2003-06-13 |
3 June 2003 Internal T.I. 2003-0181487 F - DEDUCTIBILITE DES INTERETS GARANTIE |
Income Tax Act - Section 20.1 - Subsection 20.1(1) |
s. 20.1(1)(b)(iv) deductibility where guarantee of wholly-owned corporation’s debt given for income-producing purpose is satisfied with borrowed money and subrogated claim is worthless |
2003-06-06 |
30 May 2003 Internal T.I. 2003-0000117 F - ALLOCATION AUTOMOBLE VERSÉE |
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) |
allowance, or reimbursement for non-partnership expense, is treated as a distribution reducing the partner’s ACB |
2003-06-06 |
30 May 2003 Internal T.I. 2003-0000117 F - ALLOCATION AUTOMOBLE VERSÉE |
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(a) |
fees, and usually "loan" interest, paid to a partner will be treated as draws rather than deductible expenses |
2003-06-06 |
30 May 2003 Internal T.I. 2003-0000117 F - ALLOCATION AUTOMOBLE VERSÉE |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) |
a loan by a partner to the partnership may be treated as a loan rather than a contribution of capital in special circumstances |
2003-06-06 |
30 May 2003 External T.I. 2003-0006005 F - EQUIVALENT TO SPOUSE |
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) - Subparagarph 118(1)(b)(i) |
s. 118(1)(b)(i) test unlikely to be satisfied where one of couple is incarcerated |
2003-06-06 |
3 June 2003 External T.I. 2003-0012075 F - Safe Income and 104(13.1) Designation |
Income Tax Act - Section 55 - Subsection 55(2) |
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2003-06-06 |
3 June 2003 External T.I. 2003-0012075 F - Safe Income and 104(13.1) Designation |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
income retained by a trust under s. 104(13.1) and then distributed to its corporate beneficiary was not included in the latter’s safe income |
2003-06-06 |
3 June 2003 Internal T.I. 2003-0019087 F - Calculation of 163(1) Penalty - Capital Gain |
Income Tax Act - Section 163 - Subsection 163(1) |
penalty computed on taxable capital gain, not capital gain |
2003-06-06 |
30 May 2003 External T.I. 2003-0182145 F - AVANTAGE IMPOSABLE-VOYAGE |
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) |
no taxable benefit re free trip for a customer’s employee where employee spends at least 50% of the time on business-related activities |
2003-05-30 |
15 April 2003 External T.I. 2002-0139305 F - Immigration |
Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(c) |
ss. 128.1(1)(b) and (c), unlike former s. 48(3), apply also for CCA/recapture purposes |
2003-05-30 |
15 April 2003 External T.I. 2002-0139305 F - Immigration |
Income Tax Act - Section 126 - Subsection 126(1) |
FTC can be generated where recapture of depreciation, and denied capital loss, are realized on a US rental building |
2003-05-30 |
15 April 2003 External T.I. 2002-0139305 F - Immigration |
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) |
step-up of partnership interest on immigration to Canada neutralized the capital gain on partnership property when partnership wound up |
2003-05-30 |
5 May 2003 External T.I. 2002-0140805 F - Arrangements funéraire - Provision de 20(1)m) |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) |
non-refundable prepaid funeral amounts not held in trust were not eligible for the reserve |
2003-05-30 |
23 April 2003 External T.I. 2002-0155125 F - Rétribution Questionnaires - Actionnaires |
Income Tax Act - Section 67 |
scenario including non-resident corporation did not comply with ITTN No. 22 |
2003-05-30 |
23 May 2003 External T.I. 2002-0172205 F - FIDUCIE DE BIEN-RE&S |
Income Tax Act - Section 18 - Subsection 18(9) - Paragraph 18(9)(a) - Subparagraph 18(9)(a)(iii) |
s. 18(9)(a)(iii) likely applies where employer makes a payment to a trust which uses insurance to fund employee health services |
2003-05-30 |
27 May 2003 External T.I. 2002-0176485 F - regime d'assurance-salaire |
Income Tax Act - Section 15 - Subsection 15(1) |
s. 15(1) benefit (e.g., from corporation paying premiums under wage loss replacement plan for shareholder) cannot be reduced by the shareholder repaying the benefit |
2003-05-30 |
26 May 2003 External T.I. 2002-0180455 F - MODIFICATION D'UNE POLICE EXONEREE |
Income Tax Regulations - Regulation 306 - Subsection 306(1) |
question of fact for insurer whether splitting a policy terminates its exempt status |
2003-05-30 |
21 May 2003 Internal T.I. 2003-0001407 F - DISPOSITIONS SUBJECT TO WARRANTY |
Income Tax Act - Section 42 |
s. 42 applied to payment of claim of purchaser based on latent defect in property and to legal fees |
2003-05-30 |
26 May 2003 Internal T.I. 2003-0002297 F - Fonds commun de placement-Dépenses gén. |
Income Tax Act - 101-110 - Section 104 - Subsection 104(6) |
allocation of expenses permitted to maximize dividend tax credits of MFT beneficiaries |
2003-05-30 |
26 May 2003 Internal T.I. 2003-0002297 F - Fonds commun de placement-Dépenses gén. |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) |
s. 20(1)(bb) deductibility does not turn on the evaluated security being acquired |
2003-05-23 |
15 May 2003 External T.I. 2002-0168445 F - frais de location-voiture |
Income Tax Act - Section 67.3 - Paragraph 67.3(d) |
“manufacturer's list price" references "manufacturer's suggested retail price," and does not include federal and provincial sales tax |
2003-05-23 |
13 May 2003 Internal T.I. 2003-0001787 F - CHOIX-IMPACT SUR FNACC |
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e.1) |
notwithstanding Finance’s intent, s. 104(19) election resulted in subsequent recapture |
2003-05-23 |
13 May 2003 Internal T.I. 2003-0001787 F - CHOIX-IMPACT SUR FNACC |
Statutory Interpretation - Ordinary Meaning |
clearly expressed legislative text to be followed, even though contrary to more favourable Finance intent |
2003-05-23 |
13 May 2003 Internal T.I. 2003-0002167 F - TRAVAIL TEMPORAIRE |
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) |
test of work of a temporary nature not met where appointment as a director could be readily renewed through re-election |
2003-05-23 |
21 May 2003 Internal T.I. 2003-0009897 F - COUT DES ACTIONS |
Income Tax Act - Section 112 - Subsection 112(5.2) - Variable B |
“cost” in B refers to the original cost (computed without reference to s. 142.5(2)(b)) |
2003-05-23 |
15 May 2003 Internal T.I. 2003-0010237 F - COUT EN MAIN-D'OEUVRE |
Income Tax Regulations - Regulation 5202 - Salaries and Wages |
“salaries and wages” do not include tips |
2003-05-23 |
14 May 2003 External T.I. 2003-0015625 F - Convertible Debenture - Safe Income |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
holder of convertible debenture could be attributed safe income respecting the common shares into which it subsequently converted |
2003-05-23 |
14 May 2003 Internal T.I. 2003-0181477 F - DEDUCTIBILITE DES INTERETS |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) |
deductible interest is reduced by amortization of premium arising from loan’s deliberate issuance at above-market interest rate |
2003-05-23 |
14 May 2003 Internal T.I. 2003-0181477 F - DEDUCTIBILITE DES INTERETS |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) |
taxpayer discretion re attributing use of commingled funds does not apply where tracing is possible |
2003-05-16 |
13 May 2003 External T.I. 2002-0176525 F - CHANTIER DE CONSTRUCTION |
Income Tax Act - Section 6 - Subsection 6(6) |
W2 amounts likely not an appropriate basis for establishing proper s. 6(6) allowance amounts |
2003-05-16 |
16 May 2003 External T.I. 2002-0178685 F - CALCUL DU COUT D'UN TITRE DE CREANCE |
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(l) |
accrued interest initially included in ACB |
2003-05-16 |
16 May 2003 External T.I. 2002-0178685 F - CALCUL DU COUT D'UN TITRE DE CREANCE |
Income Tax Act - Section 20 - Subsection 20(14) |
overview of s. 20(14) and s. 53(2)(l) |
2003-05-09 |
7 May 2003 External T.I. 2002-0164995 F - SENS DE ENSEMBLE DES BENEFICIE |
Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Beneficiary |
whether meaning of “beneficiary” outside ss. 104-108 includes those in the class who have not been designated depends on the context |
2003-05-09 |
7 May 2003 External T.I. 2002-0164995 F - SENS DE ENSEMBLE DES BENEFICIE |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(c) - Subparagraph 110.6(14)(c)(ii) |
“all of the beneficiaries” only references those of the potential class who have been designated as beneficiaries |
2003-05-09 |
23 April 2003 Internal T.I. 2003-0008767 F - Benefits Conferred on Shareholders |
Income Tax Act - Section 15 - Subsection 15(1) |
shareholder benefit where house sold to shareholder at a loss attributable to its having been built to his luxury specifications |
2003-05-09 |
23 April 2003 Internal T.I. 2003-0008767 F - Benefits Conferred on Shareholders |
Income Tax Act - Section 54 - Personal-Use Property |
house provided for use of the corporation’s shareholder (giving rise to s. 15(1) benefit) was personal-use property |
2003-05-09 |
23 April 2003 Internal T.I. 2003-0008767 F - Benefits Conferred on Shareholders |
Income Tax Act - Section 46 - Subsection 46(4) |
policy of s. 46(4) supported the finding of a shareholder benefit when personal-use property of corporation sold at a loss (representing luxury elements that did not add value) to its shareholder |
2003-05-09 |
6 May 2003 External T.I. 2003-0181495 F - DEDUCTIBILITY DES INTERETS |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) |
post-Ludco, CRA accepts that interest borrowed at a rate higher than the fixed-return for the investment, is generally deductible |
2003-05-09 |
7 May 2003 External T.I. 2003-0182755 F - Superficial Loss on Shares |
Income Tax Act - Section 54 - Superficial Loss |
transactions for sale by individual to her husband circumvented s. 40(2)(g)(i) through the sale by him back to her RRSP, and could be GAARable |
2003-05-09 |
7 May 2003 External T.I. 2003-0182755 F - Superficial Loss on Shares |
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iv) - Clause 40(2)(g)(iv)(B) |
sale by individual to her husband followed by immediate sale by him to her RRSP, circumvented s. 40(2)(g)(iv)(B) |