Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-05-25 10 May 2001 Internal T.I. 2001-0066107 F - TABLE RONDE - QUESTION 32 Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) absence of cost step-up to s. 69(1)(b) transferee does not produce a capital gain on subsequent disposition due to such gain being recapture pursuant to s. 13(7)(e)(iii)
25 May 2001 External T.I. 2001-0067415 F - CONSOLIDATION DE PERTES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) related-person loss transfer transactions must be commercially reasonable to satisfy s. 20(1)(c)
Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) CCRA loss consolidation policy is available where Profitco’s income is FAPI/ requirements re transactions being commercially reasonable
15 May 2001 External T.I. 2001-0071085 F - FABRICATION AU CANADA Income Tax Regulations - Regulation 5202 - Qualified Activities product development, design and conception work was part of the manufacturing of those products, but such manufacturing took place outside Canada
29 May 2001 External T.I. 2001-0075245 F - SOCIETE DE GESTION DE PENSION Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(i) s. 149(1)(o.2)(i) corporation can be incorporated for the administration of more than one RPP – but cannot be incorporated to provide management services to other RPPs
Statutory Interpretation - Interpretation Act - Subsection 33(2) reference to administration of one pension plan included two or more
23 May 2001 External T.I. 2001-0077855 F - PLACEMENT ADMISSIBLE REER Income Tax Regulations - Regulation 4900 - Subsection 4900(8) did not extend to services rendered in connection with the company’s incorporation
16 May 2001 External T.I. 2001-0080495 F - OPTION D'ACHAT D'ACTIONS Income Tax Act - Section 7 - Subsection 7(1.1) CCPC status tested at time of stock option agreement
2001-05-11 27 April 2001 External T.I. 2000-0057055 F - INTERETS/OBLIGATIONS A COUPONS DETACHES Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(b) application of Reg. 7000(2)(b) to acquisition of bond stripped of interest coupons
18 April 2001 External T.I. 2001-0074995 F - Indemnité journalière de grossesse de France Income Tax Act - Section 3 - Paragraph 3(a) French maternity allowances were taxable
2001-04-27 12 April 2001 External T.I. 2000-0050655 F - ASSURANCE MUTILATION/INVALIDITE Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (h) disability benefits under a policy providing life and accidental death and dismemberment insurance could be non-taxable
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account personal injury amounts received pursuant to life insurance policy not added to CDA
23 March 2001 Internal T.I. 2000-0056097 F - Roulement interne Income Tax Act - Section 84 - Subsection 84(1) s. 84(1) deemed dividend where individual’s low-PUC common shares are exchanged with the corporation for high-PUC preferred shares and there is an s. 85(1) agreed amount at FMV
17 April 2001 External T.I. 2000-0056455 F - AVANTAGE IMPOSABLE-EMPLOYE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) the distribution of employer shares to employees as beneficiaries of a discretionary trust is a s. 6(1)(a) benefit if it has the slightest connection to their employment
2 February 2001 Internal T.I. 2000-0058127 F - Convention d'émission d'actions Income Tax Act - Section 7 - Subsection 7(2) s. 7(2) could apply if shares were held by the employer for later acquisition by the employee
19 April 2001 Internal T.I. 2001-0069067 F - PENSION ALIMENTAIRE ACCORD ECRIT Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount submitted documents were not a written agreement
17 April 2001 External T.I. 2001-0074915 F - Fonds commun de placement - Disposition Income Tax Act - Section 248 - Subsection 248(1) - Disposition change in taxable account through which MFT units are held does not entail their disposition
10 April 2001 External T.I. 2001-0078035 F - RAP PERSONNE DIVROCEE Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) divorced individual was eligible notwithstanding ownership during their marriage of home by ex-spouse
2001-04-13 12 March 2001 Internal T.I. 2000-0037637 F - Partie 1.3 Aide gouvernementale/Surplus Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(a) government grants were other surplus
Income Tax Act - Section 181 - Subsection 181(3) grants deducted from carrying value of capital assets and disclosed in the notes were reflected on the balance sheet
15 September 2000 Internal T.I. 2000-0038337 F - RETENUES A LA SOURCE-REMUNERATION Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) directors’ settlement of liability for unpaid remuneration of bankrupt corporation was subject to s. 153(1)(a) withholding
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration directors’ settlement payment of liability for unpaid employee remuneration of bankrupt corporation was subject to source deductions as “remuneration”
9 February 2001 Internal T.I. 2000-0055757 F - ALLOCATION PERIODIQUE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amounts paid to ex-wife each time she took the 2 children were not allowances since there was no regularity to the visits
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) s. 118(1)(b) credit available where sporadic amounts required to be paid to ex-wife when the children visited her did not qualify as support amounts
5 April 2001 External T.I. 2000-0058445 F - Entreprise de gestion et REATB Income Tax Act - Section 95 - Subsection 95(1) - Investment Business a management services business was not an investment business
Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(b) s. 95(2)(b) application to provision of services to rental partnerships
29 March 2001 External T.I. 2001-0064585 F - Application de 13(21.2)e)(iii)(C) Income Tax Act - Section 13 - Subsection 13(21.2) - Paragraph 13(21.2)(e) - Subparagraph 13(21.2)(e)(iii) - Clause 13(21.2)(e)(iii)(C) s. 13(21.2)(e)(iii)(C) is not engaged when the affiliated transferee becomes a non-resident
26 March 2001 External T.I. 2001-0070165 F - Conventions fiscales et lois provinciales Treaties - Income Tax Conventions - Article 12 Canada will not reduce its withholding rate to 0% to make room for Quebec taxes imposed on the same property income
Treaties - Income Tax Conventions - Article 2 Canada has no obligation to absorb Quebec taxes imposed on property income with treaty-reduced withholding
28 March 2001 External T.I. 2001-0070415 F - Interaction entre les articles 51 et 116 Income Tax Act - Section 51 - Subsection 51(1) on a s. 51 exchange, the corporation is considered to have acquired the exchanged shares at a cost equal to the PUC of the shares issued by it
Income Tax Act - Section 116 - Subsection 116(5) acquisition of the exchanged shares by the corporation on a s. 51 exchange at a cost equal to PUC of issued shares
Income Tax Act - Section 54 - Adjusted Cost Base a corporation acquires shares in its capital on a s. 51 exchange at a cost equal to the PUC of the shares issued therefor
Income Tax Act - Section 116 - Subsection 116(6) - Paragraph 116(6)(a) s. 116(6)(a) does not apply to shares acquired by Canco on a s. 51 exchange of Canco shares
26 March 2001 External T.I. 2001-0070585 F - Interaction entre Convention Canada-US et LIR Treaties - Income Tax Conventions - Article 13 Art. XIII(5) of Canada-US treaty applies to disposition of Amalco shares that were exchanged on the amalgamation for shares subjected to a deemed disposition under s. 128.1(4)(b)
2 March 2001 Internal T.I. 2001-0070687 F - REGIME D'ASSUR. MEDICAMENTS DU QUE. Income Tax Act - Section 118.2 - Subsection 118.2(1) unlike Quebec, prescription drug premiums for a year are not recognized until their payment
29 March 2001 External T.I. 2001-0071825 F - Application de 132(6) et 132(6.1) Income Tax Act - Section 132 - Subsection 132(6.1) if trust did not have 150 beneficiaries by the 90th-day deadline, it can only qualify prospectively as a MFT after satisfying the conditions
30 March 2001 Internal T.I. 2001-0074087 F - DEPENSES POUR SITE WEB Income Tax Regulations - Schedules - Schedule II - Class 14.1 part of purchase price for existing website may be attributable to clientele and goodwill
2001-03-30 11 January 2001 Internal T.I. 2000-0037167 F - CLAUSE D'AJUSTEMENT DE PRIX Income Tax Act - Section 54 - Adjusted Cost Base post-closing indemnity payments received by purchaser reduced the ACB of its purchased shares
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) damages received by share purchaser reduced the ACB of its shares and were not a taxable capital gain
19 October 2000 Internal T.I. 2000-0047267 F - VERSEMENT PENSION PERIODE DETERMINEE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount monthly amounts paid to Madame might not be support amounts if not paid for her support

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