Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-03-29 18 April 2002 Internal T.I. 2001-0105007 F - RECOMPENSE POUR UN SAUVETAGE MARITIME 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
25 March 2002 Internal T.I. 2001-0113497 F - REMBOURSEMENT DE PRESTATIONS ASS. EMPLOI Income Tax Act - Section 60 - Paragraph 60(n) - Subparagraph 60(n)(iii) repayment of EI benefits due to award of wrongful dismissal damages was deductible under s. 60(n)(iii)
Income Tax Act - Section 60 - Paragraph 60(v.1) repayment of EI benefits due to award of wrongful dismissal damages was deductible under s. 60(n)(iii) rather than s. 60(v.1)
20 March 2002 External T.I. 2001-0113815 F - TVQ SUR PRIMES D'ASSURANCE - SALAIRE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) employee would not be credited with a contribution on paying Quebec sales tax on wage loss plan premiums/ the employer paying them would not be a contribution
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employee would not be credited with a contribution on paying Quebec sales tax on wage loss plan premiums/ the employer paying them would not be a contribution
14 March 2002 External T.I. 2002-0119695 F - Income & Losses/Business or Property General Concepts - Agency criteria applied for determining presence of agency
12 March 2002 External T.I. 2002-0125885 F - Section 55(3)(a) - Exception55(3)(a) Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) s. 55(3)(a) applies where Opco redeems 50% shareholder (Holdco A) where other shareholder is owned by the son respecting the spousal trust owning Holdco A
2002-02-15 25 February 2002 External T.I. 2000-0046485 F - Majoration et Immobilisation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(v) reciprocal transactions entailed acting in concert, so that the bump was denied under s. 88(1)(c)(v)
Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(vi) - Clause 88(1)(c)(vi)(B) - Subclause 88(1)(c)(vi)(B)(I) reciprocal transactions entailed acting in concert, so that the bump was denied under s. 88(1)(c)(vi)(B)(I) given resulting specified shareholder status
Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d.2) reciprocal transactions entailed acting in concert, so that the bump was denied under s. 88(1)(c) and (d.2) by virtue of backdating acquisition of acquisition of control by parent
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) co-operative use of s. 88(1)(d) bump by targets and purchasers could entail acting in concert
Income Tax Act - Section 9 - Capital Gain vs. Profit - Shares arguable that preferred shares received on s. 85(1) rollover basis for eligible capital property transfer, and immediately sold, were not capital property
1 March 2002 External T.I. 2001-0095115 F - ACTIF UTILISE PRINCIPALLEMENT-SEPE Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation relative floor area a significant factor in determining principal use of building/ interposition of franchisor as tenant/ sublessor did not change potential business-use finding
Income Tax Act - Section 129 - Subsection 129(6) interposition of 3rd-party franchisor between lessor and active-business wholly-owned tenant precluded application of s. 129(6)
28 February 2002 Internal T.I. 2001-0097117 F - TPS/TVH SUR UN AVANTAGE IMPOSABLE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose GST on employee benefit, but not shareholder benefit, generally is deductible
Income Tax Act - Section 9 - Timing accrual-basis taxpayer may deduct GST on employee benefits on a cash basis
7 March 2002 External T.I. 2001-0106275 F - BOURSE D'ETUDES ET DE PERFECTIONNEMENT Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) general discussion regarding foreign internship sponsored by Foreign Affairs
4 March 2002 External T.I. 2001-0106325 F - ALLOCATION POUR UNE AUTOCARAVANE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) allowance for motorhome must be for its use in travelling rather than as accommodation to come within s. 6(1)(b)(vii.1)

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