Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2014-04-23 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 - 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 - 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
14 February 2014 External T.I. 2013-0504601E5 F - Bénéfices de fabrication et de transformation Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (c) construction exclusion avoided if road asphalt is produced by related corp
General Concepts - Separate Existence avoidance through M&P carried on through related corp
7 March 2014 Internal T.I. 2013-0507171I7 F - Obligation de produire un T4A Income Tax Regulations - Regulation 200 - Subsection 200(1) dual T4A issuance for fees to artist's corporation and dues to the artist's union
2014-03-26 20 February 2014 External T.I. 2013-0480051E5 F - Eligible dividend and safe income Income Tax Act - Section 89 - Subsection 89(1) - General Rate Income Pool full amount of designated dividend reduces payor's GRIP even though recipient's GRIP increased only by safe income portion
Income Tax Act - Section 89 - Subsection 89(14) eligible dividend designation treated as applying only to safe income portion of dividend
2014-03-19 3 March 2014 External T.I. 2014-0519071E5 F - Période de détention de 24 mois pour AAPE Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) 24-month test met where s. 85(2) and (3) reorganization before sale
30 January 2014 External T.I. 2013-0515761E5 F - Dividend received General Concepts - Payment & Receipt book entries merely record and do not establish that a dividend was paid
Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) book entries are ancillary and do not establish receipt
4 March 2014 External T.I. 2013-0491981E5 F - Soins à un conjoint inapte Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit personal care amounts received by a committee may be non-taxable
17 February 2014 External T.I. 2014-0517491E5 F - Bien de remplacement - usages multiples Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(b) rental property not a replacement property for mixed use property
2014-03-12 19 February 2014 External T.I. 2013-0500561E5 F - Payment to a subtrust for minor Income Tax Act - Section 104 - Subsection 104(18) exercise of discretion by family trust in favour of secondary infant trust
23 January 2014 External T.I. 2013-0515721E5 F - Deferred Salary Leave Plan Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) full-time employee cannot return on a part-time basis
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iii) can have a salary deferral period, then leave, then payback period
2014-03-05 4 December 2013 External T.I. 2012-0465891E5 F - Primes d'assurance / Premiums Income Tax Act - Section 15 - Subsection 15(1) insurance premium benefits qua shareholder
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) sub plan with only one employee of particular employer could be a group plan if benefits similar to those for employees in other sub plans
2014-02-26 7 February 2014 External T.I. 2014-0516921E5 F - Crédit et frais résiduels Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property lease/sale distinction established based on the legal relationship
Income Tax Act - Section 6 - Subsection 6(2) employer potentially can choose to prorate terminal credits or deficiencies (based on sale price on car lease termination relative to residual value) in applying formula
General Concepts - Substance lease characterized as lease unless its actual legal effects differ
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A lease under which lessee bore all risk implicitly treated as lease rather than purchase
23 December 2013 External T.I. 2013-0505481E5 F - Application des paragraphes 6(6) et 110.7(1) Income Tax Act - Section 110.7 - Subsection 110.7(1) interaction between ss. 6(6) and 110.7(1)(b)
Income Tax Act - Section 6 - Subsection 6(6) Treasury Board rates considered to be reasonable
2014-02-19 18 December 2013 External T.I. 2013-0511101E5 F - Substantial interest - Part VI.1 Income Tax Act - Section 191 - Subsection 191(3) creation of substantial interest through redemption of special voting shares
Income Tax Act - Section 248 - Subsection 248(1) - Disposition no disposition of shares that became voting by operation of law (due to cancellation of voting shares)
Income Tax Act - Section 249 - Subsection 249(4) voting rights shifted to 2nd trust with same trustees: no control change
Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) no acquisition of control where votes pass from trust to an estate with the same individuals as executors

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