Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2014-05-07 2 April 2014 External T.I. 2014-0521041E5 F - Application de 13(7.1) Income Tax Act - Section 13 - Subsection 13(7.1) no s. 13(7.4) election required where s. 13(7.1) applies
Income Tax Act - Section 13 - Subsection 13(7.4) general requirements for s. 13(7.4) to apply
11 March 2014 Internal T.I. 2013-0513221I7 F - Stock options Income Tax Act - Section 15 - Subsection 15(1) double income inclusion under s. 56(2) or (4) to consulting corporation, and under s. 15(1) to its shareholder, where consultant's options issued directly by client to shareholder
Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) benefit where corporation implicitly consented to consultant's options being issued by client directly to its shareholder
Income Tax Act - Section 56 - Subsection 56(4) implicit transfer by corporation when stock options earned by it were issued directly by its client to its shareholder
Income Tax Act - Section 248 - Subsection 248(28) s. 248(28) does not prevent a double income inclusion to corporation under s. 56 and shareholder under s. 15
Income Tax Act - Section 9 - Timing no s. 9(1) income inclusion from consultant being granted stock options until exercise
General Concepts - Fair Market Value - Options stock options with no in-the-money value could have nil FMV
Income Tax Act - Section 52 - Subsection 52(1) s. 15 benefit due to shareholder receipt of stock options earned by corporation added to the ACB of the exercised shares
3 April 2014 External T.I. 2013-0512371E5 F - Qualification des montants gagnés au jeu de poker Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit on-line poker winnings were from more than a pastime
2014-04-30 27 March 2014 External T.I. 2014-0524851E5 F - Deemed year-end and CPCC status Income Tax Act - Section 249 - Subsection 249(3.1) Ekamant: s. 251(5)(b) does not vitiate actual control by share owner
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) sub of public corporation does not become CCPC until time of its actual acquisition of control
27 March 2014 External T.I. 2014-0520941E5 F - Industrial mineral mine and related expenditures Income Tax Act - Section 13 - Subsection 13(7.5) - Paragraph 13(7.5)(b) access road deemed to have been "acquired"
Income Tax Regulations - Schedules - Schedule II - Class 17 access road to quarry was Class 17 property notwithstanding that not owned
Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(g) ordinary meaning of "mineral"
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Start-Up and Close-Down Expenditures expenditures deductible where incurred prior to acquisition decision
26 March 2013 External T.I. 2014-0523251E5 F - Acquisition of control and amalgamation Income Tax Act - Section 249 - Subsection 249(4) double taxation year ends where transactions occur on the closing date before acquisition and amalgamation
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) double taxation year ends where transactions occur on the closing date before acquisition and amalgamation
10 March 2014 Internal T.I. 2013-0493971I7 F - Application of section 120.4 Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) allocation of income to partner not responsible for expenses
Income Tax Act - 101-110 - Section 103 - Subsection 103(1) income-splitting partnership terms
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) LP income not from property provision or services
2014-04-23 12 November 2013 External T.I. 2012-0471621E5 F - Moving expenses - eligible relocation Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation a multiple move may consist of one or more eligible relocations, and if there is one eligible relocation from Residence 1 to 3, the intermediate moving costs can be deductible
Income Tax Act - Section 62 - Subsection 62(3) - Paragraph 62(3)(a) costs of moving pets by air could qualify
Income Tax Act - Section 62 - Subsection 62(3) - Paragraph 62(3)(b) moving furniture to ultimate residence could qualify if not ordinarily residing at intermediate residence
Income Tax Act - Section 62 - Subsection 62(3) reasonable gas expenses but not car tune-up costs can qualify
9 April 2014 External T.I. 2013-0503421E5 F - Transitional reserve Income Tax Act - Section 34.2 - Subsection 34.2(11) transitional adjustment where partnership loss in year 1 followed by 2 profitable years
12 February 2014 Internal T.I. 2013-0508841I7 F - Application of subsection 75(2) Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) does not apply to attribute business losses allocated to the trust by an LP
17 December 2013 Internal T.I. 2013-0510111I7 F - Automobile mise à la disposition d'un employé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) administrative office and third-party office in another city could both be workplaces
31 January 2014 External T.I. 2013-0500501E5 F - Indien - Retenues à la source - RPA Other Legislation/Constitution - Federal - Indian Act - Section 87 procedure for adjusting exempt portion of prior years’ RPP pension payments made to Indian
2014-04-16 14 February 2014 External T.I. 2012-0454481E5 F - Safe Income Income Tax Act - Section 34.2 - Subsection 34.2(11) transitional reserve deduction is in taxpayer's discretion
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) not claiming s. 34.2(11) transitional reserve to increase SIOH
Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(c) no departures permitted from s. 34.2 adjustments
11 October 2013 Roundtable, 2013-0499671C6 F - Actif d'impôts futurs / Future income tax assets Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation future income tax asset is not an asset – tax receivable is, but is an active business asset if it arose from active business
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) - Subparagraph (c)(i) future income tax asset is not an asset/tax receivable can be used in an active business
2014-04-09 26 February 2014 External T.I. 2013-0510921E5 F - Remboursement de frais médicaux à un employé Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose no need to demonstrate income production
3 March 2014 External T.I. 2014-0518791E5 F - Réinstallation admissible Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation 40-kilometre test is met if it is met going home from work but not to work
2014-04-02 24 February 2014 External T.I. 2013-0505391E5 F - Clause de earnout renversé Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) no capital gains reserve on reverse earn-out for a share sale
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) a sale price that is subject to a reverse earnout is not considered to be payable after the year (no reserve)
11 February 2014 External T.I. 2014-0517611E5 F - Actions d'une société agricole familiale Income Tax Act - Section 70 - Subsection 70(10) - Share of the Capital Stock of a Family Farm or Fishing Corporation - Paragraph (b) "principally" refers to the majority of years, so that active farming by deceased father could qualify shares, transferred years' thereafter, by passive child
7 March 2014 Internal T.I. 2013-0506671I7 F - Subparagraph 104(27)(d)(ii) and paragraph 60(j) Income Tax Act - 101-110 - Section 104 - Subsection 104(27) - Paragraph 104(27)(d) - Subparagraph 104(27)(d)(ii) flow-through pension benefit must have been an s. 60(j) eligible amount had it had been received directly

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