Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-10-17 3 October 2003 External T.I. 2003-0028385 F - EXONERATION DU REVENU IMPOSABLE Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.3) non-share corporations do not have shares
3 October 2003 External T.I. 2003-0030585 F - PENSIONS ETRANGERES Treaties - Income Tax Conventions - Article 18 degree of exemption for social security pension payments from Germany, Belgium or France
2 October 2003 Internal T.I. 2003-0031747 F - paiement pour service de volontaire Income Tax Act - Section 81 - Subsection 81(4) $1,000 cap is multiplied by the number of payers
2 October 2003 External T.I. 2003-0033415 F - FRAIS D'ACCES INTERNET Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement of high-speed internet access fees to employees who must work from home likely not a taxable benefit
6 October 2003 External T.I. 2003-0040145 F - TRANSFERT D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 148 - Subsection 148(7) loss on transfer of universal life policy to wholly-owned subsidiary not recognized
Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis - Element A no taxable benefit when life insurance policy transferred to wholly-owned corporation at less than its FMV
Income Tax Act - Section 246 - Subsection 246(1) no taxable benefit when life insurance policy transferred to wholly-owned corporation at less than its FMV
24 September 2003 Internal T.I. 2003-0184097 F - perte au titre de placement Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) Byram accepted: NIB loan can be made with a view to dividends
2003-10-10 11 September 2003 Internal T.I. 2003-0026217 F - Report de Pertes du de Cujus Income Tax Act - Section 111 - Subsection 111(2) net capital loss in year before death could be carried back rather than applied against all income in the two s. 111(2) years
25 September 2003 Internal T.I. 2003-0032837 F - Market Maker: Reserve Account for Losses Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) payment of deferred commission amounts held as contingency loss reserve from old employer to new employer was a payment of “remuneration” subject to withholding
General Concepts - Payment & Receipt constructive receipt by employee where reserve loss account (funded out of commissions) is transferred from old brokerage employer to new brokerage employer
2003-10-03 11 September 2003 External T.I. 2003-0010375 F - MONTANT RECU D'UN ORDRE RELIGIEUX Income Tax Act - Section 6 - Subsection 6(3) amount paid to a member departing a religious order
24 September 2003 External T.I. 2003-0028145 F - DON FAIT PAR UN PARTICULIER NON-RESIDENT Income Tax Act - Section 118.1 - Subsection 118.1(3) non-resident can carry forward a credit five years to when Canadian residence is acquired
11 September 2003 External T.I. 2003-0029145 F - CREDIT D'IMPOT POUR DON Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts meaning of gift under Quebec civil law
11 September 2003 External T.I. 2003-0032975 F - DON A UN PETIT-FILS HANDICAPE Income Tax Act - Section 74.1 - Subsection 74.1(2) s. 74.1(2) applies irrespective of child’s physical or mental condition
15 September 2003 External T.I. 2003-0033405 F - CONVENTION DE RETRAITE INTERETS COURUS Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax - Paragraph (b) computation of refundable tax includes income under application of s. 12(9) to stripped coupons
15 September 2003 External T.I. 2003-0034195 F - ALLOCATION DE RETRAITE Income Tax Act - Section 60 - Paragraph 60(j.1) employee purchase of back years of service with a related employer permitted
General Concepts - Agency common law Crown agency test applied for determining whether current and previous employers were related employers
30 September 2003 External T.I. 2003-0035725 F - MONTANT RELATIF AUX ETUDES Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Student - Paragraph (d) meaning of post-secondary
Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Student - Paragraph (a) portion of month can be counted provided that 12 hours (including course practical work) expended in that portion
23 September 2003 External T.I. 2003-0035905 F - REG 4900(3) Income Tax Regulations - Regulation 4900 - Subsection 4900(3) employee can designate a survivor benefit in the annuity contract
2003-09-19 15 September 2003 Internal T.I. 2003-0013357 F - ALLOCATION RECUE PAR UN BENEVOLE Income Tax Act - Section 5 - Subsection 5(1) volunteer driver was not an employee
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit volunteer driver with high activity level likely was engaged in a business
16 September 2003 Internal T.I. 2003-0023957 F - Droits et biens crédit personne mariée Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(a) income of deceased from rights or things (included in separate return) is excluded from income for s. 118(1)(a) purposes
Income Tax Act - Section 70 - Subsection 70(2) deemed separate nature of person for rights and things return
15 September 2003 External T.I. 2003-0028075 F - Definition of "Specified Class" Sub 256(1.1) Income Tax Act - Section 256 - Subsection 256(1.1) - Paragraph 256(1.1)(b) taking away of voting rights by shareholders agreement did not satisfy s. 256(1.1)(b)
2003-09-12 18 July 2003 External T.I. 2002-0162985 F - Renonciation et bénéficiaire Income Tax Act - Section 75 - Subsection 75(2) renunciation by transferor of capital interest (but not of income interest) may avoid s. 75(2)(a)(i) if not done in advance of transfer
Income Tax Act - Section 107 - Subsection 107(4.1) - Paragraph 107(4.1)(b) s. 107(4.1)(b) exclusion applicable if s. 75(2) was applicable at any time
26 June 2003 Internal T.I. 2002-0169607 F - Sécurité sociale française Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax French payroll taxes and social security contributions qualified as non-business income taxes
2 July 2003 External T.I. 2002-0180015 F - Usufruit d'un immeuble Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) - Subparagraph 69(1)(b)(i) application of s. 69(1)(b)(i) on transfer of individual’s property to a corporation with him having the usufruct
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) transferor to a deemed s. 248(3) trust who receives a usufruct does not deal at arm’s length with the trust
Income Tax Act - Section 105 - Subsection 105(1) no benefit re use of personal-use property
1 August 2003 Internal T.I. 2003-0009697 F - Usufruit et amortissement Income Tax Act - Section 248 - Subsection 248(3) s. 248(3) generates CCA claim to deemed trust, whereas previously no CCA was available
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) bare owner not entitled to claim CCA on property even if s. 248(3) does not apply
22 July 2003 Internal T.I. 2003-0018027 F - Fondation du Liechtenstein Income Tax Act - Section 248 - Subsection 248(1) - Corporation Liechtenstein sifting was a corporation rather than trust
Income Tax Act - Section 95 - Subsection 95(1) - Controlled Foreign Affiliate Liechtenstein sifting in which the resident individual had a life interest was to be treated as a 100% CFA
Income Tax Act - Section 94 - Subsection 94(3) Liechtenstein siftung was corporation, not trust
29 August 2003 Internal T.I. 2003-0018497 F - L'Année d'imposition diffère Income Tax Act - Section 126 - Subsection 126(1) foreign tax paid for different foreign taxation year should be prorated based on the proportions of income earned in the Canadian taxation years
28 August 2003 Internal T.I. 2003-0019767 F - Investissement dans une société étrangère Income Tax Act - Section 95 - Subsection 95(1) - Controlled Foreign Affiliate redeemable convertible rights of a Canco investor in Foreignco were not shares, so that Foreignco was not a CFA
Income Tax Act - Section 17 - Subsection 17(1) redeemable convertible rights of a Canco investor in Foreignco had not been redeemed, so that they were not debt for s. 17 purposes and Foreignco was not a CFA

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