Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2024-06-12 2024 Ruling 2023-0989121R3 F - Internal reorganization - 55(3)(a) and 55(3.01)(g) Income Tax Act - Section 248 - Subsection 248(10) estate freeze transactions represented to be independent of subsequent transfer
Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3.01)(g) applied to the transfer (fresh after an estate freeze) by unrelated shareholders of Opco to a new Holdco, with an Opco realty spin-off to a new Realtyco sister
16 April 2024 Internal T.I. 2023-0998991I7 F - Qualification fiscale de certaines sommes Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) amount per week of training in short-term program leading to a skills training certificate was a bursary/ amount paid upon graduation was a bursary or a prize
2024-06-05 4 April 2024 External T.I. 2023-0996201E5 - Employment income to sole shareholder Other Legislation/Constitution - Federal - Indian Act - Section 87 the salary of a status Indian from his corporation may be exempted based on the relative sourcing of its income on and off reserve
2024-05-29 14 March 2024 External T.I. 2015-0596761E5 F - Traitement fiscal Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense expenditure on anti-theft marking of car likely would be on current account
Income Tax Act - Section 18 - Subsection 18(9) practice is not to apply s. 18(9) where the adjustments would be minimal
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) - A - Subparagraph A(iv) mandatory requirement for employee notification to employer by end of year
2024-04-24 7 October 2021 Roundtable, 2021-0908201C6 F - Vente d'un bien détenu en copropriété par indivisi Income Tax Act - Section 74.2 - Subsection 74.2(1) imputation of an inter-spousal gift or loan on spouses’ property purchase (based on how the sales proceeds were agreed to be shared) engaged s. 74.2(1)
2024-04-03 26 February 2024 External T.I. 2019-0813441E5 F - Frais de scolarité pour un cours par correspondance Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a) shipping and handling charges for correspondence-course books included in tuition
23 February 2024 External T.I. 2020-0852621E5 F - Pompier volontaire Income Tax Act - Section 118.06 - Subsection 118.06(1) CRA position on “volunteer firefighter” remained in force following Bourgeois
2024-03-20 18 February 2021 Internal T.I. 2014-0554901I7 F - Bourses d’études Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) treatment of assistance received from the Ministry for the Master's program in advanced pharmacotherapy
2024-03-13 21 December 2023 External T.I. 2019-0822121E5 F - Transfer of life insurance policy from a trust to its corporate beneficiary
2024-02-14 26 June 2020 External T.I. 2017-0688121E5 F - Déductibilité des intérêts et pénalités imposées sur les taxes foncières Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose interest on municipal taxes incurred as a business expense is deductible
Income Tax Act - Section 67.6 tardiness “penalty” added by municipality to unpaid property taxes came within s. 67.6
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures interest paid on property taxes incurred as a business expense is itself deductible
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 - Section 107 - Subsection 107(2) s. 107(2) inapplicable to distribution in satisfaction of a trust debt owing to the beneficiary
Income Tax Act - 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 - 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 - 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 - 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)

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