Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-02-15 4 March 2002 External T.I. 2001-0106325 F - ALLOCATION POUR UNE AUTOCARAVANE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(r) motor home is not an automobile and thus not within s. 18(1)(r)
21 February 2002 External T.I. 2001-0109765 F - Debts to be Bad Debts of Bankrupt Corp. Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(b) - Subparagraph 50(1)(b)(iii) - Clause 50(1)(b)(iii)(A) “insolvent” means unable to pay one’s debts/ can’t be insolvent if nil liabilities and assets
25 February 2002 Internal T.I. 2001-0114167 F - DOMMAGES - DISCRIMINATION Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance compensation under the CHRA for lost wages and expenses would be a retiring allowance – reasonable (e.g., under $5,000) compensation for pain and suffering would be non-taxable
Income Tax Act - Section 3 - Paragraph 3(a) awards by human rights tribunals for pain and suffering re wrongful termination often are under $5,000
1 March 2002 External T.I. 2002-0118215 F - ACTIONS EMISES GRATUITES AUX EMPLOYES Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) s. 7 rules applicable to shares issued for no consideration to employees
Income Tax Act - Section 7 - Subsection 7(1.1) s. 7(1.1) continues to apply after issuing employer ceases to be a CCPC
28 February 2002 External T.I. 2002-0120315 F - Butterfly Transactions Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(c) - Subparagraph 55(3.1)(c)(ii) - Clause 55(3.1)(c)(ii)(B) application of s. 55(3.1)(c)(ii)(B) to post-butterfly issuance to unrelated persons of shares by the distributed corporation/ tainting effect on one TC of post-butterfly sale by the other TC
8 March 2002 External T.I. 2002-0123095 F - TRANSFERT - CREDIT DEFICIENCE Income Tax Act - Section 118.2 - Subsection 118.2(3) overview of requirements for transfer of severe impairment credit to parent
2002-02-01 22 February 2002 Internal T.I. 2001-0095217 F - FAILLITE-PROVINCE DE RESIDENCE Income Tax Act - Section 128 - Subsection 128(2) - Paragraph 128(2)(e) returns for both stub returns for year of bankruptcy are filed for the province of the individual’s residence on December 31 of that calendar year
Income Tax Regulations - Regulation 2601 - Subsection 2601(1) return for short taxation year resulting from bankruptcy required to be filed for the province of the individual’s residence on December 31 of that calendar year
21 February 2002 External T.I. 2001-0102405 F - ACTIVITE AGRICOLE-ERABLIERE Income Tax Act - Section 248 - Subsection 248(1) - Farming provision of meals at a sugar shack was a separate non-farming activity
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property use of maple sugar shack in significant meal preparation operation caused the farm property to not qualify as a “qualified farm property”
20 February 2002 External T.I. 2001-0105695 F - Remboursement d'impôt d'une fiducie liquidée Income Tax Act - Section 104 - Subsection 104(1) ex-trustee rather than ex-unitholders should be paid the tax refund to which wound-up mutual fund trust was entitled
14 February 2002 Internal T.I. 2001-0107757 F - PENSION ALIMENTAIRE POUR ENFANTS Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount fixed support payments were not required to be applied by the recipient to listed expenses and, therefore, their use was at her discretion and they were allowances
Income Tax Act - Section 56.1 - Subsection 56.1(4) - Child Support Amount separation agreement was sufficiently general as to the amounts’ use for them to be child support amounts
7 December 2001 Internal T.I. 2001-0108597 F - Crédit d'impôt emploi étranger Art. 122.3 Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) - Subparagraph 122.3(1)(b)(i) contract can be with a related person
Income Tax Act - Section 248 - Subsection 248(1) - Business there is a business if profit generated even if the activity was not undertaken primarily for the purpose of earning a profit
6 December 2001 Internal T.I. 2001-0110047 F - Revenu d'emploi organisation intern. Income Tax Act - Section 126 - Subsection 126(3) organization that brought together states, government agencies and non-governmental organizations did not qualify as an intergovernmental organization
20 February 2002 External T.I. 2001-0114745 F - CONTINUATION SOCIETE EN COOPERATIVE Income Tax Act - Section 248 - Subsection 248(1) - Disposition consequences of the continuance of a corporation as a cooperative depend on the implementation details
14 February 2002 External T.I. 2002-0118915 F - BIENS ETRANGERS INTERETS COURUS Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (b) cost amount of loan does not include accrued interest
2002-01-18 29 January 2002 External T.I. 2000-0053605 F - REVENU DES PECHEURS Income Tax Act - Section 9 - Nature of Income factors for allocating catch between individual holding fishing licence and his fishing corporation
5 December 2001 Internal T.I. 2001-0089247 F - CDC - Immobilisation Admissible Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (c.1) CDA addition for completed taxation years/ no double ECE deduction
11 February 2002 External T.I. 2001-0092975 F - MOMENT DE L'INCLUSION DANS LE REVENU Income Tax Act - Section 9 - Timing retroactive fee increases were not income until that date that the Order in Council ordering their payment took effect
22 January 2002 Internal T.I. 2001-0100537 F - ENTENTE TEMPORAIRE PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day cessation of temporary support variation agreement would effectively reverse the commencement day
6 February 2002 External T.I. 2001-0100565 F - CHANGEMENT D'USUAGE ET PERTE FINALE Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) change to personal use of assets on cessation of proprietorship could trigger terminal loss/ no application of s. 13(7)(a) if they are not used at all after the cessation
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) change to personal use of assets on business termination engages ss. 45(1)(a) and 13(7)(a), but not if all use ceases
11 February 2002 Internal T.I. 2001-0102747 F - FABRICATION ET TRANSFORMATION Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (c) M&P activity not assimilated to construction business where half the gross revenues were from sales
Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits not sale of products where services component of construction contract was not incidental
Income Tax Act - Section 9 - Timing contract completion method can be used by a non-construction business company
3 December 2001 Internal T.I. 2001-0104677 F - VERSEMENT POUR REMBOURSER L'IMPOT Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount annual top-up to monthly support to cover income tax to the recipient qualified as support amount
8 February 2002 Internal T.I. 2001-0106197 F - PRIME D'ASSURANCE-VIE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) allocation of premium between plan with different components
11 January 2002 External T.I. 2001-0112605 F - Section 159 - Payments on behalf of others159(2) Income Tax Act - Section 159 - Subsection 159(2) payment of purchase price by purchaser to trust account of its lawyer or purchaser’s lawyer for discharge first of non-CCRA debts did not engage s. 159(2)
Income Tax Act - Section 248 - Subsection 248(1) - Legal Representative establishment for the purchaser of a trust account to pay vendor’s debts did not render it a legal representative of the vendor
10 January 2002 External T.I. 2001-0112885 F - ASSURANCE-VIE ET PRET REMBOURSE AU DECES Income Tax Act - Section 148 - Subsection 148(9) - Policy Loan GAAR could apply where a life insurance policy is pledged for a loan that is not required to be repaid until after death
Income Tax Act - Section 15 - Subsection 15(1) benefit may result from pledging a corporate asset to secure a personal loan
Income Tax Act - Section 207.6 - Subsection 207.6(2) overview of employer use of life insurance policy to fund RCA benefits
14 January 2002 External T.I. 2001-0114035 F - ECHANGE D'ACTIONS ET PARAGRAPHE 9001(2) Income Tax Regulations - Regulation 9001 - Subsection 9001(2) - Paragraph 9001(2)(b) share exchange must be with the original share issuer
Income Tax Regulations - Regulation 9001 - Subsection 9001(2) - Paragraph 9001(2)(a) shares will remain prescribed shares if the corporation ceases to be a QSBC after one year
14 December 2001 Internal T.I. 2001-0114320 F - CADEAUX ON RECOMPENSES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) new gift policy does not apply to gifts made to shareholders or their family members
25 January 2002 External T.I. 2001-0114615 F - CONTRAT DE RENTE PRESCRITE ET FIDUCIE Income Tax Regulations - Regulation 304 - Subsection 304(3) - Paragraph 304(3)(a) a beneficiary of a trust holding an annuity contract is not necessarily deemed to be the annuitant

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