Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-10-26 29 October 2001 External T.I. 2001-0075565 F - FRAIS DE SEJOUR ET ALLOCATIONS POUR REPAS Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) meaning of “temporary nature” and distance test
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) meal allowance paid to employees working at least 3 hours of overtime, on an infrequent basis, may be non-taxable
14 November 2001 External T.I. 2001-0086765 F - FRAIS DE REPRESENTATION-EXCEPTION Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(c) s. 67.1(2)(c) exception is not precluded where the specific reimburser is a non-resident
8 November 2001 External T.I. 2001-0096435 F - Sous-alinéa 75(2)(a)(i) de la Loi Income Tax Act - Section 75 - Subsection 75(2) - Paragraph 75(2)(a) - Subparagraph 75(2)(a)(i) s. 75(2) does not apply by virtue of the trust property reverting to the settlor by operation of law
16 November 2001 Internal T.I. 2001-0097587 F - COPRODUCTION-DROIT D'AUTEUR Income Tax Regulations - Regulation 1106 - Subsection 1106(12) description of ruling letter regarding licensing of copyright by qualified corporation to UK co-producer and licence back
Income Tax Act - Section 248 - Subsection 248(1) - Disposition licence to UK co-producer of rights, as copyright co-owner, to exploit its co-ownership rights outside Canada but with the licence back of those rights by the UK partnership licensee of the UK co-producer, did not constitute a copyright disposition
16 November 2001 Internal T.I. 2001-0099927 F - INTERETS PAYES SUR PRET POUR ORDINATEUR Income Tax Act - Section 118.62 interest on loan for the purchase of a microcomputer obtained under the loan guarantee program of the Aide financière aux études did not qualify
8 November 2001 External T.I. 2001-0103375 F - Décès du rentier Income Tax Act - Section 70 - Subsection 70(3) s.60(l)(ii)(B) annuity amounts, or entitlements thereto as trust income beneficiary, were rights and things
7 November 2001 External T.I. 2001-0103805 F - SENS D'ACTIFS Income Tax Act - Section 61.3 - Subsection 61.3(1) - Paragraph 61.3(1)(b) future income tax asset under GAAP is an asset
2 November 2001 External T.I. 2001-0107425 F - FONDS RESERVES ET BIENS ETRANGERS Income Tax Act - Section 206 timing of foreign property rules for segregated funds
2001-10-12 24 April 2001 Internal T.I. 2000-0037677 F - DEBENTURES CONVERTIBLES Income Tax Act - Section 143.3 - Subsection 143.3(3) - Paragraph 143.3(3)(a) - Subparagraph 143.3(3)(a)(ii) under pre-s. 143.3 Act, where shares issued for property, the shares’ stated capital determines the property’s cost, whereas the cost of the shares to the shareholder is their FMV
26 April 2001 Internal T.I. 2000-0046367 F - DEBENTURES CONVERTIBLES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) shares issued on conversion of debenture for their stated capital (equal to debenture face amount) rather than higher FMV, so that they were not repaid at a premium
Income Tax Act - Section 54 - Adjusted Cost Base where shares issued for property, the shares’ stated capital determines the property’s cost, whereas the cost of the shares to the shareholder is their FMV
Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital stated capital of shares issued determined in board’s discretion and may be less than their FMV
29 March 2001 Internal T.I. 2000-0059117 F - PROVISION POUR GARANTIES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(l.1) partnership is not eligible for the s. 20(1)(l.1) reserve/ providing guarantees is not providing insurance
1 June 2001 Internal T.I. 2001-0067047 F - DOMMAGES DISCRIMINATION Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance damages for loss of income from employment due to discrimination were not a retiring allowance or otherwise taxable
30 October 2001 External T.I. 2001-0070655 F - COMMISSION VENDEUR D'ASSURANCE-VIE Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit commission received by self-employed life insurance broker for the purchase of a policy for his own account, was not taxable unless it was substantial
22 October 2001 External T.I. 2001-0070715 F - ALLOCATIONS AUTOMOBILES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) car allowance was not a non-taxable advance because it was not required to be repaid if it exceeded the business kilometres
24 October 2001 External T.I. 2001-0074385 F - GAINS ET PERTES EN CAPITAL Income Tax Act - Section 96 - Subsection 96(1.7) numerical illustration of application of s. 6(1.7) formula re increase in capital gains inclusion rate
2 August 2001 External T.I. 2001-0074575 F - Désignation - Validité Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) overstatement of designation due to misestimate does not invalidate the designation
23 October 2001 External T.I. 2001-0074885 F - LOCAL DE TRAVAIL A DOMICILE Income Tax Act - Section 8 - Subsection 8(13) - Paragraph 8(13)(a) sales reps who performed most of their duties on the road could not satisfy s. 8(13)(a)(i) or (ii)
27 June 2001 Internal T.I. 2001-0084627 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 248 - Subsection 248(1) - Business to be a business, there need not be a predominant purpose of earning a profit
23 October 2001 External T.I. 2001-0090295 F - choix de ne plus être une société publique Income Tax Regulations - Regulation 4803 - Subsection 4803(1) - Insider of a Corporation Buyco acquiring all the target shares was an insider of a corporation
30 July 2001 External T.I. 2001-0091655 F - Produit de Disposition pour Action Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (a) proceeds of disposition on share-for-share exchange were the stipulated fixed sale price rather than the FMV of the received shares, absent rollover treatment
23 October 2001 External T.I. 2001-0092025 F - Fonds commun de placement à risques Income Tax Act - Section 96 French Fonds Commun de Placement à Risques was likely a co-ownership arrangement
29 October 2001 External T.I. 2001-0092035 F - association related persons Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) s. 251(5)(b)(i) applies differently than s. 256(1.4)(a) because it does not deem the subject shares to be outstanding
Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) crucially, s. 256(1.4)(a), unlike s. 251(5)(b)(i), deems the affected shares to be issued and outstanding
16 October 2001 Internal T.I. 2001-0095967 F - revenu protégé en main Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) premium paid on open-market repurchases of a corporation’s shares did not reduce the safe income on hand of its remaining shares
23 October 2001 External T.I. 2001-0096525 F - transfer and loans to corp-attribution rules Income Tax Act - Section 74.4 - Subsection 74.4(2) spouse was a specified shareholder where she was one of the beneficiaries of a discretionary trust holding more than 10% of the corporation’s shares
10 October 2001 Internal T.I. 2001-0097597 F - Emprunt auprès d'une banque étrangère Income Tax Act - Section 214 - Subsection 214(15) - Paragraph 214(15)(b) setup fees came within s. 214(15)(b)
15 October 2001 External T.I. 2001-0098315 F - PLACEMENT ADMISSIBLE REER Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Designated Shareholder - Paragraph (d) employees constitute a group if they collectively have control
Income Tax Regulations - Regulation 4901 - Subsection 4901(2.2) - Paragraph 4901(2.2)(b) IT-419, para. 13 re right of first refusal/ shotgun applies to application of Reg. 4901(2.2)(b)
Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Designated Shareholder - Paragraph (a) IT-419 position re right of first refusal/ shotgun applies to designated shareholder test
30 October 2001 External T.I. 2001-0100555 F - PERTE ET REER Income Tax Act - Section 40 - Subsection 40(3.3) suspended loss rule did not apply to sale by individual’s corporation to that individual’s RRSP
Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(g) an RRSP was not affiliated with its annuitant prior to s. 251.1(1)(g)
23 October 2001 Internal T.I. 2001-0102337 F - MONTANTS RECUS D'UNE EGLISE Income Tax Act - Section 3 - Paragraph 3(a) donations received by an evangelist from a foreign church in order to found and build up a Canadian church were taxable
2001-09-28 3 August 2001 External T.I. 2000-0060835 F - RESSOURCES D'HEBERGEMENT Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) requirements for s. 81(1)(h) exemption to apply to foster families
17 July 2001 External T.I. 2000-006174 F - BIENS D'INVENTAIRE Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables Ensite and Marconi exceptions to corporate investments of earnings being held on capital account
24 July 2001 External T.I. 2001-006547 F - RESERVE POUR GAIN EN CAPITAL Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) - Clause 40(1)(a)(iii)(C) no capital gains reserve where proceeds were received as shares which were not tradeable for a hold period
17 July 2001 External T.I. 2001-0068355 F - DEDUCTION D'UN BONI A UN EMPLOYE Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) bonus paid to manage investments would not be a disposition expense

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