Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-05-02 25 April 2003 External T.I. 2002-0171075 F - AVANTAGE-POLICE D'ASSURANCE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) s. 6(1)(a) benefit where employer, as policyholder, pays premiums on policy on life of employee, whose estate is the revocable beneficiary
Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) benefit where corporate policyholder pays premiums on policy on shareholder’s life where the revocable beneficiary is the shareholder’s estate
30 April 2003 External T.I. 2002-0172485 F - LIQUIDATION SOCIETE DE PERSONNES Income Tax Act - Section 85 - Subsection 85(3) taking back note for receivables transferred under s. 22 rather than s. 85(2) precludes s. 85(3) application to wind-up
29 April 2003 External T.I. 2002-0177065 F - CONFISCATION DE LA SOLDE Income Tax Act - Section 5 - Subsection 5(1) salary that is forfeited by RCMP officer for misconduct nonetheless is includible as salary which was constructively received
General Concepts - Payment & Receipt forfeited salary nonetheless includible as salary received
1 May 2003 Internal T.I. 2002-0178347 F - BENEFICES FABRICATION Income Tax Regulations - Regulation 5202 - Cost of Manufacturing and Processing Labour reimbursements of SR&ED expenses do not reduce cost of manufacturing and processing labour
Income Tax Regulations - Regulation 5202 - Qualified Activities no requirement that the SR&ED be connected to M&P
Income Tax Act - Section 9 - Expense Reimbursement reimbursements of SR&ED labour and other expenses did not reduce cost of labour
17 April 2003 Internal T.I. 2003-0181507 F - PRET SANS INTERET Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) accessing the exceptional circumstances test requires demonstrating “a sufficient connection between the interest-free loan and an indirect source of the person's income”
25 April 2003 Internal T.I. 2003-0181797 F - FRAIS JURIDIQUES-DECISION Income Tax Act - Section 60 - Paragraph 60(o.1) legal expenses incurred to recover loss to taxpayer’s RRSP from negligence of investment advisor, were non-deductible
2003-04-25 22 April 2003 External T.I. 2002-0169565 F - ACTIF UTILISE DANS L'ENTREPRISE Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) tax credits generated from an active business due to SR&ED expenditures or over-installing are assets used in that active business as per Ensite
2003-04-18 10 April 2003 External T.I. 2002-0152065 F - DEFINITION D'AGRICULTURE Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property goodwill of veterinary practice of servicing farmers did not constitute “qualified farm property”
Income Tax Act - Section 248 - Subsection 248(1) - Farming veterinary practice of providing medicine to livestock was not “farming”
11 April 2003 External T.I. 2002-0173065 F - REPAS FOURNIS COURS SEMINAIRES Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) s. 67.1(2)(a) exception applied to meals and snacks added to the cost of training courses provided in the ordinary course
10 April 2003 Internal T.I. 2002-0177767 F - INDEMNITE RECUE PAR UN ARTISTE Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (f) damages for infringement of an artist’s moral rights could be proceeds of disposition of a capital property
Income Tax Act - Section 248 - Subsection 248(1) - Property the moral rights of an artist were property
17 April 2003 Internal T.I. 2003-0006407 F - PRET SANS INTERET DEDUCTIBILITY INTERETS Income Tax Act - Section 20.1 - Subsection 20.1(1) s. 20.1(1)(b)(iv) can apply to money borrowed for an interest-free loan that was a source under the exceptional circumstances test
9 April 2003 External T.I. 2003-0011555 F - Application of 13(21.2) - Affil. Persons Income Tax Act - Section 13 - Subsection 13(21.2) likely terminal loss where corp. equally owned by A and B disposed of beneficial co-ownership interest to corp. in which their respective spouses held 25% by each of Mrs. A and Mrs. B
General Concepts - Agency CCRA tests for accepting the presence of an agency agreement, here, re property of a nominee
2003-04-11 2 April 2003 External T.I. 2002-0171215 F - FRAIS DE FINANCEMENT Income Tax Act - Section 18 - Subsection 18(3.1) treatment of CMHC guarantee fees and interest rate guarantee fee
4 April 2003 External T.I. 2002-0171635 F - PERTE APPARENTE Income Tax Act - Section 54 - Superficial Loss purchase within 30 days by daughter of share vendor did not engage the superficial loss rules
Income Tax Act - Section 40 - Subsection 40(3.3) purchase within 30 days by daughter of share vendor’s controlling shareholder did not engage the superficial loss rules
Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(a) father and daughter not affiliated
Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(b) corporation and daughter of its controlling shareholder not affiliated
4 April 2003 External T.I. 2002-0176305 F - DON PAR TESTAMENT Income Tax Act - Section 118.1 - Subsection 118.1(5) gift can be made by will to a foundation formed after testator’s death
9 April 2003 Internal T.I. 2003-0001597 F - FRAIS ACCESSOIRES Income Tax Act - Section 18 - Subsection 18(3.1) application of s. 18(3.1) to work on a rental property
2 April 2003 External T.I. 2003-0002285 F - FRAIS OBLIGATOIRE SERVICE INFORMATIQUE Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a) fees rendered by the university’s computer department for services are includible in tuition fees
1 April 2003 External T.I. 2003-0004125 F - Freeze by Paying a Stock Dividend Income Tax Act - Section 74.4 - Subsection 74.4(2) non-application to stock dividend
Income Tax Act - Section 15 - Subsection 15(1.1) s. 15(1.1) inapplicable to stock dividend paid to wholly-owning shareholder
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) imputed disposition to which s. 69(1)(b) applied where common shares issued at undervaluation to children’s trust
General Concepts - Effective Date price-adjustment clause to redemption value of preferred shares did not accord with IT-169
8 April 2003 Internal T.I. 2003-0004827 F - Avantage conféré par une fiducie-par. 105(1) Income Tax Act - 101-110 - Section 105 - Subsection 105(1) s. 105(1) benefit can be conferred by trust on a tenant who is not a beneficiary/ benefit to be based on fair rental value at the time the deceased entered into the lease
3 April 2003 External T.I. 2003-0006945 F - XXXXXXXXXX Other Legislation/Constitution - Federal - Indian Act - Section 87 Guideline 2 satisfied notwithstanding that Indian with reserve home needs to stay off the reserve for temporary work assignment
9 April 2003 External T.I. 2003-0008735 F - DONATION XXXXXXXXXX Income Tax Act - Section 248 - Subsection 248(31) guidelines in ITTN No. 26 followed
2003-04-04 17 March 2003 External T.I. 2002-0130685 F - Limite inférieure - JVM Participation Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Trust - Paragraph (g) meaning of vested indefeasibly
Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(4) purpose of s. 107.4(4)
24 February 2003 Internal T.I. 2002-0165537 F - Le détachement d'employés et l'article XV Treaties - Income Tax Conventions - Article 15 exemption in Art. 15 of US Treaty unavailable where Canadian employee seconded to US affiliate, which reimburses for his payroll
31 March 2003 External T.I. 2002-0171835 F - DON D'ACTIONS COTEES EN BOURSE Income Tax Act - Section 149.1 - Subsection 149.1(6.3) donation of Pubco shares to public foundation qualified as such given that s. 149.1(6.3) designation not effective until following year
Income Tax Act - Section 38 - Paragraph 38(a.1) donation of Pubco shares to public foundation qualified as such given that s. 149.1(6.3) designation not effective until following year
12 March 2003 External T.I. 2002-0176955 F - Retenu dividende français Treaties - Income Tax Conventions - Article 10 Canadian mutual fund trust or pension fund trust deemed to be the beneficial owner of dividends by Art. 29(7)(a) of the Canada-France Convention

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