Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-04-27 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
8 March 2001 External T.I. 2000-0048405 F - Usufruit sur immeuble en France Income Tax Act - Section 248 - Subsection 248(3) s. 248(3) and 75(2) subject bare owner to tax on rental income under Quebec usufruct/ the converse if a French usufruct
14 December 2000 Internal T.I. 2000-0057927 F - Bénéfices relatifs à des ressources Income Tax Regulations - Regulation 1204 - Subsection 1204(1) income or loss computed in accordance with the Act, so that book gain excluded
9 January 2001 Internal T.I. 2000-0058047 F - FRAIS JURIDIQUES Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees director’s legal fees incurred re his liability for unpaid corporate GST were non-deductible
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) debt of corporation to a director arising from his discharge of joint and several liability for unpaid taxes was not a debt acquired for income-producing purpose
26 March 2001 External T.I. 2000-0060185 F - Évaluation actions assurance-vie décès Income Tax Act - Section 70 - Subsection 70(5.3) allocation of CSV of corporate life insurance policy among different classes of life insurance shares
19 March 2001 External T.I. 2001-0063345 F - RS & DE - MANDATAIRE Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(E) organization did not qualify under s. 37(1)(a)(ii)(E) because it made disbursements only as agent
23 February 2001 External T.I. 2001-0066265 F - Salaire différé français Income Tax Act - Section 3 - Paragraph 3(a) receipt of “deferred salary,” pursuant to a right established by French legislation, as compensation for contribution to the family farm was not income
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) - Subparagraph (b)(ii) receipt of “deferred salary,” pursuant to a right established by French legislation, was not a pension given no previous employer-employee relationship
Income Tax Act - Section 248 - Subsection 248(1) - Property “deferred salary” right of farmer descendant was a debt
Treaties - Income Tax Conventions - Article 18 receipt of “deferred salary,” pursuant to a right established by French legislation, was not a pension given no previous employer-employee relationship
2 March 2001 External T.I. 2001-0069555 F - Dividendes - (U.S. spin-off) Income Tax Act - Section 86.1 - Subsection 86.1(2) detailed review of proposed s. 86.1
Income Tax Regulations - Regulation 201 - Subsection 201(2) T5 reporting obligation of broker also applies to s. 86.1 spin-off
2001-03-16 28 February 2001 External T.I. 2000-0016765 F - All or substantially all Income Tax Act - Section 54.2 CRA is prepared to issue rulings on the application of the all or substantially all test in s. 54.2, which is not necessarily a 90% of FMV test
Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(ii) - Clause 110.6(14)(f)(ii)(A) all or substantially all test in s. 110.6(14)(f)(ii)(A) is generally but not always a 90% of FMV test

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