Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-04-12 18 March 2002 External T.I. 2002-0120065 F - Avoir fiscal français - 20(11) Treaties - Income Tax Conventions - Article 10 subsequent refund to Canadian shareholder of French avoir fiscal treated as a dividend payment for dividend withholding purposes
19 March 2002 External T.I. 2002-0120785 F - Allocation de retraite - 212(13)(d) Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(j.1) s. 212(1)(j.1) applicable to the extent that the retiring allowance paid by the US employer to the non-resident retired employee is invoiced to the predecessor affiliated employer in Canada
Income Tax Act - Section 215 - Subsection 215(2) s. 215(2) applicable to retiring allowance paid by US employer where it invoiced the sister Canadian corporation, as the predecessor employer, therefor
2 May 2002 Internal T.I. 2002-0122607 F - BIENS A USAGE PERSONNEL Income Tax Regulations - Regulation 1102 - Regulation 1102(2) effective severance for ITA purposes of land and building by Reg. 1102(2) does not apply to personal-use property
Income Tax Act - Section 248 - Subsection 248(1) - Property where Reg. 1102(2) does not apply, land and building are a single property generating a single gain
15 April 2002 External T.I. 2002-0128145 F - 84.1(2)(a.1) of the Act Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) - Subparagraph 84.1(2)(a.1)(ii) where old common exchanged for new common shares and prefs with s. 85(1) election equal to the pref FMV, the s. 110.6 deduction will be traced under s. 84.1(2)(a.1)(ii) only to the prefs
26 April 2002 Internal T.I. 2002-0129707 F - FRAIS D'OUVERTURE DE COMPTE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Oversight or Investment Management admin fee on becoming a holder of shares that were not a source of property income was a non-deductible capital expenditure and ACB addition
Income Tax Act - Section 54 - Adjusted Cost Base admin fee for shares that generate only capital gains is an ACB addition
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) admin fee for shares that generate only capital gains cannot be deducted under s. 20(1)(bb)
25 April 2002 Internal T.I. 2002-0131937 F - FRAIS D'EMPRUNT-EVALUATION ARPENTAGE Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(ii) cost of appraisal fee required by mortgage lender was deductible
3 May 2002 External T.I. 2002-0132615 F - PERTE DECOULANT D'UN PAIEMENT A UN RPDB Income Tax Act - Section 147 - Subsection 147(8) creation of a business loss from making a DPSP contribution is not necessarily inconsistent with the DPSP rules
2 May 2002 Internal T.I. 2002-0132877 F - DÉDUCTIBILITÉ DES INTÉRÊTS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on borrowed money to acquire common shares generally deductible
1 May 2002 External T.I. 2002-0133145 F - RAP - BAIL & ACTIONS Income Tax Act - Section 146.01 - Subsection 146.01(1) - Qualifying Home unit consisting of a leasehold interest and shares of the corporation owing the property could qualify as qualifying home
2002-03-29 21 March 2002 External T.I. 2001-0115265 F - 89(1)(c.1)(i)&(c.2)(i) Capital Div. Acc. Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account under revised rules, CDA from goodwill disposition can only be accessed in the following year
11 December 2001 Internal T.I. 2001-0098827 F - ANNULATION D'UN REGIME D'OPTION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract or Option Cancellation cash settlement of employee stock options in connection with the privatization of the corporation was a capital expenditure
4 April 2002 External T.I. 2001-0103525 F - Identical Property Income Tax Act - Section 54 - Superficial Loss - Paragraph (i) right to convert Class A shares into Class B shares would cause the loss on disposing of Class B shares, followed immediately by acquiring Class A shares, to be a denied superficial loss
18 April 2002 Internal T.I. 2001-0105007 F - RECOMPENSE POUR UN SAUVETAGE MARITIME Income Tax Act - Section 3 - Paragraph 3(a) salvage received by crew members was not an exempt windfall
Income Tax Act - Section 5 - Subsection 5(1) salvage received by employed crew members likely employment income
5 April 2002 External T.I. 2002-0122055 F - BIEND D'UN REER DONNES EN GARANTIE Income Tax Act - Section 146 - Subsection 146(12) where property used as security, s. 146(12) rather than s. 146(10) applies to a depositary RRSP
Income Tax Act - Section 146 - Subsection 146(10) s. 146(10) rather than s. 146(12) applies to a non-depositary RRSP where its property is used as security
Income Tax Act - Section 146 - Subsection 146(7) s. 146(7) can reverse only the current year’s inclusion under s. 146(10)
17 April 2002 Internal T.I. 2002-0122157 F - ANNULATION D'OPTION D'ACHAT D'ACTION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract or Option Cancellation Target’s cash-cancellation of executives' options was on capital account
12 April 2002 External T.I. 2002-0122495 F - PRIME PAYEE SUR OBLIGATION Income Tax Act - Section 54 - Adjusted Cost Base premium on bond acquired as capital property produces a capital loss at maturity
Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables short holding time to maturity does not preclude a bond from being capital property
Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(b) determination of Reg. 7000(1)(b) proportions made on a taxpayer-specific basis
11 April 2002 External T.I. 2002-0125675 F - REER DECOUVERT BANCAIRE Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(a) bank overdraft due to admin fee charge to RRSP could constitute money borrowed from the trust
Income Tax Act - Section 146 - Subsection 146(10) overdraft in RRSP bank account due to admin fee charge could represent the use of trust property as loan security
2002-03-15 4 April 2002 External T.I. 2001-0104065 F - PROVISION D'ENTREPRISE DANS UNE PROVINCE Income Tax Regulations - Regulation 2601 - Subsection 2601(1) Quebec partner who retired and became an Ontario employee allocated the reserve inclusion under s. 34.2(5) wholly to Ontario
9 April 2002 Internal T.I. 2001-0112817 F - RESIDENCE PRINCIPALE - VENTE D'UN DUPLEX Income Tax Act - Section 54 - Principal Residence - Paragraph (e) duplex land allocated between rental and principal residence generally based on the floor areas of the respective building portions
4 April 2002 Internal T.I. 2001-0113237 F - REMBOURSEMENT DE FRAIS MEDICAUX Income Tax Act - Section 118.2 - Subsection 118.2(3) - Paragraph 118.2(3)(b) Quebec CIMAD qualifies as reimbursement of specific expenses
4 April 2002 External T.I. 2002-0123065 F - DOMMAGES-INTERETS Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (b) compensation received by Jews for property seized 60 years previously was a windfall rather than proceeds of disposition
Income Tax Act - Section 3 - Paragraph 3(a) annuities or capital sums paid to victims of anti-Semitic persecution were not income
2002-03-01 12 March 2002 Internal T.I. 2001-0094067 F - DEDOMMAGEMENT - TITRE DE PROPRIETE Income Tax Act - Section 54 - Proceeds of Disposition damages received for use of a property contrary to the recipient’s co-ownership right were tax-free receipts
Income Tax Act - Section 3 - Paragraph 3(a) damages received for separated spouse’s unlawful use of taxpayer’s property were tax-free receipts
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees incurred in ownership dispute were capital expenditures
21 March 2002 Internal T.I. 2001-010133A F - VALIDITE D'UN JUGEMENT - PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount where couple reconcile and then separate a second time, child custody thereafter paid will not qualify as support amounts if no new agreement or judgment
5 March 2002 Internal T.I. 2001-0102757 F - PERTE FINALE Income Tax Act - Section 54 - Adjusted Cost Base cost of moving rental building off land for subsequent sale, in order to construct parking lot and create more space for existing rental buildings, was addition to ACB of land
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) a rental building that was acquired with a view to then moving it off the subjacent land and then selling it, was not a depreciable property
6 March 2002 Internal T.I. 2001-0108587 F - AIDE A DOMICILE DE LA SAAQ Income Tax Act - Section 152 - Subsection 152(4) refunds not issued beyond Objection period based on favourable judgment rendered to another taxpayer
Income Tax Act - Section 3 - Paragraph 3(a) in cases similar to Maurice, parent caregivers may be exempted on compensation received

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