Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-02-02 31 January 2001 External T.I. 2000-0050465 F - TRANSFERT D'UN BIEN AGRICOLE Income Tax Act - Section 73 - Subsection 73(3) immediately “before the transfer” referenced a period of less than three years
2001-01-19 5 January 2001 External T.I. 2000-0010905 F - Valuation - Freeze shares Income Tax Act - Section 86 - Subsection 86(1) right to retract freeze preferred shares must not be fettered
General Concepts - Fair Market Value - Shares requirement to seek consent detracts to retraction detracts from FMV of freeze preferred shares
4 January 2001 External T.I. 2000-0047605 F - FRAIS DE DIVERTISSEMENT Income Tax Act - Section 67.1 - Subsection 67.1(1) attending shows in order to identity artist recruits might be entertainment
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) s. 67.1(2)(a) exception unavailable for tickets to shows attended to recruit artists
10 January 2001 External T.I. 2000-0049585 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) annual payment cap on interest until maturity did not preclude deductibility
5 January 2001 Internal T.I. 2000-0053767 F - IT-92R2 Paragraphe 1 Income Tax Act - Section 9 - Timing progress method per IT-92R2 could be used by supplier of kitchen equipment if installed by it pursuant to the building construction plans and title thereto thereupon vested in the building owner
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) construction holdbacks not receivable until approved for release
2001-01-05 19 December 2000 Internal T.I. 2000-0009277 F - Fosse pour traitement du fumier Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) manure pit was a Class 1(q) structure
Income Tax Act - Section 30 costs of drainage system for farmer’s manure pit were deductible
19 December 2000 External T.I. 2000-0035685 F - RPA TRANSFER AU DECES Income Tax Act - Section 147.3 - Subsection 147.3(7) deceased member can have had more than one qualifying spouse or partner
14 September 2000 Internal T.I. 2000-0035797 F - ALLOCATION DE SEJOUR Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(iii) representation allowance must cover additional expenses from being posted abroad
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) purpose of s. 6(6)/ meaning of “temporary” duties and “maintained” re foreign internship
19 December 2000 Internal T.I. 2000-0049197 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on money borrowed to acquire a mutual fund unit or common share that can only yield capital gains is not deductible
15 December 2000 External T.I. 2000-0049645 F - CHANGEMENT PARTIEL D'USAGE RESIDENCE Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) basement rented out on a cost-recovery basis to husband’s corporation likely did not represent an income-producing use
15 December 2000 Internal T.I. 2000-0052397 F - PRESTATIONS RETROACTIVES DE LA CSST Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) worker’s compensation received by the mother as compensation to the child was included in her income on receipt
19 December 2000 Internal T.I. 2000-0054467 F - VALEUR DU DON D'UNE POLICE D'ASSURANCE Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gift amount of a life insurance policy to be assigned
2000-12-22 6 December 2000 External T.I. 2000-0001345 F - POLICES FONDS DISTINCTS Income Tax Act - Section 138.1 - Subsection 138.1(1) exercise of a guarantee in excess of the premium paid
30 November 2000 External T.I. 2000-0002855 F - Emigration disposition réelle convention Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) - Subparagraph 128.1(4)(b)(iv) application of s. 128.1(4)(b)(iv) exception to US stock market portfolio
Income Tax Act - Section 220 - Subsection 220(4.5) return of s. 220(4.5) security only when s. 128.1(6) applied
19 September 2000 External T.I. 2000-0018505 F - COMPENSATION DE XXXXXXXXXX Income Tax Act - Section 43 - Subsection 43(1) taxpayer not permitted to treat proceeds from grant of option under expropriation proceeds, exceeding the 20% IT-264R threshold, as equalling the ACB of the property disposed of
15 December 2000 External T.I. 2000-0029125 F - POMPIER VOLONTAIRE Income Tax Act - Section 81 - Subsection 81(4) detailed guidelines on the application of s. 81(4)
25 October 2000 Internal T.I. 2000-0044547 F - REGIME DE PRESTATIONS AUX EMPLOYES Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan job security fund was an EBP
21 September 2000 Internal T.I. 2000-0046180 F - Remboursement de dépenses Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) settlement agreement compensation for mortgage (including principal) payments that B had paid on a mortgage that A assumed as of an earlier partition date, was s. 12(1)(x)(iv) income to B
29 November 2000 Internal T.I. 2000-0051437 F - PROGRAMME SPRINT Income Tax Act - Section 118.62 S.P.R.I.N.T. loans did not qualify as being made pursuant to a similar provincial statute
6 December 2000 External T.I. 2000-0056385 F - Interactions entre 120.4 et 104(14) Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income split income definition does not apply to income allocated to preferred beneficiary that has not been designated as a dividend under s. 104(19)
2000-12-08 4 December 2000 External T.I. 2000-0001715 F - Qualified small business corporation share Income Tax Act - Section 48.1 - Subsection 48.1(1) s. 48.1 election could be made respecting the accrued capital gain on shares that ceased to be QSBCS on a narrowing of the CCPC definition re a connected corp.
Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (c) para. (c) relevant where Holdco’s asset was shares of Opco but Opco shares also were held by Pubco
30 November 2000 External T.I. 2000-0026615 F - GAAR Income Tax Act - Section 83 - Subsection 83(2) streaming of CDA to particular shareholders is not abusive if s. 83(2.1) is complied with
Income Tax Act - Section 83 - Subsection 83(2.1) CDA streaming generally does not violate s. 83(2.1) or GAAR where the objective is to pay capital dividends to taxpayers who were already shareholders
Income Tax Act - Section 245 - Subsection 245(4) CDA streaming between existing shareholders is generally acceptable
28 November 2000 External T.I. 2000-0027835 F - regime prive d'assur.-maladie Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(q) supplementary medical coverage purchased by individuals as part of other coverage could qualify under s. 118.2(2)(q)
Income Tax Act - Section 20.01 - Subsection 20.01(1) component of life insurance policy purchased by self-employed individuals that provided supplementary medical coverage could qualify under s. 20.01(1)
16 November 2000 Internal T.I. 2000-0035067 F - ALLOCATION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance damages received for terminated bonus arrangement and stock option plan were a retiring allowance
Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) damages received for terminated stock option plan were a retiring allowance rather than taxable under s. 7(1)(b)
28 September 2000 Internal T.I. 2000-0041017 F - ALLOCATION POUR LOGEMENT Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) allowance to cover increased housing costs was taxable
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) stay of over 2 years was not “temporary”
1 November 2000 Internal T.I. 2000-0043847 F - Distribution par fiducie non résidente Income Tax Act - Section 104 - Subsection 104(13) distribution of taxable capital gain from non-resident trust was not an exempted “distribution of capital” under s. 104(3)(c)(ii)
5 December 2000 External T.I. 2000-0047515 F - Impôts financiers intérêts terrain vacant Income Tax Act - Section 10 - Subsection 10(1) interest and property taxes may be added to the cost of real estate inventory on general principles
15 November 2000 External T.I. 2000-0048015 F - Revenu imposable gagné dans une province Income Tax Regulations - Regulation 402 - Subsection 402(3) - Paragraph 402(3)(a) where Aco continues as employer for the balance of the year following the business transfer to Bco, it rather than Bco must reflect their payroll under Reg. 402(3), cf. if employs as agent

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