Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2014-07-16 26 June 2014 External T.I. 2014-0523871E5 F - Revenu d'entreprise agricole Income Tax Act - Section 12 - Subsection 12(10.2) government contributions and accrued interest in AgriInvest and Agri-Québec accounts are taxable when withdrawn
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(p) withdrawals from the AgriStability account are taxable as farm business income
2014-07-02 14 April 2014 Internal T.I. 2013-0516151I7 F - Article XIII(4) of the Canada-XXXXXXXXXX Convention Treaties - Income Tax Conventions - Article 13 partnerships holding Quebec real estate were transparent for purposes of Treaty "consists of" test
3 June 2014 External T.I. 2013-0503511E5 F - Discretionary Dividend Shares Income Tax Act - Section 110.6 - Subsection 110.6(7) discretionary dividend prefs used to extract excess cash
2014-06-25 23 May 2014 External T.I. 2014-0518921E5 F - Calcul de l'élément A du MCIA Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital A.1 of A reduction does not apply in year of sale
27 May 2014 Internal T.I. 2014-0521631I7 F - Déductibilité d'un alcoomètre Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose not necessary to show that expenditure generated income - and potential deduction where 20% personal use
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) full personal element if the expense would have otherwise been paid by the employee
3 June 2014 External T.I. 2014-0518911E5 F - Grand routier / long-haul truck Income Tax Act - Section 67.1 - Subsection 67.1(5) - Long-haul truck weight reference is to loaded weight determined by manufacturer
2014-06-18 28 May 2014 External T.I. 2013-0486111E5 F - RRSP, prohibited investment Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage no advantage on s. 51 exchange
Income Tax Act - Section 207.01 - Subsection 207.01(13) s. 51 exchange of transitional prohibited property does not trigger s. 207.04(1) tax
Income Tax Act - Section 207.05 - Subsection 207.05(4) s. 207.05(4) status is preserved following s. 51 exchange
20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) BIA settlement of GST interest and penalties included under s. 12(1)(x)(iv)
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

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