Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2024-02-14 29 November 2023 External T.I. 2019-0812661E5 F - Allocation pour usage d’un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) a carpooling arrangement is inherently unreasonable under s. 6(1)(b)(x)
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 1, 2023-0976911C6 F - CELIAPP - Changement d'usage / FHSA - Change in use Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (d) a recent change of a home from rental to principal-residence use cannot ground an FHSA withdrawal
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 3, 2023-0976921C6 F - CELIAPP - Acquisition d'une quote-part d'une habitation admissible / FHSA - Acquisition of a share of a qualifying home Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal a qualifying withdrawal from an FHSA can fund the purchase of a co-ownership interest in a qualifying home
General Concepts - Ownership reference to acquiring a qualifying home includes acquiring a co-ownership interest
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 4, 2023-0990531C6 F - Life insurance policy transfer Income Tax Act - Section 148 - Subsection 148(7) a trust distribution of a life insurance policy to a beneficiary was made for FMV consideration equal to the part of the beneficiary’s capital or income interest that is satisfied
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) s. 107(2) inapplicable to distribution in satisfaction of a trust debt owing to the beneficiary
Income Tax Act - 101-110 - Section 106 - Subsection 106(3) s. 106(3) could apply to a distribution of a dividend in kind
2 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 5, 2023-0978561C6 F - Partnership – distribution of a life insurance police Income Tax Act - Section 148 - Subsection 148(7) s. 98(2) generally prevails over s. 148(7)
Income Tax Act - Section 248 - Subsection 248(35) holding of policy by partnership prior to its distribution to partner does not count towards the latter’s holding period
Income Tax Act - Section 98 - Subsection 98(2) disposition of distributed life insurance policy at FMV pursuant to s. 98(2), rather than s. 148(7) applying
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 6, 2023-0994241C6 F - Consequences of Transfer of DSUs to a corporation Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement transfer of DSU to corporation would cause it to cease to qualify, perhaps retroactively
Income Tax Act - Section 85 - Subsection 85(1.1) DSU rights are not eligible property and not capital property
Income Tax Act - Section 54 - Capital Property deferred share units were not capital property
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 7, 2023-0994231C6 F - Additional reporting - trusts subject to exception Income Tax Regulations - Regulation 204.2 - Subsection 204.2(1) trusts not coming within the preamble to ITA s. 150(1.2) must still provide the additional Reg. 204.2(1) information if not excepted under ss. 150(1.2)(a) to (o)
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 8, 2023-0976901C6 F - RPP survivor benefit flowing through a GRE Income Tax Act - 101-110 - Section 104 - Subsection 104(27) full flow-through of a pension benefit received by the estate to the surviving spouse for s. 60(j) purposes by the estate issuing her a note
Income Tax Act - 101-110 - Section 104 - Subsection 104(24) income can be distributed to estate beneficiary by issuing a demand note to her
Income Tax Act - Section 60 - Paragraph 60(j) flow-through of pension benefit by estate to surviving spouse through cash and note issuance/ no FHSA deduction for s. 104(27) amount
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 9, 2023-0976941C6 - Withholding on registered plans Treaties - Income Tax Conventions - Article 22 reduced 15% withholding rate under Art. 22 of the Canada-U.S. Convention applies to TFSA and RDSP trusts
Treaties - Income Tax Conventions - Article 18 RRSP/ RRIF payments are “pensions” under Art. XVIII rather than “other income” under Art. XXII of the US Convention, but must be "periodic pension payments" for 15% rate to apply
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 10, 2023-0978651C6 - Exchange rate for a stripped interest coupon Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) deemed interest on an FX-denominated stripped coupon should be translated on a daily basis
2024-02-07 2 November 2023 APFF Roundtable Q. 1, 2023-0975421C6 F - Paragraph 25 of IT-293R (Archived) Income Tax Act - Section 9 - Forgiveness of Debt reversal of CRA position that forgiveness of an old trade debt generally will be on capital account
2 November 2023 APFF Roundtable Q. 2, 2023-0982751C6 - Meaning of purpose tests in paragraph 55(2.1) Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) the payment of a pre-closing dividend of significant excluded assets by the target to its parent likely would engage s. 55(2) where no safe income
2 November 2023 APFF Roundtable Q. 3, 2023-0984441C6 F - Qualified small business corporation share - meaning of "all or substantially all" and "asset" Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (d) a momentary right to discharge a dividend payable constitutes a non-active business asset for QSBCS purposes/ no rigid equating of "substantially all" with 90%
2 November 2023 APFF Roundtable Q. 4, 2023-0982781C6 F - Section 51 Share Exchange Income Tax Act - Section 51 - Subsection 51(1) s. 51(1) is inapplicable to an exchange for identical shares
2 November 2023 APFF Roundtable Q. 5, 2023-0982821C6 F - Notion d’ « entreprise principale » aux fins du paragraphe 1100(12) R.I.R. Income Tax Regulations - Regulation 1100 - Subsection 1100(12) criteria in IT-206R for distinguishing separate businesses, and in IT-371 for distinguishing a principal business, are applicable under Reg. 1100(12)
2 November 2023 APFF Roundtable Q. 6, 2023-0982831C6 - Paragraph 12(1)(x) Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance CAE followed
2 November 2023 APFF Roundtable Q. 7, 2022-0942171C6 F - Indemnité payée pour libérer temporairement un logement locatif Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense compensating a tenant for temporary displacement from a rental property being improved and repaired by the landlord may be a current deduction
2 November 2023 APFF Roundtable Q. 8, 2023-0982881C6 - Revision of Capital Cost Allowance Claims Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims CRA will continue on a discretionary basis to accept revisions to prior years’ CCA claims for nil-income years
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E CRA will exercise its discretion in IC84-1 having regard to avoiding inappropriate tax results
2 November 2023 APFF Roundtable Q. 9, 2023-0982911C6 - APFF - Congrès 2023 - Table ronde sur la fiscalité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss - Damages bitcoin loss from fraud might be capital loss, and timing of a loss could be governed by s. 44(2)
Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (b) damages for loss of bitcoin from fraud would be compensation for property unlawfully taken
Income Tax Act - Section 54 - Personal-Use Property bitcoin to be used for online purchases is not personal-use property
2 November 2023 APFF Roundtable Q. 10, 2023-0993641C6 - APFF - Congrès 2023 Q.10 disposition de cryptomonnaie Income Tax Act - Section 248 - Subsection 248(1) - Disposition there likely was a disposition of bitcoin on its transfer to a bitcoin platform
General Concepts - Ownership bitcoin platform likely acquired ownership of bitcoin deposited with it
2 November 2023 APFF Roundtable Q. 11, 2023-0983621C6 F - Paragraph 12(1)(x) and Non-Refundable Tax Credit Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(k) Quebec synergy tax credit is received on the due date for the related return, or when a carryforward or carryback request is made for it
2 November 2023 APFF Roundtable Q. 12, 2023-0982931C6 F - APFF - Congrès 2023 - Table ronde sur la fiscalité General Concepts - Evidence documentation of a loss from the collapse of a crypto exchange
2 November 2023 APFF Roundtable Q. 13, 2023-0982941C6 F - APFF - Congrès 2023 - Table ronde sur la fiscalité Other Legislation/Constitution - Federal - Bankruptcy and Insolvency Act - Section 69 - Subsection 69(4) where a contested notice of assessment is subject to a stay, it generally must apply to the bankruptcy court for lifting the stay
Income Tax Act - Section 152 - Subsection 152(8) stay of proceedings under the BIA is a procedural limitation that does not affect an assessment’s validity
2 November 2023 APFF Roundtable Q. 14, 2023-0982951C6 F - Article 56.4 L.I.R. - Clauses restrictives Income Tax Act - Section 56.4 - Subsection 56.4(7) - Paragraph 56.4(7)(g) CRA will entertain applications for late s. 56.4(7)(g) (letter) elections
2 November 2023 APFF Roundtable Q. 15, 2023-0982901C6 - Impact of the Collins Family Trust decision Income Tax Act - Section 152 - Subsection 152(1) CRA lacks discretion to not apply the provisions of the ITA as judicially interpreted

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