Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-07-21 5 July 2000 External T.I. 2000-0019085 F - Mesure transitoire General Concepts - Transitional Provisions and Policies a pre-announcement date shareholders’ agreement requiring share redemptions after the announcement date satisfied grandfathering relief for transactions required to be carried out
28 June 2000 External T.I. 2000-0020025 F - OSBL - Loi des compagnies, Partie 1A Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) share corporation can potentially qualify as a NPO
30 June 2000 External T.I. 2000-0026625 F - Exercice financier - 249.1 Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(b) - Subparagraph 249.1(1)(b)(ii) s. 249.1(1)(b)(ii)(C) does not apply where a member partnership was previously subject to s. 249.1(1)(b)(ii) but was not so subject when it became a member of this partnership
29 June 2000 External T.I. 2000-0026635 F - APPLICATION 40(3.12) SUITE A 98(6) Income Tax Act - Section 40 - Subsection 40(3.12) s. 98(6) permitted accessing of s. 40(3.12) after conversion of LP to general partnership
Income Tax Act - Section 98 - Subsection 98(6) s. 98(6) applied on conversion of limited partnership to general partnership
28 June 2000 External T.I. 2000-0028665 F - QUOTAS DÉTENUS DEPUIS MOINS DE DEUX ANS Income Tax Act - Section 85 - Subsection 85(1) taxpayer can order properties (e.g., milk quotas) disposed of on s. 85(1) partial rollover transaction so that the only capital gain is realized on CGD-eligible property
6 July 2000 External T.I. 2000-0029765 F - CREDIT TPS Income Tax Act - Section 122.5 - Subsection 122.5(5) - Paragraph 122.5(5)(c) GST credit cannot be paid after death
17 July 2000 External T.I. 2000-0031155 F - Approved Association Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(A) questions CCRA asks on requests for approval
2000-07-07 4 May 2000 Internal T.I. 2000-0007667 F - PENSION ALIMENTAIRE - DISCRETION Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amounts paid were not support amounts where recipient was required to provide support showing their application to particular expenses
12 May 2000 Internal T.I. 2000-0008237 F - Round table question 6 - Quebec CGA Income Tax Act - Section 17 - Subsection 17(2) application of s. 17(2) to share subscription by Canco to wholly-owned CFA which lends that sum to a non-CFA FA
12 May 2000 Internal T.I. 2000-0008247 F - Loan to non-resident person Income Tax Act - Section 17 - Subsection 17(2) potential double taxation under s. 17(2)
9 March 2000 Internal T.I. 2000-0008257 F - Mandat d'inaptitude Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) s. 256(1.4) generally applies to a power of attorney
19 June 2000 External T.I. 2000-0011485 F - Déduction de primes d'assurance-salaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) requirements for employee-contribution and employer-contribution plan to be separate
27 June 2000 External T.I. 2000-0013565 F - DÉDUCTIBILITÉ DES PÉNALITÉS ET DES AMENDES Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose whether penalties such as under the AMPS are deductible is under review in light of 65302 case
4 July 2000 External T.I. 2000-0014725 F - REER - Placement étrangers Income Tax Act - Section 89 - Subsection 89(1) - Canadian corporation overview of Canadian corporation definition
7 July 2000 External T.I. 2000-0015455 F - Allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance the principal shareholder continues as an officer, he is not considered to have retired, even if the corporation's business has been sold
9 February 2000 Internal T.I. 1999-0008067 F - CHANTIER PART.-EUROPE TEMPORAIRE Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) exemption not satisfied where stayed at same European home while moving from worksite to worksite/ only board and lodging allowances covered/ short rental in year ousted that year
16 June 2000 External T.I. 1999-0009945 F - Pertes droits acquis et actionnaire uniq Income Tax Act - Section 112 - Subsection 112(3) grandfathering not lost where a subsidiary acquired by the particular corporation after April 26, 1995, subscribes to a further life-insurance policy
9 June 2000 External T.I. 1999-0010015 F - Interaction entre 55(2) et 186(1) Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(a) deemed dividends arising under failed butterfly transaction gave rise to double taxation and no Part IV tax
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) s. 55(2)(a) application to failed butterfly precluded application of Pt. IV tax
2000-06-23 12 June 2000 External T.I. 2000-0011075 F - AGRICULTURE FARMING Income Tax Act - Section 248 - Subsection 248(1) - Farming market gardening may constitute farming
12 June 2000 External T.I. 2000-0013555 F - construction - asphalte Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (c) application to operation of producing asphalt and using it both in laying it on roads and selling it
23 May 2000 Internal T.I. 2000-0015647 F - DONATIONS D'ACTIONS A UN EMPLOYE-CLE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) gift of shares by sole shareholder to key employee likely would engage s. 6(1)(a) rather than the s. 69 gift rules
10 May 2000 Internal T.I. 2000-0016257 F - RPA COTISATIONS POUR SERVICES ANTERIEURS Income Tax Act - Section 147.2 - Subsection 147.2(4) - Paragraph 147.2(4)(c) no retroactive deduction
7 June 2000 Internal T.I. 2000-0017987 F - TRAVAIL A DOMICILE SUR UNE RESERVE Other Legislation/Constitution - Federal - Indian Act - Section 87 if a status Indian works at home because of being allowed by the employer to do so rather than being obligated to do so, the exemption will not apply
19 May 2000 Internal T.I. 2000-0018477 F - DEDUCTION A LA SOURCE Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(j) amounts paid out of RRSP to trustee in bankruptcy pursuant to judgment were subject to source deductions even though no mention thereof in court order
14 June 2000 Internal T.I. 2000-0018517 F - ASSURANCE POUR MALADIE REDOUTÉE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) likely inapplicability of the exemption for non-illness portion of travel coverage
14 June 2000 Internal T.I. 2000-0021237 F - VALEUR RELATIVE D'UN JUGEMENT General Concepts - Stare Decisis the Agency was not bound to amend a return based on a favourable Informal Procedure judgment rendered to a taxpayer in similar circumstances
Income Tax Act - Section 152 - Subsection 152(1) Agency not bound to accept an amended return based on a favourable informal TCC decision re similar facts
12 June 2000 Income Tax Severed Letter 2000-0024916 F - ACCOMPLIT PRINCIPALEMENT Income Tax Act - Section 8 - Subsection 8(13) - Paragraph 8(13)(a) - Subparagraph 8(13)(a)(i) to satisfy s. 8(13)(a)(i), teleworking employees must physically spend over 50% of their work time in their home office
11 May 2000 External T.I. 1999-0009935 F - Droit recevoir allocations et emigration Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) end-of-career allowance receivable be emigrating physician was includible under s. 128.1(4)(b)
Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) end-of-career allowance received by physician after emigration and retirement was includible under s. 2 to extent of excess over s. 128.1(4)(b) inclusion
Income Tax Act - Section 248 - Subsection 248(1) - Property physician’s entitlement to end-of-career allowance was property
2000-06-09 15 May 2000 Income Tax Severed Letter 2000-0008210 F - ADMINISTRATEUR DE FACTO Income Tax Act - Section 227.1 - Subsection 227.1(1) individual can be a de facto director who acts as such with the shareholders’ agreement or takes significant actions with 3rd parties in the corporation’s name
31 May 2000 External T.I. 2000-0009695 F - FRAIS MEDICAUX-PREPOSE A PLEIN TEMPS Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(b) meaning of “one full-time attendant … for the full-time care of the individual”
5 June 2000 External T.I. 2000-0010615 F - Developpement d'un equipement - RS&DE Income Tax Act - Section 37 - Subsection 37(8) - Paragraph 37(8)(d) expenditures to develop SR&ED equipment could be current expenses
8 June 2000 External T.I. 1999-0006105 F - TRANSFERT DE BIENS A UN CONJOINT Income Tax Act - Section 74.1 - Subsection 74.1(1) CCRA has not yet developed a position re where the transferred property itself is returned to the transferor spouse in repayment of the transferee spouse’s debt

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