Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-07-20 6 July 2001 External T.I. 2001-0086775 F - SOCIETE A CAPITAL DE RISQUE Income Tax Act - Section 204.81 - Subsection 204.81(1) - Paragraph 204.81(1)(c) - Subparagraph 204.81(1)(c)(vii) - Clause 204.81(1)(c)(vii)(C) transfer of LSVCC Class A share to the RRSP of transferor’s spouse would not result in recapture of the tax credit
5 July 2001 External T.I. 2001-0089105 F - ECHANGE D"OPTIONS - COUT INDIQUE Income Tax Act - Section 85 - Subsection 85(1) RRSP may make a s. 85(1) election
2001-07-06 14 June 2001 External T.I. 2000-0044935 F - Coût des actions Income Tax Act - Section 54 - Adjusted Cost Base cost to Pubco of CCPC shares acquired by it in exchange for treasury shares equal to the addition to its stated capital account, rather than the Pubco shares’ FMV
28 June 2001 External T.I. 2000-0060465 F - déductibilité - frais d'internet Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) internet costs incurred for investment research purposes were not deductible under s. 20(1)(bb)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training internet costs incurred for investment research purposes were capital expenditures
28 June 2001 External T.I. 2000-0061365 F - Frais de déplacement - athlètes Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) travel and accommodation expenses satisfying s. 18(1)(h) must also satisfy s. 18(1)(a)
Income Tax Act - Section 3 - Paragraph 3(a) receipts under Athlete Assistance Program are non-taxable
10 May 2001 External T.I. 2001-0066095 F - CREDIT-BAIL Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A following Shell, CCRA will only recharacterize a lease where the true legal relationship is not of a lease
Income Tax Act - Section 248 - Subsection 248(3) Construction Bérou did not comment on the CCRA’s current position on what is a lease
20 June 2001 External T.I. 2001-0066825 F - REGLES D'ATTRIBUTIONS Income Tax Act - Section 74.1 - Subsection 74.1(1) ss. 74(1) and (2) applied to dividends and taxable capital property received from the spouse before May 23, 1985
5 June 2001 External T.I. 2001-0067675 F - TRANSFERT D'ALLOCATIONS DE RETRAITE Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) years of service with former employer taken into account even if recognized solely for the purpose of limiting the reduction in the retirement benefit for early retirement
26 June 2001 External T.I. 2001-0068285 F - DATE DE DISPOSITION ACTIONS EN BOURSE Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (a) disposition date on a stock exchange is the settlement date, being the due date for the proceeds
28 June 2001 External T.I. 2001-0069865 F - CRÉDIT-BAIL Income Tax Act - Section 248 - Subsection 248(3) Construction Bérou interpretation of s. 248(3) was erroneous
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A Construction Bérou should not be followed in finding that a lessee can be the tax owner of the leased property
22 June 2001 External T.I. 2001-0075275 F - Dommages-intérêts Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) damages pursuant to Article 1617 of the CCQ, being damages resulting from delay in the performance of an obligation to pay a legacy, were taxable as interest
3 July 2001 Internal T.I. 2001-0076867 F - frais de garde-inscription Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense childcare centre annual registration fee is included
22 June 2001 Internal T.I. 2001-0078457 F - Décret remise d'impôt revenu gagné au Québec Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (a) gold royalty was neither TCP nor real property
28 June 2001 External T.I. 2001-0078935 F - waiving of dividend Income Tax Act - Section 15 - Subsection 15(1) CCRA will rule on whether s. 245(2) applies to a dividend waiver
14 June 2001 External T.I. 2001-0080085 F - Intérêt payé pour honorer une caution Income Tax Act - Section 20.1 - Subsection 20.1(1) s. 20.1(1) inapplicable where money borrowed to honour guarantee for wholly-owned insolvent corporation
14 June 2001 External T.I. 2001-0081885 F - Congé à traitement différé Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) a sabbatical leave, following a deferral period, can be taken before the date initially scheduled
29 May 2001 External T.I. 2001-0082675 F - CONGE A TRAITEMENT DIFFERE ET RETRAITE Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) employee may withdraw from the plan in special circumstances stipulated in the plan such as lay-off
7 June 2001 External T.I. 2001-0086165 F - REGLES DE ROULEMENT ET REER Income Tax Act - Section 85 - Subsection 85(1) ss. 85, 85.1, 86 and 87 apply to RRSPs and RRIFs
Income Tax Act - Section 87 - Subsection 87(4) s. 87(4) applies to RRSPs
Income Tax Act - Section 248 - Subsection 248(1) - Taxpayer RRSP is a taxpayer
20 June 2001 External T.I. 2001-0086505 F - RPEB - MONTANTS PERDUS Income Tax Act - Section 144 - Subsection 144(9) s.144(9) inapplicable until employee ceases to be a beneficiary
Income Tax Act - Section 144 - Subsection 144(1) - Employee Profit Sharing Plan payment to the employer of amounts forfeited by the employee could deny EPSP status
2001-06-22 19 June 2001 Internal T.I. 2000-0053887 F - STATUTE-BARRED YEARS - GST CREDIT Income Tax Act - Section 152 - Subsection 152(4) where a taxpayer claims a non-capital loss for a statute-barred year so that his GSTC is eliminated, CCRA cannot recover the overpaid GSTC
Income Tax Act - Section 122.5 - Subsection 122.5(3) a taxpayer’s non-capital loss claimed for a statute-barred year eliminated his GSTC for that year, without repayment thereof being required
19 June 2001 External T.I. 2000-0058665 F - CESSION DE PENSION ALIMENTAIRE Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) support payments assigned to the Ontario Ministry of Community and Social Services and paid in arrears in order to receive social assistance payments were not taxable
14 June 2001 External T.I. 2000-0060085 F - Transfert à une société Income Tax Act - Section 74.4 - Subsection 74.4(2) Holdco with one discretionary share in Opco (an SBC) and which received periodic purification dividends form Opco likely would not be an SBC
12 June 2001 External T.I. 2001-0072345 F - Émigrant du Canada et statut de résident Income Tax Act - Section 2 - Subsection 2(1) cessation of Canadian residency status not significantly affected by leaving adult children behind to pursue Canadian studies (who generally would continue as residents)
7 June 2001 External T.I. 2001-0079505 F - Gel suivi d'un rachat des actions priv. Income Tax Act - Section 248 - Subsection 248(10) issuance of preferred shares on freeze, and their redemption 3 years later, would be part of the same series
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income of common shares converted to pref under s. 51 was transferred to the pref/ non-cumulative pref dividends do not reduce safe income until declared
21 June 2001 External T.I. 2001-0086285 F - Disposition transitoire à 112(3) Income Tax Act - Section 112 - Subsection 112(3) condition in 1995 transitional provision for the financing of the redemption of a preferred share includes part of a share
Income Tax Act - Section 248 - Subsection 248(1) - Share condition re financing the redemption of a preferred share included part of a preferred share
General Concepts - Transitional Provisions and Policies transitional provision re “share” to be applied on a share-by-share basis
2001-06-08 18 May 2001 External T.I. 2000-0040405 F - Revenu protégé - options Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) ACB increase to options as a result of s. 52(1) reduced the safe income otherwise allocable to the shares acquired on the options’ exercise
Income Tax Act - Section 52 - Subsection 52(1) s. 15(1) benefit on stock option grant added to options’ cost under s. 52(1)
4 June 2001 External T.I. 2000-0047145 F - Revenu protégé - crédit impôt investis Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) investment tax credit does not reduce safe income
5 June 2001 External T.I. 2000-0055765 F - Revenu gagné en main Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) s. 85(1) exchange of common shares for preferred shares transferred the safe income on hand to the pref

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