Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-08-30 13 September 2002 External T.I. 2002-0159525 F - Non-Arm's Length Sale of Shares Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) CCRA does not generally presume that an uncle and nephew do not deal at arm’s length
11 September 2002 External T.I. 2002-0161005 F - REÇU POUR DON - MUNICIPALITÉ Income Tax Act - Section 110.1 - Subsection 110.1(2) a local municipality incorporated under the Quebec Municipal Territorial Organization Act could issue receipts for gifts received
2002-08-02 12 August 2002 External T.I. 2002-0150095 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) surrogatum principle not applied to damages received from insurance company for alleged default in paying life insurance proceeds
16 August 2002 Internal T.I. 2002-0156577 F - ASSURANCE - INVALIDITE - PARITE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) previous contributions could be deducted from subsequent equalization adjustment received
2002-07-19 14 August 2002 External T.I. 2001-0116385 F - PARTAGE DE COMMISSIONS Income Tax Act - Section 56 - Subsection 56(2) a reasonable portion of mutual fund commissions received by a firm should be allocated to its representative who made the sales
13 August 2002 External T.I. 2002-0121295 F - PBR DES PARTS PRIVILEGIEES Income Tax Act - Section 43 - Subsection 43(1) sale of preferred and retention of common partnership units entailed part disposition of single property/ different s. 43 allocation methods possible
Income Tax Act - Section 248 - Subsection 248(1) - Property preferred and common partnership units were single property
6 August 2002 External T.I. 2002-0130735 F - DISPOSITION D'UN PERMIS Income Tax Regulations - Schedules - Schedule II - Class 14 licence to operate a seniors home was eligible capital property whereas related agreements with Ministry (that after a point were not automatically renewable) were Class 14 property
6 August 2002 Internal T.I. 2002-0130897 F - RECOMPENSES ES QUASI-MONETAIRES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) gift cards and smart cards with spendable balances do not come within the ITTN 25 gifts policy
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) s. 67.1(2)(d) exclusion inapplicable to meal or show ticket gifts within ITTN 25 gifts policy
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(ii) s. 18(1)(l)(ii) applies irrespective whether the membership is an employer gift within the ITTN 25 gifts policy
9 August 2002 Internal T.I. 2002-0145817 F - TAUX DE DEDUCTION - PTPE - ANNEE 2000 Income Tax Act - Section 38 - Paragraph 38(c) BIL realized under s. 50 at end of year (2000) so that ½ an ABIL
2 August 2002 External T.I. 2002-0152445 F - RENTE VIAGERE ET CREDIT Income Tax Act - Section 118 - Subsection 118(7) - Pension Income - Paragraph (a) - Subparagraph (a)(i) an annuity that ceases upon attaining a specified age is not a “life annuity”
2002-07-05 10 September 1997 External T.I. 9704715 F - RÉCOMPENSE - PRIX D'EXCELLENCE EN XXXXXXXXXX Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) prize excluded because received in respect of employment
19 June 2002 External T.I. 2000-0020525 F - Article 19 Canada - France Tax Treaty Treaties - Income Tax Conventions - Article 19 question of whether French payer was a governmental instrumentality referred to group which could engage in competent authority matters
29 July 2002 External T.I. 2001-007075A F - DEPLACEMENT - TRAVAILLEUR FORESTIER Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) travel between home and forestry camp, but not between forestry camp and cutting sites, generally was personal
14 June 2002 External T.I. 2001-0103755 F - Cumulative Eligible Capital on Amalgamation Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(f) Amalco should not have 2 CEC adjustment times
19 June 2002 External T.I. 2002-0120035 F - Non Arm's Length Corporations Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(ii) 2 brothers’ respective corporations were related
30 July 2002 External T.I. 2002-0121435 F - categorie 16 - remorquage Income Tax Regulations - Schedules - Schedule II - Class 16 - Paragraph 16(g) towing of heavy vehicles and buses constitutes hauling freight
12 July 2002 External T.I. 2002-0127585 F - Legal Expenses, Compensation for Defamation Income Tax Act - Section 3 - Paragraph 3(a) damages received by employee for defamation were tax free if their character not misrepresented
Income Tax Act - Section 5 - Subsection 5(1) damages received by employee for defamation were not employment income if not deliberately mislabeled
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) legal fees incurred for employee to receive damages only for defamation were not deductible
4 July 2002 External T.I. 2002-0130675 F - Sec. 159 - Payments on Behalf of Others Income Tax Act - Section 159 - Subsection 159(2) purchaser’s lawyer not a legal representative of the vendor notwithstanding payment directions received from vendor
28 June 2002 Internal T.I. 2002-0132427 F - RDTOH Income Tax Act - Section 129 - Subsection 129(1) RDTOH reduced by dividend refund even if time limit for claiming the dividend refund has passed
19 July 2002 External T.I. 2002-0133535 F - PERTE APPARENTE CALCUL DU PBR Income Tax Act - Section 54 - Superficial Loss numerical illustration where series of partial dispositions, and acquisitions, of identical shares
18 July 2002 Internal T.I. 2002-0135177 F - TRANSPORT DE MARCHANDISES Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(g) goods include property not intended for sale, such as mail, but do not include securities
25 July 2002 Internal T.I. 2002-0139877 F - ASSURANCE INVALIDITE-PARITE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) contributions in years 2 and 3 could be deducted from subsequent parity adjustment to contribution made in year 1
31 July 2002 External T.I. 2002-0153135 F - FRAIS JUDICIAIRES Income Tax Act - Section 60 - Paragraph 60(o.1) amounts incurred by retiree association in suing pension fund not deductible under s. 60(o.1) unless incurred as agent for retirees
2002-06-21 21 June 2002 External T.I. 2001-0107705 F - Partie XIII et logiciels d'ordinateurs Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) exemption for shrink-wrapped software not applicable where it is downloaded
Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business question of fact whether software developer generating royalties has a specified investment business
5 July 2002 External T.I. 2002-0121115 F - CREDIT-BAIL Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property lessor rather than lessee under a financing lease was entitled to CCA
11 July 2002 External T.I. 2002-0126795 F - RESSOURCES INTERMEDIAIRES REVENU EX Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) contributions paid to a Quebec intermediate resource have been treated as means-based assistance
4 June 2002 External T.I. 2002-0127515 F - Règles de réalisation de 21 ans Income Tax Act - Section 104 - Subsection 104(4) - Paragraph 104(4)(b) - Subparagraph 104(4)(b)(ii) reduction in number of trustees in a purported new trust did not necessarily create a new trust
Income Tax Act - Section 104 - Subsection 104(5.8) potential application of GAAR where transfer to a new trust before the effective date of s. 104(5.8)
25 June 2002 Internal T.I. 2002-0130177 F - DEBENTURE CONVERTIBLE Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) amount paid by corporation on conversion of convertible debentures was the stated capital of the issued shares, being the debentures’ face amount, so that no s. 20(1)(f) deduction
General Concepts - Payment & Receipt Teleglobe applied to find that amount paid by corporation on conversion of convertible debentures was the shares’ stated capital
Income Tax Act - Section 143.3 - Subsection 143.3(3) - Paragraph 143.3(3)(a) Teleglobe applied to pre-s. 143.3(3)(a)(ii) transaction
11 July 2002 External T.I. 2002-0131085 F - ASSURANCE INVALIDITE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) employer can pay an employee additional remuneration equal to the premiums payable by the employee under employee-pay-all plan
8 July 2002 External T.I. 2002-0131835 F - Investissements détenus à l'étranger Treaties - Income Tax Conventions - Article 22 Canada could tax income and gains of a Canadian resident from a French life insurance policy
8 July 2002 External T.I. 2002-0136615 F - Par. 250(5) - Déclaration de revenus Income Tax Act - Section 250 - Subsection 250(5) individual deemed to be non-resident by s. 250(5) is not required to report world income

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