Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-04-18 10 April 2003 Internal T.I. 2002-0177767 F - INDEMNITE RECUE PAR UN ARTISTE 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 - 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 - Section 108 - Subsection 108(1) - Trust - Paragraph (g) meaning of vested indefeasibly
Income Tax Act - 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
24 March 2003 Internal T.I. 2002-0177587 F - XXXXXXXXXX EN CONSIGNATION PERTE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs business commences when a significant activity is initiated that is part of an income-generating process
Income Tax Act - Section 9 - Timing loss when inventory disappears is deducted when the loss is discovered
27 March 2003 External T.I. 2002-0178035 F - HYPOTHEQUE PLACEMENT ADMISSIBLE Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) no requirement that the mortgage be a first mortgage or a residential mortgage
27 March 2003 External T.I. 2002-0180045 F - DEDUCTION DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) s. 245(1) might be applied to transactions to convert non-deductible mortgage interest to deductible interest pursuant to sale of shares to borrowing wife and use of s. 74.1(1)
Income Tax Act - Section 74.1 - Subsection 74.1(1) s. 74.1(1) attributes income or loss after deduction of interest expense
11 March 2003 Internal T.I. 2003-0000087 F - Projet agricole au sens de 122.3(1)b)(i)(B) Income Tax Act - Section 248 - Subsection 248(1) - Farming woodlot management can be farming
4 April 2003 Internal T.I. 2003-0004387 F - OUTIL ADMISSIBLE APPRENTI MECANICIEN Income Tax Act - Section 8 - Subsection 8(6) - Paragraph 8(6)(b) - Subparagraph 8(6)(b)(ii) tool that is resold without being used qualifies as “new” to the purchaser
31 March 2003 External T.I. 2003-0006305 F - Safe Income Discretionary Dividend Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) questionable to allocate all SIOH to the class of discretionary dividend shares on which a dividend is paid/ cannot attribute pre-issuance safe income to a share
18 February 2003 Internal T.I. 2003-0182997 F - Calcul du revenu net étranger à 126(1)b)(i) Income Tax Act - Section 126 - Subsection 126(9) - Paragraph 126(9)(a) qualifying income not reduced by s. 110(1)(d) deduction
2003-03-28 18 March 2003 External T.I. 2003-0002915 F - Subsections 40(3.3) & 40(3.4) Income Tax Act - Section 40 - Subsection 40(3.4) taxpayer can designate order of disposition
18 March 2003 External T.I. 2002-0122845 F - CREDIT D'IMPOT POUR LE DOUBLAGE DE FILMS Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) timing of receipt of Quebec film dubbing credit
21 March 2003 External T.I. 2002-0161115 F - ALLOCATION DE FIN DE CARRIERE Income Tax Act - Section 146 - Subsection 146(1) - Earned Income end-of-career allowance received by physician is not earned income
24 March 2003 External T.I. 2002-0165265 F - REMBOURSEMENT DE PRIMES Income Tax Act - Section 146 - Subsection 146(8.1) election cannot be made with surviving spouse if bequest of RRSP is to surviving adult child
26 March 2003 External T.I. 2003-0008645 F - Non-Arm's Length Sale of Shares Income Tax Act - Section 84.1 - Subsection 84.1(1) no presumption that a transaction between companies owned by couple and nephew, respectively, is not arm’s length
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) family relationship (e.g., uncle/nephew) are more likely to give rise to NAL transaction

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