Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-07-11 27 June 2003 External T.I. 2003-0019095 F - RACHAT DE SERVICES PASSES Income Tax Act - Section 147.2 - Subsection 147.2(4) - Paragraph 147.2(4)(c) overview of ss. 147.2(4)(b) and (c)
25 June 2003 External T.I. 2003-0024465 F - PARTIE XI.1 BIENS NON-ADMISSIBLES Income Tax Act - Section 207.1 - Subsection 207.1(1) no discretion in CCRA to waive the tax under s. 207.1
30 June 2003 External T.I. 2003-0182875 F - TRANSFERT DE POLICE D'ASSURANCE Income Tax Act - Section 15 - Subsection 15(1) benefit where permanent life or critical illness policy transferred gratuitously to shareholder as new policyholder
Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis ACB bump on policy distribution to shareholder equal to s. 15 benefit excess over CSV
Income Tax Act - Section 52 - Subsection 52(1) ACB bump on policy distribution to shareholder equal to s. 15 benefit in excess of ACB otherwise determined – even in absence of s. 52(1)
2003-07-08 7 July 2003 External T.I. 2001-0091415 F - Income & Losses from Bus. or Prop. Sec. 9 ITA Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) prepaid crypt fees of funeral home were includible under s. 12(1)(a)
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) prepaid crypt fees of funeral home were ineligible for s. 20(1)(m) reserve
26 June 2003 External T.I. 2003-0021595 F - Distribution of Corporate Property Income Tax Act - 101-110 - Section 107 - Subsection 107(2.1) illustration of application, by virtue of s. 107(2.001) election, of s. 107(2.1) to distribution of CCPC shares
Income Tax Act - Section 84 - Subsection 84(2) s. 84(2) inapplicable to s. 107(2.1) wind-up of trust holding a Portfolioco followed by an inter vivos pipeline transaction re Portfolioco
Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time s. 107(2.1) wind-up of trust holding a Portfolioco would trigger a safe-income determination time if with a view to an inter vivos pipeline transaction with a s. 88(2) wind-up of Portfolioco
16 July 2003 Internal T.I. 2003-0024617 F - DEDUCTIBILITE DES COTISATIONS CSST Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) estimated workers’ compensation premium liabilities were currently deductible
2003-07-04 29 May 2003 External T.I. 2002-0160795 F - Crédit d'impôt étranger et pertes Income Tax Act - Section 20 - Subsection 20(12) whether to amend a return to permit a s. 20(12) deduction where a loss carryback to that year has eliminated the s. 126(1) credit is in the CRA’s discretion
24 June 2003 External T.I. 2002-0169405 F - Projet d'ingénierie Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) - Subparagraph 122.3(1)(b)(i) - Clause 122.3(1)(b)(i)(B) training activity was not an “engineering activity”
24 June 2003 External T.I. 2002-0177145 F - AVANTAGE IMPOSABLE - REPAS Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) requirement to watch the children did not detract from taxability of free lunch
4 June 2003 Internal T.I. 2003-0006967 F - Province de résidence d'une fiducie Income Tax Act - Section 2 - Subsection 2(1) Thibodeau applied to find that trust with Quebec trustee therefore was resident in Quebec
Income Tax Act - Section 120 - Subsection 120(2) Quebec abatement available even where no Quebec tax was payable on the income (due to abuse of s. 104(13.1) election)
Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit scheme generating Quebec abatement without payment of any Quebec tax did not result in a “tax benefit”
Income Tax Act - Section 75 - Subsection 75(2) s. 75(2)(a)(i) inapplicable re settlor being beneficiary of trust beneficiary’s estate/ s. 75(2)(b) inapplicable re power of settlor to replace trustees
2003-06-27 24 June 2003 External T.I. 2002-0176475 F - DOMMAGES-INTERETS PROFESSIONEL Income Tax Act - Section 8 - Subsection 8(2) personal liability for damages in excess of liability coverage not deductible given s. 8(2)
Income Tax Act - Section 8 - Subsection 8(5) - Paragraph 8(5)(b) professional liability insurance premiums deductible under s. 8(5)(b)
23 June 2003 External T.I. 2003-0004795 F - TRANSPORT AU LIEU D'EMPLOI Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) mandatory employer-provided transport from staging area along difficult road to remote mine was not a taxable benefit
19 June 2003 Internal T.I. 2003-0021297 F - LOI SUR L'ACCISE PENALITES INTERETS Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose GST/HST interest deductible if incurred re deductible expenditure/ penalties may also be deductible
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(t) GST/HST interest and penalties are deductible based on application of ordinary principles
2003-06-20 16 June 2003 Internal T.I. 2003-0007867 F - COMPENSATION LORS DU DECES D'UN PARENT
Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(g.1) compensation for loss of financial support due to parental death did not qualify
10 June 2003 External T.I. 2003-0017065 F - Disp. of Property owned on Dec 31, 71 Income Tax Act - Section 85 - Subsection 85(5) the capital cost is not reduced by s. 85(5) for non-CCA/recapture purposes
Income Tax Application Rules - Subsection 20(1) 2 detailed examples of the application of ITAR 20(1)
10 June 2003 External T.I. 2003-0018915 F - Attribution - Transfers & Loans to Corp. Income Tax Act - Section 74.5 - Subsection 74.5(6) s. 74.5(6) applied to an estate-freeze exchange by individual’s Holdco of Opco common shares for preferred shares so that family trust could subscribe for Opco common shares
12 June 2003 External T.I. 2003-0019725 F - Sale of Holding' Shares to OPCO Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) 3 unrelated individuals likely acting in concert where they act without separate interests to achieve a basis step-up re transactions that are irrelevant to the business of the other party (Opco)
Income Tax Act - Section 84.1 - Subsection 84.1(1) s. 84.1 likely applicable re transaction in which 3 unrelated individuals act in concert to step up shares in Opco
16 June 2003 External T.I. 2003-0020895 F - Association/Convertible Property Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) where multiple debenture holders hold convertible debentures, s. 256(1.4)(a) is to be applied as if all the debentures were exercised (so that each debenture holder is diluted by the others)
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) where multiple debenture holders hold convertible debentures, s. 256(1.4)(a) is to be applied as if all the debentures were exercised simultaneously
13 June 2003 External T.I. 2003-0184285 F - ALLOCATION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance if no guarantee or offer of new employment, the individual has retired
2003-06-13 11 June 2003 External T.I. 2002-0175975 F - TRANSFERT-ENT. EXPLOITEE ACTIVEMENT Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(ii) application of 24-month test where assets of business transferred to partnership of individuals, transferred to corporation under s. 95(2), partnership wound-up under s. 98(3) and shares sold
Income Tax Act - Section 79.1 - Subsection 79.1(6) - Paragraph 79.1(6)(b) meaning of expenses incurred to protect creditor's rights
13 June 2003 External T.I. 2002-0177045 F - BOISSONS OFFERTES AUX EMPLOYES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) FMV of free beverages marketed by employer and provided to its employees included in their income
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) FMV of free beverages provided to employees included in their income, so that cost of beverages to employer deductible from its income
27 May 2003 Internal T.I. 2003-0005357 F - TRANSFERT DE PROPRIETE EFFECTIVE Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (e) whether a preliminary transfer of shares of the target to spouse represented a disposition to her turned on whether there was a transfer of ownership under the Civil Code
15 May 2003 Internal T.I. 2003-0014507 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest deductible on money borrowed to acquire non-dividend-paying common shares
3 June 2003 Internal T.I. 2003-0181487 F - DEDUCTIBILITE DES INTERETS GARANTIE Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) guarantee of wholly-owned corporation’s debt given for income-producing purpose is satisfied with borrowed money on which interest may be deductible

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