Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2018-04-11 6 October 2017 APFF Roundtable Q. 11, 2017-0709091C6 F - Transitional rules - Class 14.1 Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(d) - Subparagraph 13(38)(d)(iii) s. 13(38)(d)(iii) transitional election is irrelevant to ECP dispositions by a calendar-year partnership
6 October 2017 APFF Roundtable Q. 12, 2017-0709111C6 F - Dépenses relatives à un congrès Income Tax Act - Section 20 - Subsection 20(10) non-capital convention expenses incurred as business expense may be deducted without refererence to s. 20(10) - but “historically” convention expenses viewed as capital expenditures
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training convention expenses "historically" viewed as capital expenditures
6 October 2017 APFF Roundtable Q. 13, 2017-0709061C6 F - Calcul des frais pour droit d'usage Income Tax Act - Section 6 - Subsection 6(2) s. 6(2) standby charge based on leasing cost to the employer rather than the automobile’s cost to an affiliated purchaser
6 October 2017 APFF Roundtable Q. 14, 2017-0720321C6 F - GAAR & 21-year rule planning Income Tax Act - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) Act does not contemplate any deferral beyond 21 years while property is directly in a discretionary trust or through a Canco
6 October 2017 APFF Roundtable Q. 15, 2017-0709141C6 F - Designation pursuant to paragraph 111(4)(e) Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) appreciated goodwill is now eligible for the s. 111(4)(e) step-up
6 October 2017 APFF Roundtable Q. 16, 2017-0709161C6 F - Résidence principale sur une terre agricole Income Tax Act - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership - Paragraph (a) - Subparagraph (a)(i) a legally non-severable farm that is used both in farming and as a residence is one property for purposes of the s. 110.6 principal-use tests
Income Tax Act - Section 248 - Subsection 248(1) - Property non-severable farm is a single indivisible property
6 October 2017 APFF Roundtable Q. 17, 2017-0709171C6 F - Arm's length determination Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) "holder-by-holder" method applied to treat contingent s. 251(5)(b) rights as being exercised re all the other shareholders
6 October 2017 APFF Roundtable Q. 18, 2017-0721691C6 F - APFF 2017 - Question 18 Income Tax Act - Section 152 - Subsection 152(1) DTS update
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 1, 2017-0705221C6 F - Property transfers - common law partners in Québec Income Tax Act - Section 146 - Subsection 146(16) - Paragraph 146(16)(b) a common-law partners’ separation agreement can engage s. 146(16)(b) or 146.3(14) rollover even if technically they have no legal rights to settle
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) rollover under common-law partners' separation agreement irrespective of whether technically they have separation rights to settle
Income Tax Act - Section 146.3 - Subsection 146.3(14) rollover pursuant to common-law partners' settlement agreement
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 2, 2017-0710681C6 F - Withdrawal of RRSP over-contributions after death Income Tax Act - Section 146 - Subsection 146(8.8) income inclusion under s. 146(8.8) on death irrespective whether premiums exceeded deductible amount
Income Tax Act - Section 146 - Subsection 146(8.2) deemed s. 146(8.8) benefit on death treated as RRSP withdrawal, and executor should not use Form T746
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 4, 2017-0707781C6 F - Withdrawal of undeducted RRSP contributions Income Tax Act - Section 146 - Subsection 146(8.2) s. 146(8.2) deduction for withdrawing excess contributions can be available even where Pt X.1 tax is not applicable
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 5, 2017-0707801C6 F - RRIF transfers – partition of family patrimony Income Tax Act - Section 146.3 - Subsection 146.3(14) amount paid to surviving spouse's RRIF did not qualify under s. 146.3(14)
Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit payment from a deceased’s RRIF to the RRIF of the surviving spouse who was excluded under the will qualified as designated benefit
Income Tax Act - Section 60 - Paragraph 60(l) transfer from deceased's RRIF to RRIF of surviving spouse in settlement of claim
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 6, 2017-0707791C6 F - RRIF - Successive Deaths Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit death of the surviving spouse before she received payment of the testator’s legacy of his RRIF precluded access to the designated benefit rules
Income Tax Act - Section 146.3 - Subsection 146.3(6.1) s. 146.3(6.1) did not apply as the executor did not receive the RRIF legacy
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 8, 2017-0712621C6 F - Dépôt en monnaie étrangère-Immobilisation Income Tax Act - Section 39 - Subsection 39(1.1) non-application to FX deposits
Income Tax Act - Section 70 - Subsection 70(5) FX deposit treated as debt rather than s. 39(1.1) currency
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 9, 2017-0705231C6 F - Gift of a Life Insurance Policy and Subrogated Own Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) gain by estate on gift of policy based on cash surrender value
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(i) - Clause (c)(i)(C) claim in terminal return for charitable gift made by estate under individual’s will
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(i) - Clause (c)(i)(A) no guidance on whether designating a charity as a contingent policyholder generates a charitable credit
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 10, 2017-0705201C6 F - Capital loss - repayment of loan Income Tax Act - Section 40 - Subsection 40(3.3) the foreign currency deemed to be disposed of under s. 39(2) by an FX borrower on repaying a USD loan is not identical property to the USDs received by it under a replacement loan
Income Tax Act - Section 248 - Subsection 248(1) - Property foreign currency is not property for purposes of the suspended-loss rules
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 14, 2017-0708511C6 F - T1135 and 162(7) penalty Income Tax Act - Section 162 - Subsection 162(7) penalty for late-filing of a T1135 will be imposed automatically
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) failure to file a T1135 treated as a misrepresentation – but neglect etc. ground to be determined
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 16, 2017-0705181C6 F - Hedging & George Weston Limited Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges CRA is considering changing its policy re what is capital hedge
2018-04-04 20 February 2018 External T.I. 2017-0727811E5 F - Synthetic disposition Income Tax Act - Section 248 - Subsection 248(1) - Synthetic disposition arrangement an arrangement which eliminates all risk of loss nonetheless “appears” not to be a synthetic disposition arrangement if there is 20% profits participation
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share disposition could be deferred to end of 24 month period if deferred-closing agreement was not a synthetic disposition agreement
2018-03-14 18 December 2017 External T.I. 2017-0714971E5 F - Application of subsection 55(2) Income Tax Act - Section 55 - Subsection 55(2) relationship between Part IV tax and s. 55(2) and related amended return filings
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) s. 55(2) application does not reduce s. 186(1)(b) initially reported Pt IV tax
2018-02-07 12 July 2017 Ministerial Correspondence 2017-0695331M4 F - Publicité sur des plateformes Web étrangères Income Tax Act - Section 19.01 - Subsection 19.01(2) ss. 19, 19.01 and 19.1 do not limit deductibility of ads on foreign websites
13 July 2017 Ministerial Correspondence 2017-0697311M4 F - Publicité sur des plateformes Web étrangères Income Tax Act - Section 19 - Subsection 19(1) ss. 19, 19.01 and 19.1 do not apply to advertising on foreign websites
2018-01-17 18 December 2017 External T.I. 2017-0720731E5 F - Eligible dividend designation Income Tax Act - Section 89 - Subsection 89(14) designations can be made before the dividend payment time and by email
2018-01-10 6 December 2017 External T.I. 2016-0667361E5 F - Taxable Capital Gains Designation Income Tax Act - Section 104 - Subsection 104(21.2) eligibility of a gain for the capital gains deduction is lost when it is distributed by a lower-tier to upper-tier trust
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Annual Gains Limit annual gains limit of upper-tier trust does not include QSBC gains distributed and designated by lower-tier trust

Pages