Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2017-07-12 6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) legacy of residue (which included the residence) could be satisfied with TFSA of deceased
6 April 2017 External T.I. 2016-0658841E5 F - Purpose tests and Allocation of safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) s. 55(2) did not apply to dividends paid only for asset protection and QSBC-status purposes
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income was allocated between 2 classes of participating shares pro rata to their dividend entitlements
2017-07-05 7 June 2017 External T.I. 2016-0671731E5 F - Transfer of life insurance policy by dividend in kind Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) dividend-in-kind of a life insurance policy avoids the policy’s disposition at FMV
Income Tax Act - Section 52 - Subsection 52(2) proceeds and cost of distributed life insurance policy determined under s. 148(7) rather than s. 52(2)
2017-06-28 30 March 2016 Internal T.I. 2014-0547931I7 F - Voyages offerts par une compagnie Income Tax Act - Section 9 - Nature of Income full value of incentive trips, including business portion, included in income of recipient personal corporations
Income Tax Regulations - Regulation 200 - Subsection 200(1) company providing free trips to incorporated sales reps is required to T4A the individuals if they received the trip qua employee (but not shareholder) of their corporation
9 March 2017 External T.I. 2017-0689241E5 F - Avantages imposables relatifs aux automobiles ou autres véhicules Income Tax Act - Section 248 - Subsection 248(1) - Automobile emergency vehicle's markings must clearly mark it as police or fire vehicle
Income Tax Act - Section 6 - Subsection 6(2) even where a vehicle available 24 hours a day to a fire chief is clearly marked as a firefighter car, the employer must still estimate whether there is a personal-use benefit
15 May 2017 External T.I. 2016-0645891E5 F - Services rendered to a State Treaties - Income Tax Conventions - Article 18 public-sector nurse did not provide services “to Switzerland” for purposes of Art. 18(2)(a) of the Canada-Swiss Treaty
2017-06-21 29 May 2017 External T.I. 2014-0537111E5 F - Consequential assessment Income Tax Act - Section 152 - Subsection 152(4.3) reassessing to increase closing inventory permits a s. 152(4.3) reassessment to change the taxes payable "balance" for the following year
Income Tax Act - Section 10 - Subsection 10(2) reassessing to increase closing inventory permits reassessment to increase next year's COS
9 March 2017 External T.I. 2016-0680071E5 F - Règles transitoires - immobilisations admissibles Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(d) s. 13(38)(d)(iii) election can be available notwithstanding that only a minor pre-2017 ECE was incurred
10 May 2017 External T.I. 2017-0687051E5 F - Addition to ACB of a partnership interest Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) no s. 53(1)(e) addition for s. 34.2(2) stub period income inclusion
Income Tax Act - Section 34.2 - Subsection 34.2(2) no partnership-interest ACB addition for inclusion
11 May 2017 External T.I. 2016-0679751E5 F - TFSA - Exempt Contribution Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) a “survivor payment” can be made out of the deceased’s TFSA even where this occurs in the executor’s discretion
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) legacy made by executor exercising discretion conferred under will occurred because of death
12 May 2017 External T.I. 2016-0649841E5 F - Dividend Refund to Private Corporation Income Tax Act - Section 129 - Subsection 129(1) - Paragraph 129(1)(a) CRA automatically pays available dividend refunds even when not claimed (or wanted)
2017-06-07 21 November 2016 Internal T.I. 2016-0641961I7 F - DSU Plan Income Tax Regulations - Regulation 6801 - Paragraph 6801(d) - Subparagraph 6801(1)(d)(i) potential change-of-control redemption trigger (and Code s. 409A triggers) were offside
Income Tax Act - Section 6 - Subsection 6(11) recognition in income of full value of deferred units issued under offside plan
15 May 2017 External T.I. 2015-0580461E5 F - Life insurance policy held in an RCA trust Income Tax Act - Section 207.5 - Subsection 207.5(3) s. 207.7(2) refund might be generated where an RCA trust distributes a life insurance policy to its employee beneficiary
Income Tax Act - Section 207.5 - Subsection 207.5(1) - RCA Strip holding of life insurance policy could entail RCA strip
2017-05-31 30 March 2017 External T.I. 2015-0609951E5 F - Article 18 of the Canada-Turkey Income Tax Convention Treaties - Income Tax Conventions - Article 18 capital portion of s. 56(1)(d) is not excluded as an annuity under Canada-Turkey Treaty/RRSP annuity payments are pensions
Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 5 - Pension RRSP annuity payments to Turkish resident were subject to Pt XIII tax as pension payments
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(d) capital components are not deduction of cost
2017-05-24 2 May 2017 External T.I. 2016-0663781E5 F - Meaning of retained earnings/calculation of capital Income Tax Act - Section 181 - Subsection 181(3) - Paragraph 181(3)(b) - Subparagraph 181(3)(b)(i) GAAP meant ASPE if ASPE followed by the corporation
Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(a) appraisal increment in acordance with ASPE increased a corporation’s retained earnings
20 April 2017 External T.I. 2016-0672501E5 F - Usufruct and Use of capital of a trust by a spouse Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) right of the bare owner of property, subject to a usufruct in favour of a surviving spouse, to dispose of his bare ownership does not preclude a spousal trust
Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(a) deemed spousal trust created through will
19 April 2017 External T.I. 2016-0625841E5 F - Gift of equitable interest in a trust Income Tax Act - Section 118.1 - Subsection 118.1(5.1) s. 118.1(5.1) does not apply where a GRE donates a capital interest in a charitable residual trust created by will
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(B) (c)(ii)(A) rather than (c)(ii)(B) applies where a GRE charitably donates a capital interest in a charitable residual trust created by will
2017-04-26 14 March 2017 External T.I. 2016-0656101E5 F - Death Benefit Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit sole shareholder who did not receive salary every year could receive a death benefit/staggered payment
2017-04-19 14 March 2017 External T.I. 2016-0627311E5 F - Deduction of contribution to an IPP or RCA Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement a mooted RCA providing supplementary pension benefits must be similar to the IPP which it supplements
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(q) non-deductibility if supplementary benefits do not merely proportionately top-up IPP benefits
13 March 2017 External T.I. 2016-0626641E5 F - Election - Subsection 1101(5b.1) Reg. Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) only one Reg. 1101(5b.1) election is required where work on an addition to a non-residential building extends over more than one year
Income Tax Regulations - Regulation 1102 - Subsection 1102(23) further work on an addition does not fall into a separate class
2017-04-12 3 February 2017 External T.I. 2015-0589821E5 F - Change of Use of duplex Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) substantially renovating the personal-use portion of a rental property (without changing floor areas) generally would not engage the change-of-use rules
24 March 2017 External T.I. 2016-0662381E5 F - Control - unanimous shareholders agreement Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) highly contingent secondary call right of a non-resident on shares of minority residents undercuts for CCPC purposes their USA right to appoint half the board
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(ii) no application if non-resident under USA cannot control board decision to redeem residents’ shares – applies if automatic redemption requirement
Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation non-resident would control notwithstanding USA board appointment right of residents due to its secondary call right on their shares or right to require corp to honour automatic redemption clause

Pages