Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-11-14 3 November 2003 Internal T.I. 2003-0044817 F - Copies of Electronic Documents Income Tax Act - Section 231.1 - Subsection 231.1(1) CCRA auditors may take electronic copies of taxpayer records
5 November 2003 External T.I. 2003-0045085 F - Section 159-Payments on Behalf of Others159(2) Income Tax Act - Section 159 - Subsection 159(2) trustee in bankruptcy must be acting in that capacity for that exception to apply
2003-11-07 27 October 2003 Internal T.I. 2003-0022887 F - CII-PECHEURS Income Tax Act - Section 127 - Subsection 127(9) - Specified Percentage - Paragraph (a) - Subparagraph (a)(iii) Gaspé Peninsula includes St. Lawrence
29 October 2003 External T.I. 2003-0026355 F - ECHANGE D'ACTIONS Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(i) s. 110.6(14)(f)(i) applies to shares issued as part consideration for shares of a different class transferred to the corporation on a dirty s. 85 exchange
30 October 2003 External T.I. 2003-0037465 F - Subsections 40(3.3) & 40(3.4) Income Tax Act - Section 40 - Subsection 40(3.4) non-application of s. 40(3.4) where taxpayer acquires then immediately disposes of an additional block/ application of formula where it partially dips into existing block
5 November 2003 Internal T.I. 2003-0037977 F - FRAIS POUR ANNULER UNE OFFRE D'ACHAT Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) legal fees incurred to defend a repudiation of a purchase contract might be a disposition expense (of the rights to purchase)
31 October 2003 Internal T.I. 2003-0040997 F - CHANTIER PARTICULIER REPAS CONJOINT Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) s. 6(6)(a) does not extend to covering meal expenses of visiting spouses
4 November 2003 External T.I. 2003-0042295 F - CONVENTION DE RETRAITE REVENU D'INTERET Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax - Paragraph (b) requirement to include interest income under s. 12 in computing refundable tax at end of year
31 October 2003 External T.I. 2003-0045795 F - DEDOMMAGEMENT POUR PERTE DE REVENU Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) Quebec government compensation to pension plan members for cessation of employer contributions was not itself pension or other income
Income Tax Act - Section 3 - Paragraph 3(a) lump sum government compensation for loss of employer pension plan contributions was not income from a source
2003-10-31 29 October 2003 External T.I. 2003-0006505 F - REGIME D'ASSURANCE SALAIRE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) criteria for determining whether there are separate plans
20 October 2001 External T.I. 2003-0007015 F - RESSOURCE INTERMEDIAIRE Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) amounts received for accommodating disabled individuals in the taxpayer’s home were exempted
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) amounts received for accommodating disabled individuals in the taxpayer’s home would not engage s. 45(1)(c) if they were exempted under s. 81(1)(h)
23 October 2003 External T.I. 2003-0017935 F - BIEN AGRICOLE ADMISSIBLE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property rebate of municipal taxes reduces the farming expense rather than constituting gross revenue from farming
Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue rebate of municipal taxes reduced that business expense rather than constituting gross revenue
Income Tax Act - Section 9 - Expense Reimbursement reimbursement of business expense reduces the expense rather than being included in gross revenue
15 October 2003 External T.I. 2003-0030905 F - Associated Corporations and 129(6) Income Tax Act - Section 256 - Subsection 256(2) s. 256(2) election does not affect the operation of s. 129(6)
29 October 2003 External T.I. 2003-0033435 F - CREDIT POUR INTERET SUR PRETS ETUDIANTS Income Tax Act - Section 118.62 exclusion for amount paid in satisfaction of a judgment applies to interest that was paid during the course of the legal proceedings resulting in the judgment
29 October 2003 External T.I. 2003-0037435 F - REMBOURSEMENT DE PAIMENTS D'UN REEE Income Tax Act - Section 146.1 - Subsection 146.1(2) subscriber can assign or pledge the right to receive repayments of payments
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)

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