Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-08-01 22 July 2003 External T.I. 2002-0175715 F - GAIN EN CAPITAL RESIDENCE PRINCIPALE Income Tax Act - Section 54 - Principal Residence - Paragraph (e) Quebec agricultural lands controls would not have precluded the taxpayer from acquiring only ½ hectare for principal residence use
21 July 2003 External T.I. 2002-0180465 F - CATEGORIES 8 ET 43 Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b) “solely” has a narrow meaning and might not be satisfied where the improvement was to comply with health standards regulation
29 July 2003 External T.I. 2003-0009115 F - FRAIS DE DEMENAGEMENT Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation moving to a new employer in the same building (with longer hours) potentially could be grounds for an eligible relocation
29 July 2003 External T.I. 2003-0012335 F - PLACEMENT A RENDEMENT PROGRESSIF Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(c) accommodation of contingently slightly-increasing interest rate no longer applicable
10 July 2003 Internal T.I. 2003-0018897 F - INTERET-REVENU RAJUSTE TIRE ENTREPRISE Income Tax Regulations - Regulation 5202 - Adjusted Business Income interest on tax refund generated from active business was active business income/ Ensite principle generally does not apply to inter-affiliate interest
28 July 2003 External T.I. 2003-0026395 F - PLACEMENT ADMISSIBLE REEE Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (e) disposition on transfer of shares to registered plan
2003-07-25 14 July 2003 Internal T.I. 2003-0016677 F - BONIS A PAYER ET BENEFICES MARGINAUX Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense obligation of corporation to pay bonuses out of annual profits could be established by oral agreement and book entries
15 July 2003 Internal T.I. 2003-0023177 F - DATE D'EXECUTION Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(iv) ascertainment of whether a commencement day based on the parties’ apparent intentions
9 July 2003 External T.I. 2003-0183675 F - VENTE D'UNE LISTE DE CLIENTS Income Tax Act - Section 24 - Subsection 24(1) loss under s. 24(1)(a) where maximum sales price (equaling FMV) for sold client list is not achieved
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) application of s. 12(1)(g) only to excess participating sales price for client list over minimum, or where there is a maximum equaling the client list’s FMV
2003-07-11 13 June 2003 External T.I. 2002-0156435 F - ASSURANCE DE MALADIES REDOUTEES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) taxable benefit from critical illness coverage if it is incidental to life insurance coverage
Income Tax Act - Section 248 - Subsection 248(1) - Group Term Life Insurance Policy group life insurance policy that includes critical illness coverage is not a "group term life insurance policy"
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (e) critical illness benefit paid under a life insurance policy is proceeds of disposition
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 - 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)

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