Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-05-10 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
14 May 2002 Internal T.I. 2001-0109517 F - SECTION DE LA LOI248(28) Income Tax Act - Section 248 - Subsection 248(28) disallowance of interest deduction to partnership on loans to corporate partners whose amount was included in their income under s. 15(2), was not contrary to s. 248(28)
21 May 2002 External T.I. 2002-0133105 F - COUT DES ACTIONS Income Tax Act - Section 112 - Subsection 112(5.2) - Variable B s. 47(1) does not apply to determine the loss on mark-to-market property shares for the purposes of B in s. 112(5.2)
8 May 2002 Internal T.I. 2002-0135737 F - REGIME DE CONGE A TRAITEMENT DIFFERE Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(vi) s. 6(11) income recognition when apparent that the leave would not commence within 6 years/ Reg. 6801(a)(vi) does not to extend 6-year period but deals with leaves over one year
2002-04-12 24 April 2002 External T.I. 2001-0095755 F - TÉLÉTRAVAIL Income Tax Act - Section 8 - Subsection 8(13) telework arrangement, even if voluntary, and some time spent in the employer office, can satisfy s. 8(13) requirements/ time spent on the road does not satisfy the “primarily” requirement
4 April 2002 External T.I. 2001-0103735 F - Fiducie exclusive au conjoint et ass.-vie Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(g) s. 110.6(14)(g) inapplicable to shares held by spousal trust on the spouse’s death
Income Tax Act - Section 110.6 - Subsection 110.6(15) - Paragraph 110.6(15)(a) the spouse beneficiary of a Quebec spousal trust owns the shares owned by that trust
Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(e) s. 248(3)(e) deems the spouse beneficiary of a Quebec spousal trust to own shares of that trust
Income Tax Act - Section 70 - Subsection 70(5.3) s. 70(5.3) applicable to s. 104(4)(a)(i) disposition
21 February 2002 External T.I. 2001-0105715 F - Choix prévu à 107(2.11) Income Tax Act - Section 107 - Subsection 107(2.11) election applies to all s. 107(2.1) distributions
21 February 2002 External T.I. 2001-0105725 F - Modification à 107(2.1) Income Tax Act - Section 107 - Subsection 107(2.1) s. 107(2.1) distribution can trigger capital loss to trust or beneficiary
21 February 2002 External T.I. 2001-0105735 F - Intérêts sur remboursement - gains en capital Income Tax Act - Section 132 - Subsection 132(2) MFT obligation to pay tax, if unpaid, will be reduced by application of capital gains refund
Income Tax Act - Section 132 - Subsection 132(2.1) MFT incurs interest charges if it waits for its capital gains refund to be applied to its Pt. I tax
27 February 2002 External T.I. 2001-0109675 F - Période admissible et vacance Income Tax Act - Section 122.3 - Subsection 122.3(1) period of employment abroad does not include vacation days that could have been taken abroad, but were not
3 May 2002 External T.I. 2001-0110145 F - avantage imposable-vetements Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursing a professor for a briefcase needed in connection with work would be non-taxable
24 April 2002 External T.I. 2001-0111185 F - DISPOSITION PARTIELLE D'UNE PARTICIPATION Income Tax Act - Section 248 - Subsection 248(1) - Disposition reclassification of LP units into three classes of alphabet units did not entail a disposition
Income Tax Act - Section 97 - Subsection 97(2) creation of 3 classes of units which tracked the 3 types of partnership property was not a disposition and did not engage s. 97(2)
Income Tax Act - Section 43 - Subsection 43(1) all the partner’s units were a single property, so that the disposition of one type of unit engaged s. 43(1)
Income Tax Act - Section 248 - Subsection 248(1) - Property all units of three classes constituted a single property to the limited partner
7 March 2002 Internal T.I. 2001-0114957 F - Fiducie de nouveaux arrivants Income Tax Act - Section 94 - Subsection 94(1) - Non-Resident Time s. 94(1)(b)(i)(A)(III) allowed a newcomer to defer FAPI recognition from non-resident trusts for 60 months
22 April 2002 External T.I. 2002-0117135 F - Appl. de 107.4(1)a) à une fiducie du CcQ Income Tax Act - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(a) s. 107.4(1)(a) applicable on transfer by individual to Quebec trust of which he is a the sole beneficiary
Income Tax Act - Section 107 - Subsection 107(4.1) s. 107(2.1) applicable to distribution by personal trust of property to beneficiary other than the settlor
4 February 2002 Internal T.I. 2002-0118937 F - Calcul du paragraphe 86.1(3) de la Loi Income Tax Act - Section 86.1 - Subsection 86.1(3) numerical example of operation of s. 86.1(3)
12 February 2002 Internal T.I. 2002-0119057 F - Perte du décédé et intérêt Income Tax Act - Section 161 - Subsection 161(7) - Paragraph 161(7)(b) - Subparagraph 161(7)(b)(ii) “subsequent taxation year” here and in s. 161(7)(a)(iv.2) refers to the first taxation year of the estate
18 March 2002 External T.I. 2002-0120065 F - Avoir fiscal français - 20(11) Income Tax Act - Section 90 - Subsection 90(1) French avoir fiscal did not reduce the dividend from a French company required to be included in the resident individual shareholder’s income
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

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