Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-02-24 7 January 2016 External T.I. 2015-0610201E5 F - HBP-Acquisition of a condominium unit Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(b) meaning of vacant possession
Income Tax Act - Section 248 - Subsection 248(1) - Self-Contained Domestic Establishment elf-contained domestic establishment has restricted access and a kitchen, bathroom and sleeping space
2016-02-17 8 December 2015 External T.I. 2015-0608781E5 F - Associated corporations - discretionary trust Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) - Subparagraph 256(1.2)(f)(ii) beneficiary includes beneficially entitled/combined application of 256(1.2)(f)(ii) and 256(1.3), but shares attributed only once]
Income Tax Act - Section 256 - Subsection 256(1.3) no double-counting of shares in applying s. 256(1.3) to shares deemed to be owned by minor trust beneficiaries
22 January 2016 External T.I. 2015-0617601E5 F - Pipeline followed by butterfly Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction can be coupled with a butterfly split-up
Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(b) where pipeline transaction followed by split-up butterfly, the opco also is a distributing corporation
21 December 2015 External T.I. 2015-0617731E5 F - 55(2) and creditor proofing Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) Opco dividend to Holdco whose sole purpose is creditor-proofing is subject to s. 55(2)
2016-02-10 28 January 2016 External T.I. 2015-0617771E5 F - Bump calculation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(i) future income tax liabilities not treated as obligations to pay an amount
2016-01-27 7 December 2015 External T.I. 2015-0585171E5 F - 7(1)(b) benefit and 110(1.1) election Income Tax Act - Section 110 - Subsection 110(1.1) election not available if employee stock options on Target shares are purchased by the purchaser rather than surrendered to Target
2016-01-20 26 March 2015 Internal T.I. 2013-0503031I7 F - Existence d’une source de revenu Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit individual’s sideline activity not a business so that revenues exempt
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose criteria for determining whether a home is a principal place of business
8 June 2015 External T.I. 2014-0529851E5 F - Frais payés à une maison de santé ou de repos Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(e) no 2nd credit under s. 118.3 re accommodation expenses in nursing home
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(d) floor of retirement residence servicing those with advanced Alzheimer’s can qualify as “nursing home”
Income Tax Act - Section 118.2 - Subsection 118.2(1) expenses can be claimed based on 12-month period ending in year
3 December 2015 External T.I. 2015-0593941E5 F - Allocation of the safe income on hand Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) flexible allocation of SIOH where discretionary common shares
General Concepts - Fair Market Value - Shares FMV of discretionary share increased at moment of dividend declaration to exclusion of other discretionary shares
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) quaere whether 7% reduction is significant/ $50,000 is significant in absolute terms
11 December 2015 External T.I. 2015-0601561E5 F - Attribution Rules Income Tax Act - Section 74.4 - Subsection 74.4(2) annual dividends by an SBC to a non-SBC are not an indirect transfer of property to the non-SBC by the individual who formed the SBC
8 December 2015 External T.I. 2015-0613401E5 F - Attribution Rules Income Tax Act - Section 74.4 - Subsection 74.4(2) “technically” s. 74.4(2) may be avoided through a stock dividend
8 December 2015 External T.I. 2015-0616321E5 F - CEE - Severance pay Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (a) severance payment not includible in CEE
Income Tax Regulations - Regulation 1206 - Subsection 1206(1) - Canadian exploration and development overhead expense exclusion of severance payment
2016-01-13 2 October 2015 External T.I. 2012-0463801E5 F - Déduction pour gain en capital – permis de pêche Income Tax Act - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(b) para. (b) test need only be satisfied at end of 24-month period
28 July 2015 External T.I. 2015-0585431E5 F - Frais juridiques Income Tax Act - Section 42 - Subsection 42(1) - Paragraph 42(1)(b) legal expenses incurred by property vendor deemed to reduce proceeds or generate capital loss under s. 42(1)(b)
10 October 2014 APFF Roundtable Q. 13, 2014-0538111C6 F - Boni suite à la signature d'un contrat d'appro Income Tax Act - Section 9 - Timing Canderel and Ikea principles
2016-01-06 8 December 2015 External T.I. 2015-0610921E5 F - Associated corporations - child under 18 Income Tax Act - Section 256 - Subsection 256(1.3) s. 256(1.3) can apply where minor turns 18 shortly after the year's start
3 December 2015 External T.I. 2015-0613761E5 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account exempting a capital gain doubles the CDA addition
2015-12-30 29 October 2015 External T.I. 2015-0589051E5 F - Pension income splitting and bankruptcy Income Tax Act - Section 60.03 - Subsection 60.03(1) - Split-Pension Amount election available where pensioner or pension transferee is bankrupt/apportionment of split-pension amount
Income Tax Act - Section 128 - Subsection 128(2) - Paragraph 128(2)(f) s. 60.03 deductions/inclusions still available
6 November 2015 External T.I. 2015-0611691E5 F - Member of a cooperative corporation Income Tax Act - Section 136 - Subsection 136(2) - Paragraph 136(2)(c) meaning of “member” informed by corporate law rather than 135(4) definition
2015-12-23 30 July 2015 External T.I. 2014-0552041E5 F - Permis XXXXXXXXXX Income Tax Regulations - Schedules - Schedule II - Class 14 renewable government licences were ECP, not Class 14
Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure renewable government licences were ECP, not Class 14
26 August 2015 External T.I. 2015-0564171E5 F - Paiements d'un RPAC à un Indien Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(a) pension distribution to Indian included in income under s. 56(1)(z.3) before excluded under s. 81(1)(a)
Income Tax Act - Section 153 - Subsection 153(1.1) procedure for reduced withholding on pension distributions to status Indian
6 August 2015 External T.I. 2015-0565651E5 F - Reliquat dévolu à une administration municipale Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) personal benefit rule applies to liquidation right of municipal member
2015-12-09 9 October 2015 APFF Roundtable Q. 1, 2015-0595751C6 F - Deductibility of financing fees and 20(1)(e)(v) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) discharge of a debt through its assumption or cash proceeds from sub transferee denies a s. 20(1)(e)(v) deduction
9 October 2015 APFF Roundtable Q. 2, 2015-0595521C6 F - Meaning of "actively engaged" Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(D) IT-349R3 and IT-268R4 potentially relevant to meaing of "actively engaged on a regular basis"
9 October 2015 APFF Roundtable Q. 3, 2015-0595761C6 F - Application of ss. 18(3.1) Income Tax Act - Section 18 - Subsection 18(3.1) - Paragraph 18(3.1)(a) no capitalization of repair/maintenance expenses incurred during renovation etc.
9 October 2015 APFF Roundtable Q. 4, 2015-0595541C6 F - Computation of taxable benefit Income Tax Act - Section 15 - Subsection 15(1) determination of normal yield re shareholder-provided luxurious property
9 October 2015 APFF Roundtable Q. 5, 2015-0595651C6 F - Frais de garde subventionnés
23 October 2015 External T.I. 2015-0614231E5 F - Frais de garde subventionnés Income Tax Act - Section 63 - Subsection 63(1) additional Quebec child care contribution is deductible in the care year rather than the subsequent return-filing year (assuming timely payment to ARQ)

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