.1(13)(c) “consideration … received” in s. 118.1(13)(c) includes a s. 84(3) deemed dividend
7 October 2021 APFF Roundtable Q. 15, 2021-0901051C6 F - Exemption pour résidence principale Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) the s. 40(2)(g) formula can be prejudicial where there is delayed home construction on vacant land
7 October 2021 APFF Roundtable Q. 16, 2021-0901061C6 F - 2021 APFF Q.16 - Disclosure of a counter letter Income Tax Act - Section 116 - Subsection 116(3) CRA may be willing to issue a letter confirming that no s. 116 certificate is required because the true vendor is a resident
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) failure to disclose a counter agreement is neglect or carelessness
7 October 2021 APFF Roundtable Q. 17, 2021-0901071C6 - Application of section 120.4 Income Tax Act - Section 120.4 - Subsection 120.4(1) - Arm's Length Capital - Paragraph (c) a capital dividend from a related business was not a source of arm’s length capital
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) exclusion where business from which the dividend was derived had ceased in a prior year
7 October 2021 APFF Roundtable Q. 18, 2021-0901091C6 - TOSI continuity rule for inherited property Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(b) - Subparagraph 120.4(1.1)(b)(ii) a dividend on shares that were distributed by an inter vivos trust, as directed in a will 15 years previously, can be excluded by s. 120.4(1.1)(b)(ii)
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(ii) s. 120.4(1.1)(b)(ii) can apply to shares distributed by inter vivos trust but as directed in will, so that (e)(ii) exclusion can apply
7 October 2021 APFF Roundtable Q. 19, 2021-0901121C6 F - APFF – ITR Remissions General Concepts - Audit, Filing and Assessment Procedure rate increase for rulings work
7 October 2021 APFF Roundtable Q. 20, 2021-0910491C6 F - ITRD internal evaluation process
2022-05-11 2021 Ruling 2020-0865901R3 F - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline involving a deferred distribution of portfolio assets from the corporation held on death
2022-04-20 16 July 2020 Internal T.I. 2019-0817271I7 F - Indemnités reçues à la suite de la négociation Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (e) compensation for loss of value to lands left after the government agreed to purchase a portion thereof, would constitute proceeds of disposition of such remainder
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) compensation paid to land owners for their restoration of the portion of their lands not sold to the government would be a s. 12(1)(x) receipt
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(f) compensation for damages to depreciable property would be included under s. 12(1)(f) rather than under proceeds of disposition, but the related repaid expenses would be deductible

Pages