Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
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
Statutory Interpretation - Ordinary Meaning clearly expressed legislative text to be followed, even though contrary to more favourable Finance intent
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
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))
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
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
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
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
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
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 - 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
Income Tax Act - 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
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
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
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
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
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
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)
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 - 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 - 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

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