Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-06-09 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
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

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