Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-06-07 18 April 2002 Internal T.I. 2002-0118827 F - DEBENTURES CONVERTIBLES Income Tax Act - Section 18 - Subsection 18(9.1) straight-line or present value method may be used in amortizing premium, and must relate to interest
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures premium on redemption of convertible debentures was not deductible on current account
20 June 2002 External T.I. 2002-0120245 F - CREDIT D'IMPOT PERSONNELS Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) general requirements
31 May 2002 Internal T.I. 2002-0131647 F - REPORT CREDITS FRAIS SCOLARITE Income Tax Act - Section 118.61 - Subsection 118.61(1) deductible credits which are not used cannot be carried forward
20 June 2002 External T.I. 2002-0140895 F - PRESTATION AU DECES Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit amount was not a taxable death benefit and was in substance insurance proceeds
25 June 2002 External T.I. 2002-0143675 F - CONGE A TRAITEMENT DIFFERE ET RETRAITE Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) cannot use sick leave and vacation leave credits
20 June 2002 External T.I. 2002-0145075 F - REER PLACEMENT ADMISSIBLE Income Tax Act - Section 262 addition of TSX Venture Exchange
2002-05-24 24 May 2002 Internal T.I. 2002-0130667 F - REGIME PRESTATION EMPLOYES Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement discussion of transitional rules re expansion of SDA rules effective February 26, 1986
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(g) amounts received by retiring employee under EBP even if elected not to receive
General Concepts - Payment & Receipt amounts “received” under EBP if unrestricted right to receive
6 June 2002 External T.I. 2002-0133895 F - entreprise de placement determinee Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business recapture from sale of a rental business qualified as business income that was not from a specified investment business, notwithstanding no employees in that year after the sale
Income Tax Act - Section 13 - Subsection 13(1) recapture is treated as income from the business in which the depreciable asset was used
27 May 2002 External T.I. 2002-0135605 F - DIVISION 6208(1)a)(iii)(A) du Règlement Income Tax Regulations - Regulation 6208 - Subsection 6208(1) - Paragraph 6208(1)(a) - Subparagraph 6208(1)(a)(iii) meaning of “other property” informed by s. 248(1) meaning of “property”
10 June 2002 External T.I. 2002-0138885 F - Redemption of Preferred Shares Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) s. 55(3)(a) applicable to redemption by Opco of preferred shares held by father’s holding company where Opco’s common shares held by his children or their Holdcos
4 June 2002 External T.I. 2002-0141435 F - Disposition of Shares Income Tax Act - Section 248 - Subsection 248(1) - Disposition exchange of voting common for voting pref and non-voting common is a disposition
Income Tax Act - Section 85 - Subsection 85(1) exchange of voting common for voting pref and non-voting common eligible for s. 85(1) election
12 June 2002 External T.I. 2002-0143325 F - REGIME DE CONGE A TRAITEMENT DIFFERE Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(ii) combined application of 33 1/3% limit where 2 SDAs
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iii) where 2 SDAs, combined application of reduction under Reg. 6801(a)(iii)(A)
2002-05-10 9 May 2002 Internal T.I. 2002-0135307 F - Application du paragraphe 39(2) Income Tax Act - Section 90 - Subsection 90(3) distribution of contributed surplus by Delaware subsidiary likely was a dividend
Income Tax Act - Section 39 - Subsection 39(2) distribution by Delaware subsidiary that did not result in s. 40 application thereby did not engage s. 39(2)
Income Tax Act - Section 248 - Subsection 248(1) - Dividend a dividend is any corporate distribution other than of PUC
15 May 2002 External T.I. 2001-0103605 F - Prêt par un Associé à une Société Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) interest on loan by partner to partnership is treated as interest rather than income allocation if there is a loan rather than partnership contribution under provincial law
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(g) if a loan made by a partner is at law a loan rather than a partnership contribution, the interest thereon will be treated as interest rather than profit allocation
31 May 2002 External T.I. 2001-0110095 F - ALLOCATIONS NON IMPOSABLES Income Tax Act - Section 6 - Subsection 6(16) - Paragraph 6(16)(a) mobility impairment means significant difficulty moving around that lasts 12 months
24 May 2002 Internal T.I. 2001-0113597 F - ASSURANCE CONTRE LES MALADIES GRAVES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) if a clause providing for the return of premiums on death was ancillary, the policy could still qualify as a group sickness or accident insurance plan
20 May 2002 External T.I. 2002-0117885 F - Lien de dépendance et application de 120.4 Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(a) trustee is related to individual if its trustee is so related
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) split income definition applied on the basis that the business of a partnership is carried on by its partners and that a trust if related based on the relatedness of its trustee
Income Tax Act - Section 104 - Subsection 104(1) s. 104(1) indicates that related party status of trust is tested through its trustee
24 May 2002 External T.I. 2002-0123225 F - REER DONNE EN GARANTIE Income Tax Act - Section 146 - Subsection 146(10) inclusion under s. 146(10) for secured guarantee not limited to loan value, and ousts application of s. 146(8) if payment made by RRSP pursuant to guarantee
Income Tax Act - Section 248 - Subsection 248(28) s. 248(28) prevents double inclusion under s. 146(10) when secured guarantee given and under s. 146(8) when guarantee called
Income Tax Act - Section 146 - Subsection 146(8) generally no double taxation under s. 146(8) on payout on guarantee if property’s value previously included under s. 146(10)/ gross-up for source deduction purposes
2 May 2002 External T.I. 2002-0134335 F - Sous-aliéna 104(4)a)(i) et 110.6(15)a)(i) Income Tax Act - Section 110.6 - Subsection 110.6(15) - Paragraph 110.6(15)(a) - Subparagraph 110.6(15)(a)(i) s. 110.6(15)(a)(i) deeming rule does not apply for s. 104(4)(a)(i) purposes
2002-04-26 21 May 2002 External T.I. 2001-0097215 F - DISPOSITION D'UN BIEN EN IMMOBILISATION Income Tax Act - Section 248 - Subsection 248(1) - Disposition disposition of land when sold by municipality for unpaid property taxes
14 May 2002 External T.I. 2001-0105925 F - TOTALITE DES ACTIFS DE L'ENTREPRISE Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(ii) - Clause 110.6(14)(f)(ii)(A) unclear whether pharmaceuticals inventory could be transferred to a corporation owned by a pharmacist
General Concepts - Illegality in 1996, the transfer of inventories of a Quebec pharmaceutical business to a wholly-owned corporation would have been invalid
22 May 2002 Internal T.I. 2001-0106577 F - APPARIEMENT DES REVENUS ET DEPENSES Income Tax Act - Section 9 - Timing following Canderel, an upfront payment made under a multi-year supply contract is currently deductible
15 May 2002 External T.I. 2001-0107805 F - PLUSIEURS ENTREPRISES Income Tax Act - Section 98 - Subsection 98(5) where the terminated partnership carried on more than one business, s. 98(5) requires the sole proprietor to carry on all of those businesses
Statutory Interpretation - Interpretation Act - Subsection 33(2) reference to “the” business included all the businesses
17 May 2002 External T.I. 2001-0107815 F - APPLICATION DE LA LOI Income Tax Act - Section 34.1 - Subsection 34.1(8) s. 34.1(8) would apply if an old partnership is replaced by a new one, provided no tax avoidance motivation
Income Tax Act - Section 96 s. 249.1(1) overrode the normal perspective that the partnership business was carried on by the partners both before and after a new partnership was formed

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