Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
3 November 2000 Internal T.I. 2000-0049127 F - CONJOINT DE FAIT DECEDE-CHOIX Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner an individual’s common–law partner election could be made by his executor
Income Tax Act - Section 248 - Subsection 248(1) - Person a person can make an election through his executor
Income Tax Act - Section 85 - Subsection 85(1) election by a person can be made by his executor
27 November 2000 Internal T.I. 2000-0054447 F - Interprétation installation - emploi Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) - Subparagraph 122.3(1)(b)(i) - Clause 122.3(1)(b)(i)(B) installation” can include software coordination and implementation
1 December 2000 Internal T.I. 2000-0055167 F - fiscal year Income Tax Act - Section 249.1 - Subsection 249.1(7) year end change not granted to extend period of CCPC status
5 December 2000 External T.I. 2000-0055815 F - Grief réglé après décès Income Tax Act - Section 5 - Subsection 5(1) retroactive salary adjustment that was not determined by tribunal until after employee’s death not taxable to him or estate (although heirs were taxable on interest component)
Income Tax Act - Section 70 - Subsection 70(2) retroactive salary adjustment that was not determined by tribunal until after employee’s death was not a right or thing at death
10 November 2000 External T.I. 1999-0008375 F - Associates corporations Income Tax Act - Section 186 - Subsection 186(2) example of s. 186(2) also encompassing de jure control
16 November 2000 External T.I. 1999-0009895 F - Revenu protégé - voiture de tourisme Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) computing safe income on hand where ECE realized, scrapped depreciable property, borrowing cost incurred or disposition of passenger vehicle
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees reorganization expenses are eligible capital expenditures (now Class 14.1)
Income Tax Act - Section 13 - Subsection 13(2) overview of ss. 13(2) and 20(16.1)
2000-11-24 16 November 2000 External T.I. 2000-0035815 F - OPTION D'ACHAT D'ACTION General Concepts - Effective Date CCRA could not accommodate re-doing the exercise of stock options
9 November 2000 External T.I. 2000-0038955 F - CLAUSE DE CAPACITE DE GAIN Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) ascertaining 5-year earnout period / meaning of “calculated with certainty”
7 November 2000 External T.I. 2000-0040615 F - OPTIONS ET CLAUSE DE CAPACITE DE GAIN Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) IT-426 cost-recovery method not available where earnout is embedded in the variable proceeds received for the granting of a share-sale option with nominal exercise price
Income Tax Act - Section 49 - Subsection 49(1) granting of earnout option may require full recognition under s. 49(1) on grant date/ legal form of option v. share sale generally followed
15 November 2000 External T.I. 2000-0041165 F - Action admissible de petite entreprise Income Tax Act - Section 104 - Subsection 104(21.2) - Paragraph 104(21.2)(b) beneficiary is deemed to have disposed of the QSBCS
7 November 2000 External T.I. 2000-0041815 F - ALLOC. POUR FRAIS DE DEPLACEMENT Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) payment of fixed allowance for travel falling within a specified kilometers range did not satisfy s. 6(1)(b)(x)
3 November 2000 External T.I. 2000-0047535 F - CHNT USAGE-UN IMMEUBLE Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(b) - Subparagraph 13(7)(b)(ii) - Clause 13(7)(b)(ii)(B) change in use of unit in 4-plex from personal to rental and vice versa
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) building of the taxpayer with 4 units treated as 4 separate properties for purposes of the change-in-use rules
31 October 2000 Internal T.I. 2000-0048427 F - PENSION ALIMENTAIRE-ARRERAGES Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amount of support can be payable under a court order although the amount paid is less
10 November 2000 External T.I. 1999-0008335 F - inclusion revenu exonéré - convention fiscale Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(a) requirement to include a treaty-exempt receipt in income
2000-11-10 25 October 2000 External T.I. 2000-0017065 F - CONVENTION DE RETRAITE ET ASSURANCE Income Tax Act - Section 207.6 - Subsection 207.6(2) no Pt. XI.3 tax to RCA trust on withdrawals from the life insurance policy funding the RCA
13 October 2000 Internal T.I. 2000-0042477 F - depenses d'emploi-vendeur valeurs mobiliers Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) - Subparagraph 8(1)(f)(ii) requirement to perform duties away from the office can be implied
18 September 2000 Internal T.I. 2000-0043647 F - Perte transfert bâtiment personne affiliée Income Tax Act - Section 13 - Subsection 13(21.2) - Paragraph 13(21.2)(b) proceeds of disposition of a building are determined first under s. 13(21.1) before applying s. 13(21.2)(b)
Income Tax Act - Section 13 - Subsection 13(21.1) s. 13(21.1) applied first before stop-loss rule in s. 13(21.2) applied
2000-10-27 19 October 2000 External T.I. 2000-0027795 F - SOCIETES PRIVEES SOUS CONTROLE CDN Income Tax Act - Section 125 - Subsection 125(3) corporations controlled by the provincial Crown, required to share their business limit

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