Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2024-02-07 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)
2 November 2023 APFF Roundtable Q. 6, 2023-0982831C6 - Paragraph 12(1)(x) Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance CAE followed
2 November 2023 APFF Roundtable Q. 7, 2022-0942171C6 F - Indemnité payée pour libérer temporairement un logement locatif Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense compensating a tenant for temporary displacement from a rental property being improved and repaired by the landlord may be a current deduction
2 November 2023 APFF Roundtable Q. 8, 2023-0982881C6 - Revision of Capital Cost Allowance Claims Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims CRA will continue on a discretionary basis to accept revisions to prior years’ CCA claims for nil-income years
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E CRA will exercise its discretion in IC84-1 having regard to avoiding inappropriate tax results
2 November 2023 APFF Roundtable Q. 9, 2023-0982911C6 - APFF - Congrès 2023 - Table ronde sur la fiscalité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss - Damages bitcoin loss from fraud might be capital loss, and timing of a loss could be governed by s. 44(2)
Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (b) damages for loss of bitcoin from fraud would be compensation for property unlawfully taken
Income Tax Act - Section 54 - Personal-Use Property bitcoin to be used for online purchases is not personal-use property
2 November 2023 APFF Roundtable Q. 10, 2023-0993641C6 - APFF - Congrès 2023 Q.10 disposition de cryptomonnaie Income Tax Act - Section 248 - Subsection 248(1) - Disposition there likely was a disposition of bitcoin on its transfer to a bitcoin platform
General Concepts - Ownership bitcoin platform likely acquired ownership of bitcoin deposited with it
2 November 2023 APFF Roundtable Q. 11, 2023-0983621C6 F - Paragraph 12(1)(x) and Non-Refundable Tax Credit Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(k) Quebec synergy tax credit is received on the due date for the related return, or when a carryforward or carryback request is made for it
2 November 2023 APFF Roundtable Q. 12, 2023-0982931C6 F - APFF - Congrès 2023 - Table ronde sur la fiscalité General Concepts - Evidence documentation of a loss from the collapse of a crypto exchange
2 November 2023 APFF Roundtable Q. 13, 2023-0982941C6 F - APFF - Congrès 2023 - Table ronde sur la fiscalité Other Legislation/Constitution - Federal - Bankruptcy and Insolvency Act - Section 69 - Subsection 69(4) where a contested notice of assessment is subject to a stay, it generally must apply to the bankruptcy court for lifting the stay
Income Tax Act - Section 152 - Subsection 152(8) stay of proceedings under the BIA is a procedural limitation that does not affect an assessment’s validity
2 November 2023 APFF Roundtable Q. 14, 2023-0982951C6 F - Article 56.4 L.I.R. - Clauses restrictives Income Tax Act - Section 56.4 - Subsection 56.4(7) - Paragraph 56.4(7)(g) CRA will entertain applications for late s. 56.4(7)(g) (letter) elections
2 November 2023 APFF Roundtable Q. 15, 2023-0982901C6 - Impact of the Collins Family Trust decision Income Tax Act - Section 152 - Subsection 152(1) CRA lacks discretion to not apply the provisions of the ITA as judicially interpreted
2024-01-31 22 June 2023 External T.I. 2018-0746741E5 F - Eligible dividend allocation Income Tax Act - Section 104 - Subsection 104(19) eligible and non-eligible dividend can be wholly designated to two respective beneficiaries
Income Tax Act - Section 104 - Subsection 104(13) a discretionary trust can wholly allocate each of an eligible and a non-eligible dividend to each of two recipient beneficiaries
2023 Ruling 2022-0955451R3 F - Post mortem pipeline Income Tax Act - Section 84 - Subsection 84(2) conventional post-mortem pipeline transaction
2024-01-24 21 December 2023 External T.I. 2016-0654081E5 F - Transfer of life insurance
21 December 2023 External T.I. 2020-0866651E5 F - Transfer of life insurance Income Tax Act - Section 148 - Subsection 148(7) a trust distribution of a life insurance policy to a beneficiary treated as being made for FMV consideration equal to the part of the beneficiary’s capital or income interest that is satisfied
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 2, 2023-0978631C6 F - CELIAPP - Autoconstruction d'une habitation - FHSA - Self-construction Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (a) acquisition of home is when it becomes habitable
Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) written agreement for construction before October 1 could be satisfied with agreements with trades by self-constructing individual
2023-12-20 6 November 2019 Internal T.I. 2019-0798021I7 F - Assessment under 159(3) Income Tax Act - Section 159 - Subsection 159(3) trustees were liable under s. 159(3) notwithstanding having obtained a post-distribution s. 159(2) certificate
2023-12-06 17 December 2018 Internal T.I. 2016-0659031I7 F - Attendance of board of directors meeting by phone Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) participation in Canadian board meetings by telephone from outside Canada is not the exercise of the office in Canada
Income Tax Regulations - Regulation 104 - Subsection 104(2) no withholding on directors’ fees from duties not exercised in Canada
2023-11-29 4 October 2023 Internal T.I. 2020-0837811I7 F - Suspended loss Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i) suspended loss rule continued to apply when the transferee was amalgamated, then wound-up into the transferor
Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(a) corporation in its 2 capacities of transferor, and continuation of transferee, was affiliated with itself
2023 Ruling 2022-0923451R3 F - 55(3)(a) internal reorganization Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) indirect spin-off of subsidiary groups to 2 transferee corporations held by holding companies for 2 brothers while such transferee corporations are controlled by father with special voting shares
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) proration of DSI on s. 55(3)(a) spin-offs based on the net cost amount of the property spun off
2023-10-18 2022 Ruling 2022-0937661R3 F - 104(4) and pipeline transaction Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction to raise the funds for the application of the CRA s. 104(5.8) GAAR position to an inter vivos trust used to try to avoid the 21-year deemed disposition
Income Tax Act - Section 104 - Subsection 104(5.8) GAAR applicable to trust holding a corporate beneficiary that was distributed property from an inter vivos trust approaching its 21st anniversary
Income Tax Act - Section 245 - Subsection 245(2) GAAR treated as self-applying
2023-10-11 9 June 2017 External T.I. 2017-0700961E5 F - Retenues à la source Income Tax Regulations - Regulation 100 - Subsection 100(3) - Paragraph 100(3)(c) no withholding where RCA pays retiring allowance to RRSP that is an s. 60(j.1) eligible amount or within the RRSP deduction limit
24 January 2023 External T.I. 2018-0753471E5 F - Supplément remboursable pour frais médicaux Income Tax Act - Section 122.6 - Adjusted Income adjusted income does not include income of spouse who died in the year
2023-09-20 5 July 2023 External T.I. 2022-0954271E5 F - Retention of books and records Income Tax Regulations - Regulation 5800 - Subsection 5800(1) - Paragraph 5800(1)(a) - Subparagraph 5800(1)(a)(iv) generally only the GL rather than ancillary journals or back-up are subject to the extended corporate accounting-record retention period
Income Tax Regulations - Regulation 5800 - Subsection 5800(1) - Paragraph 5800(1)(a) - Subparagraph 5800(1)(a)(v) special contract is one containing an unusual provision
2023-09-13 11 September 2017 External T.I. 2017-0706851E5 F - Changement partiel d'usage - Immeuble locatif Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) - Subparagraph 45(1)(c)(i) partial change-of-use rules applied when a non-resident with a s. 216 rental triplex immigrates to Canada and moves into one of the units

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