Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-10-24 15 October 2003 External T.I. 2003-0014535 F - FRAIS DE GARDE D'ENFANTS Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense - Paragraph (d) fees for daycare at day sports camp could qualify
20 October 2003 External T.I. 2003-0014615 F - allocation non-imposable Income Tax Act - Section 6 - Subsection 6(16) - Paragraph 6(16)(a) per-kilometre rates published by Finance could be used for reasonableness purposes
16 October 2003 Internal T.I. 2003-0032537 F - EQUIVALENT POUR PERSONNE Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) young child could not claim credit for mother
10 October 2003 Roundtable, 2003-0035385 F - POLICE D'ASSURANCE CONTRE MALADIE GRAVE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose premiums on critical illness policy are non-deductible to the corporate policyholder even if it is the beneficiary
Income Tax Act - Section 15 - Subsection 15(1) corporate payment of premiums on critical illness policy for its sole shareholder generated taxable benefit
10 October 2003 Roundtable, 2003-0035645 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) Ludco and Singleton accepted/ description of how and why cash damming works
Income Tax Act - Section 16 - Subsection 16(1) interest imputed on a non-interest-bearing note issued at a discount consists of simple interest (annually deductible) and compound interest (deductible only at maturity)
10 October 2003 Roundtable, 2003-0035655 F - CBR D'UNE POLICE D'ASSURANCE TRANSFEREE Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis ACB addition, for gratuitous transfer of corporation’s life insurance policy under s. 148(7) to the insured shareholder/employee, equals excess of policy ACB over its CSV
Income Tax Act - Section 148 - Subsection 148(7) consequences of gratuitous transfer of corporation’s life insurance policy under s. 148(7) to the insured shareholder/employee
10 October 2003 Roundtable, 2003-0035665 F - TRANSFER D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 148 - Subsection 148(7) transfer to shareholder at policy’s FMV is not a “distribution”
10 October 2003 Roundtable, 2003-0035675 F - EVALUATION D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 70 - Subsection 70(5.3) unpaid policy loan to corporation is to be deducted in determining shares’ FMV if the accords with valuation principles
10 October 2003 Roundtable, 2003-0035685 F - DEDUCTION INTERETS MONTANT RAISON Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) reasonableness of interest rate assessed in light of comparable market rates and issue premiums
10 October 2003 Roundtable, 2003-0036865 F - TRANSFER DE POLICE D'ASSURANCE Income Tax Act - Section 15 - Subsection 15(1) benefit to shareholder on gratuitous transfer to it of critical illness policy entitled to refund of premiums on maturity
Income Tax Act - Section 148 - Subsection 148(7) s. 148(7) inapplicable to critical illness policy
General Concepts - Fair Market Value - Other FMV of critical illness policy takes refundable premium amount into account
10 October 2003 Roundtable, 2003-0037125 F - AVANCE SUR POLICE Income Tax Act - Section 148 - Subsection 148(9) - Policy Loan withdrawal can qualify as policy loan even if not named as such under the policy
10 October 2003 Roundtable, 2003-0037135 F - CONTRATS DE RENTE VIAGERE Income Tax Regulations - Regulation 301 - Subsection 301(1) annuity did not qualify as a "life annuity" where payments made to a corporation
10 October 2003 Roundtable, 2003-0037145 F - CONVENTION DE RETRAITE Income Tax Act - Section 207.6 - Subsection 207.6(2) - Paragraph 207.6(2)(d) deemed withdrawals from RCA through payment of insurance benefits not subject to tax under para. (d)
16 October 2003 External T.I. 2003-0038315 F - CONVENTION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement loan back to employer may negate RCA status
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) reasonableness of interest rate determined re market interest rates
2003-10-17 8 September 2003 External T.I. 2002-0163705 F - Choix Tardif Income Tax Act - Section 132.11 - Subsection 132.11(6) late designation can be requested pursuant to s. 220(3.2) in light of s. 220(3.21)(b)
Income Tax Act - Section 220 - Subsection 220(3.21) - Paragraph 220(3.21)(b) s. 220(3.21)(b) brings s. 132.11(6) within the s. 220(3.2) regime
23 September 2003 External T.I. 2002-0172175 F - Arrangements Funérailles - Provision 20(1)m) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) portion of prepaid funeral amount which the funeral home can use in its operations is income under s. 9, not s. 12(1)(a), for which no s. 20(1)(m) reserve can be claimed
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) prepaid funeral amounts which a funeral home was not required to hold in trust were s. 9, not s. 12(1)(a), income
25 September 2003 External T.I. 2002-0180905 F - Cessation de résidence-Conséquences fiscales Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) overview of consequences of emigration to Switzerland
12 September 2003 External T.I. 2003-0001335 F - Gain en Capital par une fiducie Income Tax Act - Section 104 - Subsection 104(21) s. 104(21) designation can be made even if non-taxable half of capital gain is retained by trust
3 October 2003 External T.I. 2003-0004575 F - ASSURANCE-INVALIDITE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose premiums paid by corporation for disability policy on shareholder-employee are non-deductible
Income Tax Act - Section 3 - Paragraph 3(a) disability benefits received by corporation for disability policy on shareholder-employee are not income
8 September 2003 Internal T.I. 2003-0010407 F - Gains et pertes sur change étranger Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) Gaynor applies in computing gain on disposition of US securities
Income Tax Act - Section 39 - Subsection 39(2) s. 39(2) applies to interest on US mortgage
29 September 2003 Internal T.I. 2003-0027347 F - FRAIS MEDICAUX DEPLACEMENT Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(h) travel and accommodation expenses of parents in order to be near their hospitalized child were not covered
17 September 2003 External T.I. 2003-0027555 F - REER JUGES Income Tax Act - Section 146 - Subsection 146(1) - RRSP Deduction Limit computation of RRSP deduction limit for federal judges
3 October 2003 External T.I. 2003-0028385 F - EXONERATION DU REVENU IMPOSABLE Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.3) non-share corporations do not have shares
3 October 2003 External T.I. 2003-0030585 F - PENSIONS ETRANGERES Treaties - Income Tax Conventions - Article 18 degree of exemption for social security pension payments from Germany, Belgium or France
2 October 2003 Internal T.I. 2003-0031747 F - paiement pour service de volontaire Income Tax Act - Section 81 - Subsection 81(4) $1,000 cap is multiplied by the number of payers
2 October 2003 External T.I. 2003-0033415 F - FRAIS D'ACCES INTERNET Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement of high-speed internet access fees to employees who must work from home likely not a taxable benefit
6 October 2003 External T.I. 2003-0040145 F - TRANSFERT D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 148 - Subsection 148(7) loss on transfer of universal life policy to wholly-owned subsidiary not recognized
Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis - Element A no taxable benefit when life insurance policy transferred to wholly-owned corporation at less than its FMV
Income Tax Act - Section 246 - Subsection 246(1) no taxable benefit when life insurance policy transferred to wholly-owned corporation at less than its FMV
24 September 2003 Internal T.I. 2003-0184097 F - perte au titre de placement Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) Byram accepted: NIB loan can be made with a view to dividends

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