Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-11-30 7 October 2016 APFF Roundtable Q. 20, 2016-0655831C6 F - Employee Buycos and the Poulin Case Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) Poulin distinction between accommodation parties and tax advantaged arm’s length dealings accepted
Income Tax Act - Section 84.1 - Subsection 84.1(1) Poulin accepted
7 October 2016 APFF Roundtable Q. 21, 2016-0655901C6 F - Section 7 and bonus paid in share Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) s. 7 can govern bonuses paid in shares where discretion ceases prior to the issuance
Income Tax Act - Section 84 - Subsection 84(1) - Paragraph 84(1)(b) PUC of shares issued in satisfaction of bonus equal to bonus amount
Income Tax Act - Section 7 - Subsection 7(1.1) 7(1.1) applicable to non-discretionary bonus payable in shares
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 1, 2016-0651771C6 F - Critical Illness Insurance Income Tax Act - Section 15 - Subsection 15(1) benefit on gratuitous transfer of critical illness policy by corporation to its shareholder
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 2, 2016-0651711C6 F - RRIF, Transfer of designated benefit Income Tax Act - Section 146.3 - Subsection 146.3(6.11) computation of eligible amount following year of death
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 3, 2016-0651761C6 F - Transfer of a Life Insurance Policy Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) s. 148(7)(a) prevails over s. 69(1)(b) and 52(2), but not s. 69(5)
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 4, 2016-0651791C6 F - Choix 45(2) et (3) - immeuble à logements Income Tax Act - Section 45 - Subsection 45(3) invalidity of s. 45(3) elections on duplex units applied only for changes of use after February 21, 2012
Income Tax Act - Section 54 - Personal-Use Property land underlying duplex used 40% personally is not personal-use property
Income Tax Regulations - Regulation 1102 - Regulation 1102(2) Reg. 1102(2) deems building to be separate from land and does not bifurcate the land
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iii) capital loss recognition on land underlying duplex used 40% personally
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 5, 2016-0651721C6 F - Application of subsections 146(16) and 73(1) after death Income Tax Act - Section 146 - Subsection 146(16) no tax deferred transfer if by estate
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) no rollover if transferor spouse dies before transfer pursuant to separation agreement made
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 6, 2016-0651741C6 F - Named beneficiary Income Tax Act - Section 122 - Subsection 122(3) - qualified disability trust - Paragraph (b) beneficiary must be specifically named
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust Income Tax Act - Section 122 - Subsection 122(2) recovery tax applies to undistributed income in a QDT at the time of the disabled beneficiary’s death
Income Tax Act - Section 159 - Subsection 159(2) potential liability of QDT trustee for s. 122(1)(c) recovery tax
Income Tax Act - Section 122 - Subsection 122(3) - qualified disability trust s. 122(1)(c) liability in year of death of disabled beneficiary
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 8, 2016-0651731C6 F - Gift by a Former Graduated Rate Estate Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(ii) gifts made in Year 5 by a but-for GRE can only be claimed before death or in Years 5 to 10
Income Tax Act - Section 118.1 - Subsection 118.1(5.1) qualification of gift made in Year 5 of former GRE
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 9, 2016-0651801C6 F - Assurance-vie à assurés multiples-110.6(15) Income Tax Act - Section 110.6 - Subsection 110.6(15) - Paragraph 110.6(15)(a) corporate-owned policy is valued at CSV even if non-shareholder lives are included
Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation corporate-owned policy valued for SBC or QSBCS purposes at the cash surrender value even if non-shareholder lives are included
2016-11-23 12 December 2014 Internal T.I. 2014-0524751I7 F - Redevances perçues d'avance
2016-11-16 2 August 2016 External T.I. 2014-0544941E5 F - Interaction between ss. 111(12) and 80.01(3) Income Tax Act - Section 111 - Subsection 111(12) no accrued FX loss on a loan owing by a target to a sub is realized on an AOC where there is a same-day amalgamation and no time-stamping
Income Tax Act - Section 80.01 - Subsection 80.01(3) deemed settlement under 80.01(3) before operation of 111(12)
24 June 2016 External T.I. 2015-0571471E5 F - Passe de ski familiale Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no taxable benefit if all employees given season’s pass at ski resort/gift policy also applicable
2016-10-19 22 June 2016 Internal T.I. 2016-0632821I7 F - 93(2.01) & Capital Contribution Income Tax Act - Section 93 - Subsection 93(2.01) a contribution of FA1 shares to FA2 causes the FA2 shares to be substituted property for s. 93(2.01) purposes
Income Tax Act - Section 248 - Subsection 248(5) ordinary meaning of “substituted”
Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B) inter-affiliate loan generating deemed active business funded out of an interest-free loan from Canco
2016-10-12 30 June 2016 External T.I. 2015-0583561E5 F - Déduction pour gain en capital - contamination Income Tax Act - Section 110.6 - Subsection 110.6(1.1) AgriInvest accounts do not affect qualification of family farm or fishing corporations
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation AgriInvest accounts do not taint family farm or fishing corporations
Income Tax Act - Section 248 - Subsection 248(1) - Net Income Stabilization Account Agri-Québec and AgriInvest accounts included
2016-10-05 13 May 2016 External T.I. 2016-0635601E5 F - Dépenses de commandite Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(i) general overview of deductibility limitations re sponsorship expenses
27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) loan advances to a limited partner may give rise to immediate s. 53(2)(c)(v) grind
Income Tax Act - Section 40 - Subsection 40(3.1) loans by LP to partner potentially gave rise to negative ACB gain
Income Tax Act - Section 40 - Subsection 40(3.13) retention of partnership profits not a contribution
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) assumption of loan can be contribution, but not retained profits
2016-09-28 16 June 2016 Internal T.I. 2015-0597971I7 F - Perte réputée nulle - loss deemed nil Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) capital loss potentially could be recognized on a non-interest bearing loan made to a corporation in which the taxpayer had no equity/subordinate purpose sufficient
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) BIL potentially could be recognized on a non-interest bearing loan made to a corporation in which the taxpayer had no equity
17 May 2016 External T.I. 2015-0603711E5 F - Personne assumant les frais d'entretien Income Tax Act - Section 63 - Subsection 63(3) - Supporting Person parent living abroad was not a supporting person

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