Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-12-14 6 February 2015 Internal T.I. 2015-0566681I7 F - Redevances perçues d'avance Income Tax Act - Section 9 - Timing lump sum irrevocable prepayment of contingent future royalties fully included
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) irrevocable royalty prepayment under s. 12(1)(a) or 9
2016-12-07 18 October 2016 External T.I. 2015-0608051E5 F - Emigration of a trust Income Tax Act - Section 220 - Subsection 220(4.5) emigrating trust can elect to defer payment of the exit tax
Income Tax Act - Section 2 - Subsection 2(1) Fundy Settlement test may differ from residence of trustees
2016-11-30 7 October 2016 APFF Roundtable Q. 1A, 2016-0652951C6 F - Penalty late filed election-subsection 85(8) Income Tax Act - Section 85 - Subsection 85(8) penalty calculated on a global basis
7 October 2016 APFF Roundtable Q. 1B, 2016-0652761C6 F - T4A filing Income Tax Regulations - Regulation 200 - Subsection 200(1) no expanded relief from the broad T4A reporting requirements
Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(g) limited exceptions to T4A reporting
7 October 2016 APFF Roundtable Q. 1C, 2016-0652771C6 F - T106 and multiple year ends Income Tax Act - Section 231.1 - Subsection 233.1(2) acquisition of control generally will not generate additional T106 filings
7 October 2016 APFF Roundtable Q. 2, 2016-0652841C6 F - Changement partiel d’usage - immeuble locatif et résidentiel Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) switch between which triplex units used for personal/ family rental or 3rd-party rental did not trigger change of use
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) on sale of triplex, individual can claim exemption only for years in which particular units were used personally or by children
Income Tax Act - Section 54 - Principal Residence triplex contained separate housing units
7 October 2016 APFF Roundtable Q. 3, 2016-0652851C6 F - Annulation d'une promesse d'achat sur une maison Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) damages for breach of covenant to purchase principal residence not covered
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) no capital loss for damages paid for breach of purchase obligation
7 October 2016 APFF Roundtable Q. 4, 2016-0652801C6 F - Salary Deferral Arrangement Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement - Paragraph (k) no backdating as of the year end
7 October 2016 APFF Roundtable Q. 5, 2016-0652861C6 F - Véhicules électriques - rabais Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) use of manufacturer’s electricity-use standard
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A installation cost included
Income Tax Act - Section 6 - Subsection 6(2) Quebec government assistance does not reduce cost of purchased vehicle, but treated as compensation to dealer-lessor prorated over term of lease
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) vehicle assistance paid indirectly (to dealer) covered
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A cost not reduced under general principles by government assistance
7 October 2016 APFF Roundtable Q. 6, 2016-0652821C6 F - Graduated Rate Estate - Total Charitable Gifts
7 October 2016 APFF Roundtable Q. 7, 2016-0652971C6 F - Paragraph 251(5)(b) and subsection 256(1.4) Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) does not include right to find a 3rd party purchaser for another’s shares
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(ii) may include right arising after triggering of event over which no control
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) right to find 3rd party purchaser
7 October 2016 APFF Roundtable Q. 9, 2016-0652921C6 F - Résidence - actif utilisé / Residence - asset used Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share farm house must be more than 50% used by farm employees to qualify
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation primary employee use qualifies farm house
7 October 2016 APFF Roundtable Q. 10, 2016-0652931C6 F - Bien agricole admissible-saisine par succession Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) - Subparagraph 110.6(1.3)(a)(i) 3 owners if farm passes from father to estate to son
General Concepts - Ownership estate owns its property
7 October 2016 APFF Roundtable Q. 11, 2016-0652941C6 F - Contrat de location / Capital lease Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation FMV of rights under a lease must be included
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share stipulated rights of lessee should be valued for QSBCS purposes
7 October 2016 APFF Roundtable Q. 12, 2016-0655911C6 F - Partial Leveraged Buy-Out and Monetization of ACB Income Tax Act - Section 84 - Subsection 84(2) amalgamation does not cause reorg etc. of business
7 October 2016 APFF Roundtable Q. 13, 2016-0652981C6 F - Allocation of the safe income on hand Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) business income earned by a corporation following a subscription for a separate class of discretionary dividend shares could be allocated to those shares
7 October 2016 APFF Roundtable Q. 14, 2016-0655921C6 F - Safe income on hand - Preferred shares Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) fixed dividends on full-ACB prefs did not come out of SIOH
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) whether dividends paid on non-participating prefs engage s. 55(2) is a question of fact
7 October 2016 APFF Roundtable Q. 15, 2016-0652991C6 F - Application of subsection 55(2) - holding period Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) stock dividend of nominal value discretionary shares to shift value to an affiliate
7 October 2016 APFF Roundtable Q. 16, 2016-0653001C6 F - Safe income and freeze preferred shares Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) application of safe income on hand to dividends paid on estate freeze prefs
7 October 2016 APFF Roundtable Q. 17, 2016-0652781C6 F - Functional currency and acquisition of control Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) FX gains or losses on pre-transition debts not affected
Income Tax Act - Section 261 - Subsection 261(9) - Paragraph 261(9)(a) exclusion of pre-transition debts from s. 111(4)
Income Tax Act - Section 40 - Subsection 40(10) exclusion of pre-transition debts
7 October 2016 APFF Roundtable Q. 18, 2016-0652791C6 F - Taxable Canadian property and Part XIII tax Income Tax Act - Section 119 property must have been TCP continuously from the time of emigration
7 October 2016 APFF Roundtable Q. 19, 2016-0655841C6 F - Reimbursement of attributed income Income Tax Act - 101-110 - Section 103 - Subsection 103(1) no obligation to repay income reallocated to other partner

Pages