Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2014-06-18 20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness Income Tax Act - Section 12 - Subsection 12(2.2) s. 12(1)(x)(iv) inclusion from BIA settlement of GST interest and penalties could be offset against related expense
Income Tax Act - Section 248 - Subsection 248(26) unremitted GST and QST were not obligation "issued" by debtor
Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation BIA settlement of unremitted GST interest
Income Tax Act - Section 9 - Forgiveness of Debt BIA settlement of unremitted GST on sales was on capital account
29 May 2014 External T.I. 2014-0520851E5 F - Deferred Salary Leave Plan Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iv) - Clause 6801(a)(iv)(B) no requirement for employer to provide a return on the deferred amounts
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) terms cannot provide for voluntary withdrawal of employee except where hardship
2014-06-04 12 May 2014 External T.I. 2013-0503531E5 F - Discretionary Dividends Shares Income Tax Act - Section 85 - Subsection 85(1.3) grandchild wholly owned by individual directy and through immediate subsidiary is wholly-owned corporation
14 November 2013 Internal T.I. 2013-0485331I7 F - REÉR et revenu d'un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 RPP benefits exempt if contributions exempt/RRSP withdrawals exempt if contributions not deductible
22 May 2014 External T.I. 2014-0519811E5 F - Droit d'usage au Québec pré-1991 Income Tax Act - Section 54 - Principal Residence usufructuary of duplex unit (with her right acquired pre-1991) entitled to claim principal residence exemption on post-1991 disposition
General Concepts - Ownership usufructuary of duplex unit was de facto owner thereof
Income Tax Act - Section 248 - Subsection 248(3) effective grandfathering of right as usufructuary which arose before 1991
18 December 2013 Internal T.I. 2012-0472211I7 F - Voyages offerts par une compagnie Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) Caribbean sales incentive trip provided to incorporated sales reps represents a benefit to them from their corporation
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) Caribbean sales incentive trip provided to incorporated sales reps excluded if s. 6(1)(a) benefit to them qua employee
Income Tax Act - Section 67.1 - Subsection 67.1(4) - Paragraph 67.1(4)(b) Caribbean sales incentive trip is "entertainment"
Income Tax Act - Section 9 - Nature of Income Caribbean sales incentive trip provided to incorporated sales reps was s. 9 income to their corp to extent of personal portion
20 May 2014 External T.I. 2014-0517331E5 F - CII - exploitation agricole Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) test is of intention on acquisition to use over 50%, during months of likely use during the equipment’s lifetime, on farm in the region
Income Tax Act - Section 127 - Subsection 127(27) no ITC reversal if unanticipated transfer of equipment to a farm outside the region
General Concepts - Ownership co-owners entitled to pro rata ITCs
2014-05-28 8 May 2014 External T.I. 2014-0516711E5 F - Accord écrit et Pension alimentaire Income Tax Act - Section 118 - Subsection 118(5) court-ordered support amount obligation cannot be eliminated by agreement
16 May 2014 External T.I. 2014-0526161E5 F - CII des places en garderie Income Tax Act - Section 127 - Subsection 127(9) - Child Care Space Amount owner of child-care facility entitled to ITCs even though development work and operations conducted by its part-owned agent
25 April 2014 External T.I. 2014-0528011E5 F - Subsection 55(2) - redemption of shares Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) increase in direct interest under s. 55(3)(a)(ii) or (v) with no increase in indirect interest; tainting effect on redemption occurring as part of series
15 April 2014 External T.I. 2014-0527231E5 F - Acquisition of control and amalgamation Income Tax Act - Section 249 - Subsection 249(4) key corporate transactions moments before acquisition of control and amalgamation result in such transactions falling in a stub year
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) same day amalgamation following control acquisition gives rise to two taxation year ends if out-of-normal course transactions occur on day of closing
2014-05-21 17 April 2014 External T.I. 2012-0461151E5 F - pension fund real estate Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iii) advance from RPP shareholder is permitted if not evidenced by issuance of debenture etc.
29 April 2014 External T.I. 2014-0518951E5 F - Taxable capital gain designation from a trust Income Tax Act - Section 104 - Subsection 104(21.2) deemed receipt of QSBC gain in year in which trust allocation year ends
2014-05-14 2 May 2014 External T.I. 2014-0520551E5 F - Frais médicaux à l'extérieur du Canada Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) hospitalization expenses at a foreign public hospital or a private licensed hospital could qualify
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(h) accommodation re surgery abroad could qualify even if surgery available locally
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(g) travel to get surgery abroad could qualify as reasonable even where available locally
1 May 2014 External T.I. 2013-0514291E5 F - Redevances sur une oeœuvre musicale dans un film Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) copyright royalty for music used in film is exempt notwithstanding s. 212(5) exclusion
Income Tax Act - Section 212 - Subsection 212(5) s. 212(5) exclusion does not apply to copyright royalty for music used in film
11 April 2014 Internal T.I. 2013-0474851I7 F - Permanent establishment in Canada Treaties - Income Tax Conventions - Article 5 equipment installation project of Franceco lasting more than 12 months including preparing specs and final testing
2014-05-07 2 April 2014 External T.I. 2012-0473151E5 F - Limitation du coût de location d'un véhicule Income Tax Act - Section 67.3 GST ITCs included under element E of formula
Income Tax Act - Section 248 - Subsection 248(16) GST ITCs constitute a “reimbursement” for car lease expense limitation purposes
25 April 2014 External T.I. 2013-0515621E5 F - Frais de voyage / Travelling expenses Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) benefit where employer pays costs of friend to accompany employee on training trip
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

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