Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-05-12 26 April 2000 Income Tax Severed Letter 2000-0017386 F - DOMMAGES-ENTENTE HORS COUR Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance non-taxable damages for harassment
28 April 2000 External T.I. 2000-0020695 F - CREDIT-BAIL Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A Construction Bérou not followed after 1990 – taxpayers generally should follow the legal form of the agreement
General Concepts - Substance CRA generally assumes that the form of the agreement reflects the relationship
2000-04-28 13 April 2000 Internal T.I. 2000-0005737 F - IMPOSITION DES RISTOURNES Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage insufficient information to determine whether allocations in proportion to patronage, or volume rebates
Income Tax Act - Section 9 - Timing year end rebate amounts, if not allocations in proportion to patronage, were not includible at that time in s. 9 income as the conditions precedent for their payment had not yet been met
13 April 2000 External T.I. 2000-0006635 F - CONJOINT DE FAIT DE MEME SEXE Income Tax Act - Section 146.01 - Subsection 146.01(1) - HBP Balance new common-law partner provisions did not extend to HBPs
7 April 2000 External T.I. 2000-0016275 F - Spin-off to individual shareholders Income Tax Act - Section 90 - Subsection 90(1) treatment of foreign spin-off as s. 90(1) dividend
19 April 2000 External T.I. 1999-0010095 F - Income earned or realized - capital loss Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income of public corporation reduced by full amount of capital loss
14 April 2000 External T.I. 1999-0013795 F - RESIDENCE PRINCIPALE Income Tax Act - Section 40 - Subsection 40(4) - Paragraph 40(4)(a) transferee spouse could designate the cottage as her principal residence
10 February 2000 Internal T.I. 1999-0014267 F - PRESCRIPTION Income Tax Act - Section 152 - Subsection 152(4.01) - Paragraph 152(4.01)(a) - Subparagraph 152(4.01)((a)(i) misrepresentation re underreported income could not be used as basis for reassessing expenses for which there had been no misrepresentation of fact
13 April 2000 External T.I. 1999-0014465 F - UTILISATION DE PRODUITS D'ASSURANCE-VIE Income Tax Act - Section 74.1 - Subsection 74.1(1) insurance policy generates property income, so that s. 74.1 attribution rules could apply
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (d) addition of disability option clause to an insurance policy results in its disposition by operation of law if under the CCQ such change “results in the creation of a new contract”
2000-04-14 29 March 2000 Internal T.I. 2000-0001367 F - PAIEMENT POUR SE LIBERER D'UNE HYPOTHEQUE Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) sum paid on the disposition of a property to be released from the contingent liability on the mortgage that was assumed by the purchaser, was non-deductible
Income Tax Act - Section 18 - Subsection 18(9.1) s. 18(9.1) did not apply to payment to be released from contingent payment obligation on assumed mortgage
29 March 2000 External T.I. 2000-0004315 F - Revenu gagné dans une province Income Tax Regulations - Regulation 402 - Subsection 402(5) exclusion did not extend to certificates of deposit/ exclusion applied to rents from US rental property since it did not appear to be part of the corporation’s investing activity
29 March 2000 Internal T.I. 2000-0006267 F - INSTIT. FINANCIERE VERITABLE CONTROLE Income Tax Act - Section 248 - Subsection 248(1) - Restricted Financial Institution - Paragraph (f) control included ultimate control
28 March 2000 External T.I. 2000-0007445 F - Fusion et paragraphe 13(5.1) Income Tax Act - Section 13 - Subsection 13(5.1) continuity of s. 13(5.1) on amalgamation
6 April 2000 External T.I. 2000-0009515 F - Choix 1103(1) et Immeubles locatifs Income Tax Regulations - Regulation 1103 - Subsection 1103(1) corporation holding and managing rental properties is carrying on a business
29 March 2000 Internal T.I. 2000-0011467 F - DATE D'EXECUTION-PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(ii) court ratification of support agreement did not trigger a commencement day
5 April 2000 External T.I. 1999-0004235 F - PERTE AU TITRE D'UN PLACEMENT D'ENTREPRISE Income Tax Act - Section 39 - Subsection 39(12) s. 39(12) applied to debts acquired by subrogation by paying guaranteed debts seriatim on due dates provided that the guaranteed corp met the SBC test on the first such guarantee payment
31 March 2000 External T.I. 1999-0008715 F - PROPOSE DE LA LOI - XXXXXXXXXX Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(C) split income to minor child beneficiary of trust partner in partnership providing admin services to father’s professional partnership
17 January 2000 External T.I. 9911385 F - XXXXXXXXXX Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a) - Subparagraph 118.5(1)(a)(i) fees paid to a professional organization to take courses in preparation for a certification exam may be eligible
17 January 2000 External T.I. 9914425 F - EXAMEN D'AGREMENT Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a) fee for a professional certification exam can be considered a tuition fee where the exam is an integral part of the course of study
18 January 2000 Income Tax Severed Letter 9932456 F - MOT PAYABLE BIEN MEUBLE LÉGUÉ UNIVERSEL Income Tax Act - Section 104 - Subsection 104(24) income of Quebec estate was not payable to the residuary beneficiary unless it was generated after estate admin was completed
Income Tax Act - Section 152 - Subsection 152(4.2) CCRA could reassess estate statute-barred years to allow deduction under ss. 104(6) and (24) for income that became payable after estate administration was complete
2000-03-31 24 March 2000 External T.I. 2000-0002775 F - Revenu gagné dans une province Income Tax Regulations - Regulation 402 - Subsection 402(5) interest on non-listed investments not excluded
Income Tax Regulations - Regulation 402 - Subsection 402(3) gross revenue excludes capital gains and, where from investments, is allocated based on where the investment decisions are made
23 March 2000 Internal T.I. 2000-0003277 F - INTERNE ET REP Income Tax Act - Section 146.02 - Subsection 146.02(1) - Eligible Amount - Paragraph (f) qualification of a medical intern
Income Tax Act - Section 146.02 - Subsection 146.02(1) - Repayment Period repayment period for the medical intern began at the start of the third calendar year of his participation period
15 February 2000 Internal T.I. 2000-0004537 F - UNDP ORGANISATION INT'LE VISEE x REGL Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(iii) UNDP and UNOPS were subsidiary admin bodies of the UN/ the taxpayer's income was not exempted because she was an independent contractor
20 March 2000 External T.I. 1999-0005815 F - BIEN DE REMPLACEMENT-DATE DE DISPOSITION Income Tax Act - Section 44 - Subsection 44(2) - Paragraph 44(2)(a) disposition for component of destruction where final compensation determined for that component
Income Tax Act - Section 44 - Subsection 44(5) leasehold interest can be a replacement property to building
14 March 2000 External T.I. 1999-0007475 F - REMISE DE DETTE Income Tax Act - Section 20.1 - Subsection 20.1(1) pro rata application of s. 20.1(1)(b) where shares acquired with two loans are wholly applied to settle the first loan
7 March 2000 Internal T.I. 1999-0007497 F - AIDE A DOMICILE-PRESTATION DE L'ART SAAQ Income Tax Act - Section 3 - Paragraph 3(a) insurance-funded assistance to the mother of a severely injured child for her care services was business income to her net of her care expenses (e.g., daycare)
18 February 2000 Internal T.I. 1999-0008457 F - Life Insurance Corporation Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (a) a public corporation for purposes of the CCPC definition includes a corporation deemed to be a public corporation under s. 141
Income Tax Act - Section 256 - Subsection 256(9) status of the subject corporation as controlled by a public corporation was determined immediately before the deemed s. 256(9) acquisition time
22 March 2000 External T.I. 1999-0013995 F - ECHANGE D'ACTIONS Income Tax Act - Section 7 - Subsection 7(1.5) s. 7(1.5) exchange of securities is subject to capital gains treatment
Income Tax Act - Section 7 - Subsection 7(1.3) where only some of the securities exchanged are subject to s. 7, subsequent dispositions out of each pool are pro rata
2000-03-17 3 March 2000 Internal T.I. 2000-0002337 F - COOPERATIVES Income Tax Act - Section 137 - Subsection 137(6) - Credit Union Quebec cooperative did not qualify as a credit union in light of not being incorporated under the Credit Unions Act and not having statutory authorization to conduct business as a credit union
Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business Quebec cooperative did not qualify for the exclusion from SIB for a credit union

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