Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-01-18 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
Income Tax Regulations - Regulation 304 - Subsection 304(1) - Paragraph 304(1)(c) - Subparagraph 304(1)(c)(iv) - Clause 304(1)(c)(iv)(B) requirement of fixed term where holder is a trust other than under s. 104(4)(a)
14 January 2002 External T.I. 2001-0116225 F - DOMMAGE SUBI PAR UN REER ET INDEMNITE Income Tax Act - Section 146 - Subsection 146(1) - Premium payment by broker of damages to RRSP was not a premium
Income Tax Act - Section 146 - Subsection 146(8) payment by broker of damages to RRSP was not a benefit to annuitant
28 January 2002 External T.I. 2002-0116635 F - REEE-REGLE D'ATTRIB. ET PERT NULLE Income Tax Act - Section 74.3 - Subsection 74.3(1) - Paragraph 74.3(1)(a) s. 74.1(2) does not apply where a taxpayer transfers property to an RESP
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) s. 40(2)(g) does not apply on a transfer to an RESP
7 February 2002 External T.I. 2002-0118535 F - REMBOURSEMENT DE PRIMES - ENFANT MINEUR Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums - Paragraph (b) financial dependence condition can be established even where child not living with parent
2002-01-04 21 January 2002 External T.I. 2001-0078735 F - Droit de recevoir une somme Income Tax Act - Section 54 - Proceeds of Disposition FMV of contingent right to deferred cash sales proceeds was included in proceeds, with subsequent gain or loss when the contingency was resolved
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) s. 12(1)(g) inapplicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration declined in value
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(f) s. 85(1)(f) applicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration received under s. 85(1) declined in value
21 January 2002 External T.I. 2001-0080325 F - FRAIS DE VOYAGE-BIENS LOCATIFS Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) notwithstanding s. 18(1)(h) jurisprudence, CCRA allows travel expenses incurred for collecting rent, supervising repair work or managing the multiple rental properties
9 January 2002 External T.I. 2001-0089655 F - AVANTAGE AUTOMOBILE Income Tax Act - Section 6 - Subsection 6(2) being on-call at home does not diminish the personal benefit from use
Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(i) 6-seat pickup not excluded from 90% test
10 January 2002 External T.I. 2001-0090325 F - UTILISATION DES VEHICULES Income Tax Act - Section 6 - Subsection 6(2) commuting in connection with employer requirement to keep vehicle overnight at home was personal use – but not emergency use
18 January 2002 External T.I. 2001-0092665 F - AUTOMOBILE-VEHICULE PUBLICITAIRE Income Tax Act - Section 248 - Subsection 248(1) - Automobile automobile status turns on design, not use (here, only for advertising)
Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(i) vehicle cosmetically altered for advertising purposes is not thereby used to transport goods or equipment
8 January 2002 External T.I. 2001-0094485 F - EMPLOI SUR UN CHANTIER PARTICULIER Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) s. 6(6) applicable to a non-citizen
2 January 2002 External T.I. 2001-0094555 F - Subsidies and Assistance Payments Income Tax Act - Section 13 - Subsection 13(7.1) government assistance to subsidize the interest costs on a loan applied for expansion purposes did not reduce UCC under s. 13(7.1)
2001-12-21 9 January 2002 External T.I. 2001-0075825 F - CII-LIQUIDATION Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(e.2) parent has an s. 12(1)(t) inclusion in its year beginning after the winding-up if the sub claimed winding-up year ITCs respecting depreciable property which it sold before wind-up
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(t) application of s. 12(1)(t) to parent in the year following the s. 88(1) wind-up of sub
19 December 2001 External T.I. 2001-0077175 F - FRAIS ENCOURUS POUR UNE INVENTION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs business may have commenced with incurring costs to obtain a temporary patent
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) costs of patent agent, provisional patent application and consulting lawyers deductible under s. 20(1)(cc)
8 January 2002 External T.I. 2001-0084115 F - SOMMES RECUES D'UN SYNDICAT Income Tax Act - Section 3 - Paragraph 3(a) amounts received from union by members for making a referral of a non-employee leading to certification application, are not from a source
7 January 2002 External T.I. 2001-0089585 F - AUTOMOBILE DETENUE EN COPROPRIETE Income Tax Act - Section 6 - Subsection 6(2) standby based on corporation’s cost where it purchases a co-ownership interest in the automobile
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) no s. 6(1)(k) benefit where timely expense reimbursement by employee
21 December 2001 External T.I. 2001-0091615 F - PART-SOCIETE DE PERSONNES AGRICOLE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property - Paragraph (a) farm acquired by a family partnership from a farmer was not held by it for 24 months so that interests in the partnership did not qualify as qualified farm property
3 January 2002 External T.I. 2001-0109425 F - REER TITE D'UNE SOCIETE EN FAILLITE Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) share of now-bankrupt corporation can continue to be held by RRSP
Income Tax Regulations - Regulation 4900 - Subsection 4900(14) Reg. 4900(12) share continues as qualified investment following bankruptcy
2001-12-07 7 November 2001 External T.I. 2001-0092105 F - Traitement fiscal - dommages-intérêts Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) damages that include an award of interest for the delay in paying the disputed amount constitutes interest income, even if paid out of after-tax income
19 November 2001 External T.I. 2001-0096455 F - Bien agricole admissible Income Tax Act - Section 70 - Subsection 70(10) - Child application of extended definition of “child” to qualified farm property determination
19 November 2001 External T.I. 2001-0098455 F - Employés à l'étranger - production de T4 Income Tax Regulations - Regulation 200 - Subsection 200(1) any payer of salaries must prepare T4s even if not the employer and employees are non-resident
30 November 2001 External T.I. 2001-0100125 F - Traitement fiscal fiducies-sûreté Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (j) exclusions from a disposition under para. (c) on a transfer to a trust do not extend to para. (j) exclusion

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