Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-07-05 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
25 June 2002 External T.I. 2002-0145055 F - ACCORD DE SEPARATION TRANSFERT D'UN REER Income Tax Act - Section 146 - Subsection 146(16) - Paragraph 146(16)(b) obligation to transfer to separated spouse’s RRSP can arise only after amendment of separation agreement
9 July 2002 External T.I. 2002-0147985 F - ACTIONS PRIVILEGIEES CONVERTIBLES Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) s. 7(1)(a) benefit when employee’s convertible preferred shares converted to common shares
Income Tax Act - Section 7 - Subsection 7(1.5) no disposition for purposes of s. 7(1.5) when employee’s preferred shares converted to common shares
2002-06-07 11 June 2002 External T.I. 2001-0104075 F - DEDOMMAGEMENT Income Tax Act - Section 54 - Adjusted Cost Base damages award not part of cost if subject to an appeal
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) damages award not recognized until appeal thereof heard
17 June 2002 Internal T.I. 2001-0111717 F - BFT ET CONSTRUCTION MAISON EN USINE Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (c) fabricator of manufactured homes was not excluded for engaging in “construction”
18 April 2002 Internal T.I. 2002-0118827 F - DEBENTURES CONVERTIBLES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) no s. 20(1)(f)(ii) deduction on conversion of convertible debentures notwithstanding attempt in resolution to fix the issued shares’ stated capital at their market value
Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital PUC of shares issued on debenture conversion equal to consideration stated in debenture indenture and in financial statements, rather than the FMV of shares stated in resolution
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

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