Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
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
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

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