Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-07-07 9 June 2000 External T.I. 1999-0010015 F - Interaction entre 55(2) et 186(1) 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 11 May 2000 External T.I. 2000-0009605 F - Démolition d'un immeuble Income Tax Regulations - Regulation 1100 - Subsection 1100(11) Reg.1100(11) does not limit a terminal loss
Income Tax Act - Section 20 - Subsection 20(16) rental property restriction rule does not apply to a terminal loss
Income Tax Act - Section 13 - Subsection 13(21.2) s. 13(21.2) does not apply to an individual nor to a corporation demolishing a building while retaining the land for more than 30 days
Income Tax Act - Section 54 - Superficial Loss no superficial loss where demolition of building
Income Tax Act - Section 40 - Subsection 40(3.3) no suspended loss where demolition of building
15 May 2000 External T.I. 2000-0001995 F - CONGE SANS SOLDE-REGIME DISTINCT Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) payment of premiums by employee during unpaid leave did not create a separate plan, so that any benefits received would still be taxable
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
11 May 2000 Internal T.I. 2000-0008270 F - Perte finale disposition bâtiment Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) s. 13(21.1)(b) would apply to reduce terminal loss even if the land was disposed of at a loss in a previous year
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
24 May 2000 Internal T.I. 2000-0017677 F - PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount payments made pursuant to a separation agreement in order to maintain a financial balance between them rather than for maintenance, were not support amounts
11 May 2000 Internal T.I. 2000-0019097 F - RAP RETRAIT EN JANVIER ANNEE SUIVANTE Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(d) additional withdrawal request no longer is required to be made before the end of the taxation year preceding the year of the additional withdrawal
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
17 May 2000 External T.I. 1999-0011695 F - Revenu protégé - options et dividendes Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income of Pubco allocated to option granted to a minority shareholder to acquire its shares, but reduced by Pubco dividends
17 March 2000 APFF Roundtable Q. 11, 2000-0008260 F - DEDUCTION POUR PLACEMENTS Income Tax Act - Section 181.2 - Subsection 181.2(4) - Paragraph 181.2(4)(b) balance of sale, although a debt, is not a “loan or advance”/ prepaid expenses are “advances”
2000-05-26 24 May 2000 External T.I. 2000-0012785 F - INCENDIE MAJEUR CONSEQUENCES Income Tax Act - Section 248 - Subsection 248(1) - Disposition disposition for nil proceeds on property’s destruction without compensation
12 May 2000 External T.I. 1999-0004715 F - PRET A UN EMPLOYE Income Tax Act - Section 6 - Subsection 6(15) no inclusion of principal of loan from employer in employee’s income prior to any forgiveness (including by way of set-off), if the loan is a bona fide loan
12 May 2000 External T.I. 1999-0008685 F - QUOTA DE LAIT Income Tax Act - Section 110.6 - Subsection 110.6(2) CGD could be claimed on portion of milk quota eligible as qualified farm property, with s. 85(2) election made to avoid other gain
Income Tax Act - Section 85 - Subsection 85(1) can treat fungible transferred property as consisting of two portions, one eligible for the CGD, so that separate agreed amounts made
2000-05-12 19 April 2000 Internal T.I. 2000-0005387 F - DEFINITION DE VEHICULE A MOTEUR Income Tax Act - Section 248 - Subsection 248(1) - Motor Vehicle a snowmobile is not a motor vehicle as it is not constructed specifically for road use
1 May 2000 External T.I. 2000-0008615 F - Fiducie de protection d'actifs Income Tax Act - Section 108 - Subsection 108(1) - Trust - Paragraph (g) all interests in an asset-protection trust were vested indefeasibly
5 May 2000 External T.I. 2000-0008825 F - FRAIS DE GARDE ECOLE SECONDAIRE Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense costs of meals and of supervised activities, such as extracurricular activities, are not part of child care expenses
5 April 2000 Internal T.I. 2000-0009467 F - EQUIV. DU MONTANT POUR CONJOINT Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) taxpayer could not claim the s. 118(1)(b) credit for a child in the year of separation for whom he did not have custody
12 April 2000 Income Tax Severed Letter 2000-0010106 F - POMPIERS VOLONTAIRES Income Tax Act - Section 81 - Subsection 81(4) - Paragraph 81(4)(a) meaning of “volunteer” fire fighter
26 April 2000 Internal T.I. 2000-0011307 F - Disposition - Avoir minier canadien Income Tax Act - Section 66.4 - Subsection 66.4(2) vendor can continue to take s. 66.4(2) deduction for positive CCOGPE balance if successor corporation rules jointly accessed
17 April 2000 Internal T.I. 2000-0013537 F - FRAIS JURIDIQUES-REDUCTION PENSION ALIM. Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees incurred in unsuccessful attempt to maintain child support were deductible

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