Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-03-07 5 February 2003 External T.I. 2003-0183065 F - FASB 143 ET PARTIE 1.3 Income Tax Act - Section 181.4 - Paragraph 181.4(a) US accounting standards can potentially be taken into account
2003-02-21 19 February 2003 Internal T.I. 2002-0169967 F - ARREARAGES-PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount settlement payment of past and future support payments was not a support amount
18 February 2003 External T.I. 2003-0182325 F - RAP LIEN PRINCIPAL DE RESIDENCE Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(a.1) individual co-owning a residence that was leased to her and spouse was disqualified if it was used as her principal place of residence, i.e., it had exclusive kitchen, bathroom and bedroom
2003-02-14 11 December 2002 External T.I. 2002-0146465 F - Article XVI Canada-E.U. Treaties - Income Tax Conventions - Article 16 income earned by S Corp. of US athlete was taxable under Art. 16
28 January 2003 External T.I. 2002-0147405 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1) leave periods in Canada count towards the period of 6 months’ employment under foreign project if not terminated before leave commences
Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) leave period in Canada counted towards the 6-month period required under s. 122.3(1) of employment on performing services on foreign project
30 January 2003 Internal T.I. 2002-0157307 F - Article 86.1 et fractions d'action Income Tax Act - Section 86.1 - Subsection 86.1(2) - Paragraph 86.1(2)(b) distribution of fractional shares and their immediate cash sale complied with s. 86.1(2)(b)
27 January 2003 External T.I. 2002-0169385 F - Un serveur et l'établissement stable Treaties - Income Tax Conventions - Article 5 Canadian servers of Swiss company would not be a PE if sales of its product not made through the website
28 January 2003 Internal T.I. 2002-0175927 F - Choix de 107(2.001) Income Tax Act - Section 107 - Subsection 107(2.001) the election, which is unlike the designation in Lussier, cannot be made late
2003-02-07 5 February 2003 External T.I. 2002-0157445 F - AAPE ACTION ADM PETITE ENTREPRISE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) question of fact whether shares of stock-trading corporation were QSBCs
Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation CCRA articulation of Ensite test in relation to stock-trading business
31 January 2003 External T.I. 2002-0161555 F - VENTE D'UN IMMEUBLE LOCATIF Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) payment made by vendor to purchaser of building reduced its proceeds of disposition
3 February 2003 Internal T.I. 2002-0168317 F - PAIEMENT DE DEPENSES Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amount recipient does not qualify as having discretion as to use if a court order specifies the expenses that are covered
Income Tax Act - Section 56.1 - Subsection 56.1(2) express mention of ss. 56.1(2) and 60.1(2) no longer required
2003-01-24 21 January 2003 External T.I. 2001-0109445 F - Usufruit-droit privé français-nu-prop. Cdn. Income Tax Act - Section 70 - Subsection 70(5) when usufruct created by will, legatee of bare ownership acquired it at FMV of bare ownership
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) bare owner of rental property not entitled to claim CCA
10 November 2002 Roundtable, 2002-0156845 F - CONGRE 2002 APFF Income Tax Act - Section 7 - Subsection 7(1.1) realization of s. 7(1.1) gain on shares’ disposition even though they had lost most of their value
13 January 2003 External T.I. 2002-0176905 F - CPCC Status Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (b) test of majority-ownership of voting shares
27 January 2003 Internal T.I. 2002-0177197 F - ATTRIBUTION DU GAIN A UN CONJOINT SEPARE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount net rental income on property received by separated spouse to fund support was rental income, not a support amount
Income Tax Act - Section 74.5 - Subsection 74.5(3) - Paragraph 74.5(3)(b) application of s. 74.5(3)(b) re properties divided between the separated spouses and sold before divorce
2003-01-10 23 January 2003 External T.I. 2002-0161405 F - COUT DE TRANSPORT DU CONJOINT Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) presence of employee’s spouse at the special work site would not be decisive of their off-site home not being the employee’s “principal place of residence”
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) transportation costs could include those of a spouse staying with the employee at the special work site
2003-01-03 14 January 2003 External T.I. 2002-0154205 F - CARACTERE RAISONNABLE FRAIS Income Tax Act - Section 67 reasonableness of management fees determined by reference to what would be paid a 3rd party
2002-12-20 12 December 2002 External T.I. 2001-0100755 F - Impact of LCB on Dr and Part IV Income Tax Act - Section 129 - Subsection 129(2) general practice to net dividend refund against unpaid Part I tax
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) connected dividend recipient is not required to pay s. 186(1)(b) tax if it can demonstrate by the return-filing deadline that such tax was eliminated through a loss carryback
Income Tax Act - Section 164 - Subsection 164(1) where subsequent loss carryback eliminates the Part I tax and dividend refund (DR), the refund interest is calculated on the initial Part I tax amount even if the DR reversal is paid by set-off
Income Tax Act - Section 160.1 - Subsection 160.1(1) interest payable under s. 160.1(1) on the reversed dividend refund where subsequent year’s loss is carried back to eliminate the Part I tax and RDTOH
3 January 2003 External T.I. 2002-0141745 F - Terminaison d'une Fiducie testamentaire Income Tax Act - Section 249 - Subsection 249(1) - Paragraph 249(1)(b) testamentary trust ceases to exist when all its assets have been distributed
10 January 2003 External T.I. 2002-0143315 F - FRAIS LEGAUX DEDUCTIBILITE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs estate could deduct damages incurred in the course of business of the deceased
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees estate could deduct legal fees paid by it regarding damages incurred in the course of business of the deceased
12 December 2002 External T.I. 2002-0146175 F - Losses Incurred by a Taxpayer ect...... Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) - Subparagraph 39(1)(c)(iii) usual s. 50(1)(b)(i) and SBC qualification rules applied to shares of a cooperative corporation that became bankrupt
20 December 2002 External T.I. 2002-0164735 F - PRODUIT DE DISPOSITION ACHALANDAGE Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable E full potentially receivable amount must be recognized, notwithstanding subsequent possible downward adjustment
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) s. 12(1)(g) applicable to incremental pharmacy sales price for goodwill based on volume of prescriptions for post-sale years
7 January 2003 Internal T.I. 2002-0168347 F - RETRAITE OU PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount splitting of pension income for support purposes was alimony
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) equal share of pension income going to ex-spouse without declared element of support was received as pension income
11 December 2002 Internal T.I. 2002-0173007 F - Observation aux commentaires (OCDE) Treaties - Income Tax Conventions - Article 12 Canada’s withdrawal of its observation on Art. 12 on March 28, 2002 was prospective, and did not affect its right to impose withholding tax on payments for use of a secret process prior to that date
7 January 2003 External T.I. 2002-0173245 F - REMBOURSEMENT DEPENSES ET ALLOCATIONS Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no benefit on reimbursement of snacks provided to clients
6 January 2003 External T.I. 2002-0173405 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) application of transitional rules re changes in inclusion fraction including example
23 December 2002 Internal T.I. 2002-0176087 F - LIMITE APPLICABLE TRANSFER DANS REER Income Tax Act - Section 146.3 - Subsection 146.3(6.11) - Paragraph 146.3(6.11)(b) - Variable C Variable C included the deemed benefit under s. 146.3(6.1)
Income Tax Act - Section 146.3 - Subsection 146.3(6.1) deemed benefit under s. 146.3(6.1) included in amount referred to in s. 146.3(5)

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