Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-09-07 24 June 2016 Internal T.I. 2014-0555611I7 F - Allocation raisonnable Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) kilometer-based minimum allowance must be intended to compensate for actual expenses
2016-08-10 11 July 2016 External T.I. 2015-0592681E5 F - RRIF Death of an annuitant Income Tax Act - Section 146.3 - Subsection 146.3(1) - Annuitant surviving spouse who has been predesignated can qualify as an RRIF annuitant even if he or she does not receive any annuity payments
Income Tax Act - Section 146.3 - Subsection 146.3(6.2) deduction for transfer to eligible recipient by surviving spouse
Income Tax Act - Section 60 - Paragraph 60(l) transfer by eligible recipient of payment out of RRIF
Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums consequence of death if named as beneficiary in RRSP contract
2016-07-13 3 June 2016 External T.I. 2016-0647621E5 F - Dividend designation from a trust - timing Income Tax Act - 101-110 - Section 104 - Subsection 104(19) designation not effective until end of year
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a) dividend distributed by a trust to a connected corporation can be subject to Part IV tax due to the delayed implied effective date of s. 104(19) designations
2016-07-06 20 June 2016 External T.I. 2014-0559961E5 F - Subsection 39(4) - securities owned by partnership Income Tax Act - Section 39 - Subsection 39(4.1) limited partners carry on the trading business of their LP for purposes of the election
20 June 2016 External T.I. 2016-0648481E5 F - Small business deduction and GRIP Income Tax Act - Section 89 - Subsection 89(1) - Adjusted Taxable Income CCPCs can choose to forego the small business deduction so as to maximize their GRIP
Income Tax Act - Section 125 - Subsection 125(1) SBD discretionary
20 June 2016 External T.I. 2016-0651951E5 F - Amalgamation - non-capital loss of new corporation Income Tax Act - Section 87 - Subsection 87(2.1) no carryback of losses of new corporation formed by amalgamation of 2 sisters
2016-06-29 16 June 2016 External T.I. 2015-0623031E5 F - Application of paragraph 7(1)(b) Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) contingent amount included under s. 7(1)(b), cannot subsequently be excluded
General Concepts - Effective Date contingent amount included under s. 7(1)(b) cannot later be reversed
4 April 2016 Internal T.I. 2016-0625241I7 F - Application of section 207.31 Income Tax Act - Section 207.31 tax on sales of ecological lands applies even if no deduction was claimed
Income Tax Act - 101-110 - Section 110.1 - Subsection 110.1(1) - Paragraph 110.1(1)(d) tax on subsequent disposition irrespective of deduction claimed
2016-06-22 20 April 2016 External T.I. 2016-0633961E5 F - Computation of safe income - stub period Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) recapture/eligible capital amount realized on sale before safe-income determination time included in safe income
2016-06-15 27 April 2016 External T.I. 2016-0633101E5 F - Attribution of safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) discretionary dividend will not reduce safe income attributable to the other class of discretionary dividend shares to the extent the dividend is taxable under s. 55(2)
Income Tax Act - Section 55 - Subsection 55(1) - Distribution discretionary dividend shares may not satisfy the distribution definition
2016-05-18 15 October 2015 Internal T.I. 2014-0527041I7 F - Disposition de biens Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) merely facilitative expenses not deducible
30 March 2016 External T.I. 2016-0629701E5 F - bump-up 88(1)(d) Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) land developer can bump the cost amount of land (for use by it as land inventory) which was held by a target as capital property when its control was acquired
Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate land developer accesses capital property status of land held in acquired subsidiary
2016-05-11 5 January 2016 External T.I. 2013-0515771E5 F - Établissement semblable agréé Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(B) applicant’s activities not unquestionably SR&ED
31 March 2016 External T.I. 2014-0524391E5 F - Debt parking Income Tax Act - Section 80.01 - Subsection 80.01(8) debt parking rule can apply even if no capital loss is recognized/ applies before s. 53(1)(f.1) add-back
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f.1) application of s. 53(1)(f.1) subsequent to application of debt parking rule
11 August 2015 External T.I. 2014-0527291E5 F - Remboursement de frais médicaux-CIMAD Income Tax Act - Section 118.2 - Subsection 118.2(3) - Paragraph 118.2(3)(b) Quebec Tax Credit for Home-Support Services for Seniors does not reduce METC
Income Tax Act - Section 152 - Subsection 152(1) correction in CRA position not applied on a retroactive basis
15 March 2016 External T.I. 2015-0606911E5 F - Home Accessibility Tax Credit Income Tax Act - Section 118.041 - Subsection 118.041(3) claimant must be a qualifying or eligible individual
2016-04-27 15 December 2015 External T.I. 2015-0602671E5 F - Pompier volontaire Income Tax Act - Section 118.06 - Subsection 118.06(1) interpretation of "volunteer firefighter" not changed by Bourgeois
21 January 2016 Roundtable, 2016-0624811C6 F - Employee Assistance Program Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(iv) restricted to advice, valued at hypothetical cost
21 January 2016 Roundtable, 2016-0624851C6 F - Spousal sharing of charitable gifts made by will Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gifts made by will of the deceased can no longer be treated as gifts by a surviving spouse
21 January 2016 Roundtable, 2016-0624871C6 F - Colloque CPA- Frais médicaux - medical expenses Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(d) nursing home can be part of a facility
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) expenses of doctor travel and of Quebec naturopaths and osteopaths excluded
21 January 2016 Roundtable, 2016-0625131C6 F - Farming losses Income Tax Act - Section 31 - Subsection 31(1) traditional CRA policy on s. 31 is still reflective of its position post-Craig
21 January 2016 Roundtable, 2016-0625161C6 F - Résidence principale habitée par un enfant Income Tax Act - Section 54 - Principal Residence - Paragraph (a) related occupant of a principal residence can be charged FMV rent
21 January 2016 CPA Personal Income Tax Roundtable Q. 7, 2016-0625731C6 F - Fees related to a voluntary disclosure Income Tax Act - Section 60 - Paragraph 60(o) professional fees incurred after a voluntary disclosure is accepted commence to be deductible
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) VDP fees deductible if re business
21 January 2016 Ordre des CPA du Québec Personal Taxation Roundtable Q. 9, 2016-0625141C6 F - Principal residence - duplex Income Tax Act - Section 54 - Principal Residence interior access door to other unit in duplex occupied by elderly parent, and meal sharing, not sufficient to render as one housing unit
2016-03-23 9 March 2016 External T.I. 2016-0630281E5 F - Redemption of shares and changes to 55(2) Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) exemption of s. 84(3) deemed dividend not exceeding safe income
Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) s. 55(2) application to separate dividend
Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(b) demarcation between ss. 55(2)(b) and (c)

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