Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2014-01-29 14 January 2014 External T.I. 2012-0453871E5 F - Pension Real Estate Corporation Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) ancillary non-real estate investments by an (o.2)(ii) corporation are permitted
4 November 2013 External T.I. 2012-0465231E5 F - Revenu d'emploi d'un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 location of actual direction and administration of the employer on the reserve, as well as main place of employees’ abode there are important connecting factors
27 September 2013 External T.I. 2012-0472981E5 F - Chantier part. - nature temporaire Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) application of 2-year posting test to determining whether "duties … of a temporary nature"
11 October 2013 Roundtable, 2013-0495591C6 F - Déplacement entre résidence et chantier Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) employer-requested travel to and from employee’s residence and a non-usual place of work is non-personal
11 October 2013 Roundtable, 2013-0495701C6 F - Financement participatif Income Tax Act - Section 9 - Nature of Income crowdfunding amounts received by an entrepreneur are prima facie business income
17 July 2013 External T.I. 2012-0473261E5 F - Actif d'impôts futurs / Future income tax assets Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share future (or deferred) income tax asset is not an asset until it becomes receivable, whereupon it may be attributable to active business
Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation tax receivable arising from carryback of NCL is active business asset cf. future tax asset
11 October 2013 APFF Roundtable, 2013-0495651C6 F - Revenu fractionné Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) streaming of non-split income to child discretionary beneficiary and split income to mother
Income Tax Act - 101-110 - Section 104 - Subsection 104(13) streaming of split and non-split income between trust beneficiaries
2014-01-22 6 January 2014 External T.I. 2013-0512041E5 F - Dividend Designation under subsection 89(14) Income Tax Act - Section 89 - Subsection 89(14) designation can be on all (rather than just part) of the dividend
9 December 2013 External T.I. 2013-0507931E5 F - Financing fees Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures intragroup cash pool utilization fees are capital expenditures
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.1) annual internal cash pool utilization fees likely are deductible under s. 20(1)(e.1)
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) cash pool utilization fees could be deductible under s. 20(1)(e)
3 January 2014 External T.I. 2013-0514021E5 F - Subsection 55(2) - redemption of shares Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) dividend recipient unrelated to nephew's company; "small" percentage not "significant;" previous estate freeze might be part of series
18 December 2013 External T.I. 2011-0414841E5 F - All interests vested indefeasibly Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Trust - Paragraph (g) s. 75(2) trust made non-discretionary to avoid 21-year rule
2014-01-15 15 October 2013 External T.I. 2013-0498001E5 F - Transfert de sommes inutilisées entre régimes Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan transfer from individual healthcare spending account to another PHSP is permitted
28 November 2013 External T.I. 2013-0504221E5 F - Fin d'années réputées Income Tax Act - Section 249 - Subsection 249(3.1) Amalco not a continuation of predecessors for election purposes/ "immediately before" treated as one minute before
8 October 2013 External T.I. 2011-0428931E5 F - Assurance-invalidité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose non-deductibility of disability insurance premiums
Income Tax Act - Section 9 - Exempt Receipts/Business proceeds received as a result of business credit card insurance were not income
15 October 2013 Internal T.I. 2013-0491951I7 F - Travaux en cours au moment du retrait d'un associé Income Tax Act - Section 34 no new s. 34 election required if s. 98(6) or (5) applies/election can be made in income reconciliation
18 December 2013 External T.I. 2013-0479421E5 F - Section 30 and Cranberry Farm Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense initial cranberry plant planting is a cost of land
Income Tax Act - Section 30 costs of clearing, levelling and draining lands, but not of constructing basins, for a cranberry farm are currently deductible
Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) costs of constructing cranberry farm basins included in Class 17
Income Tax Regulations - Schedules - Schedule II - Class 6 costs of constructing irrigation pond included
Income Tax Regulations - Schedules - Schedule II - Class 8 irrigation system included, drainage costs deductible under s. 30
30 October 2013 External T.I. 2013-0500831E5 F - Frais de bureau à domicile Income Tax Act - Section 8 - Subsection 8(13) inapplicable where corporation uses its individual shareholder's office
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose to deduct applicable home expenses, individual shareholder must charge rent to corporation using home office
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) incidental rental use of home does not result in part disposition
12 November 2013 Internal T.I. 2013-0497611I7 F - Feuillet T1204 Income Tax Regulations - Regulation 237 - Subsection 237(2) T1204 disclosure applicable only where contract with federal supplier and includes travel reimbursements as “services” consideration
11 October 2013 APFF Roundtable, 2013-0495771C6 F - Late eligible dividend designation Income Tax Act - Section 89 - Subsection 89(14.1) late designation generally available where CRA, contrary to grounded expectations, denied small business deduction status thereby retroatively creating GRIP/late designation cannot be used to delay GRIP computation
11 October 2013 APFF Roundtable, 2013-0495681C6 F - Bien de remplacement Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(b) a different related person can use the replacement property in a similar business
11 October 2013 APFF Roundtable, 2013-0495631C6 F - Actions admissibles de petites entreprises Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share failure to satisfy the 50% test for even a moment in time will disqualify
Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation 90% is generally a safe harbour, and in a particular context CRA may accept lower than 90%
11 October 2013 APFF Roundtable, 2013-0495641C6 F - Taux de rendement annuel moyen Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(9) average annual rate of return on estate freeze hi-low prefs based on redemption amount, not PUC
11 October 2013 APFF Roundtable, 2013-0495691C6 F - Clause restrictive Income Tax Act - Section 56.4 - Subsection 56.4(1) - Eligible Interest must be one, rather than more than one, underlying corp
Income Tax Act - Section 56.4 - Subsection 56.4(3) - Paragraph 56.4(3)(c) non-solicitation clause/divergence of covenanter and seller
Income Tax Act - Section 56.4 - Subsection 56.4(7) - Paragraph 56.4(7)(b) non-solicitation clause could be treated as part of a non-compete
Income Tax Act - Section 56.4 - Subsection 56.4(7) - Paragraph 56.4(7)(f) maintenance of Holdco fmv/divergence of seller and covenanter
11 October 2013 APFF Roundtable, 2013-0496511C6 F - Actions prescrites Income Tax Regulations - Regulation 6205 - Subsection 6205(2) simultaneous freezes by arm's length shareholders for their respective families to not qualify because the respective trusts/beneficiaries are not NAL with each freezor
11 October 2013 APFF Roundtable, 2013-0495671C6 F - Déduction d'une partie d'une créance irrécouvrable Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) 20(1)(p)(i) deduction for trade debts of a customer are determined on a receivable by receivable basis

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