Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-09-21 27 April 2016 External T.I. 2016-0625001E5 F - Surplus Stripping Income Tax Act - Section 84 - Subsection 84(2) using a trust to funnel a deemed dividend from creating PUC to a Holdco beneficiary and funnelling that PUC to the individual beneficiary, is surplus stripping
Income Tax Act - Section 245 - Subsection 245(4) funnelling deemed dividend to holdco trust beneficiary and resulting PUC to individual beneficiary/shareholder was surplus stripping
Income Tax Act - Section 104 - Subsection 104(24) distribution of s. 84(1) dividend effected with note issuance
2 May 2016 External T.I. 2016-0633351E5 F - Descarries Case and Document no. 2015-0610711C6 Income Tax Act - Section 245 - Subsection 245(4) Descarries not to be construed narrowly
Income Tax Act - Section 84.1 - Subsection 84.1(1) purpose of 84.1 not restricted to monetization transactions
2016-09-14 11 April 2016 External T.I. 2015-0564161E5 F - IT-522R par. 36 Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) non-taxable s. 6(1)(b)(v) allowance for one type of expense does not preclude s. 8(1)(f) deduction for other types
1 December 2015 Internal T.I. 2015-0588381I7 F - Classification of US-LLCs Income Tax Act - Section 248 - Subsection 248(1) - Corporation status of Delaware, NY and Florida LLCs as corps not affected by Quebec residence of member
Income Tax Act - Section 96 corporation/partnership classification of foreign entity not affected by Quebec residence of member
Statutory Interpretation - Interpretation Act - Section 8.1 8.1 effected no change/2 step-approach should be inter-provincial
10 June 2016 External T.I. 2015-0590371E5 F - Résidence principale - stationnement Income Tax Act - Section 54 - Principal Residence - Paragraph (e) a parking space can form part of a condo housing unit
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) designating condo parking space for a year does not exhaust exemption for the condo unit
5 January 2016 External T.I. 2015-0568911E5 F - MRC - Revenu d’entreprise Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.5) Quebec regional county municipality is municipality
Income Tax Act - Section 256 - Subsection 256(5.1) test references dominant person
10 June 2016 External T.I. 2015-0587131E5 F - Remboursement de frais de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) meal reimbursements within same metro area not a taxable benefit if purpose is to enhance efficiency
2016-09-07 13 July 2016 External T.I. 2013-0478961E5 F - Interest in a family farm or fishing partnership Income Tax Act - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership qualification of partnership units as interests in a family farm or fishing partnership can be based on a previous period of farming use of its assets
13 July 2016 External T.I. 2013-0513701E5 F - Montant pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) child accepted as ordinarily residing with parent with joint custody
7 June 2016 External T.I. 2014-0532451E5 F - Crédit pour la création d’emplois pour apprentis Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice apprenticeship contracts include collective agreements/24-month period runs from issuance of apprentice competency certificate
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 - 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 - 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

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