Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-11-06 30 September 2013 External T.I. 2013-0505151E5 F - Biens de remplacement Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(b) rollover unavailable where replacement property leased for use in a different business of Opco lessee
26 September 2013 External T.I. 2013-0497101E5 F - Avantage imposable consenti par un actionnaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) gift made by shareholder-manager to corporate employee “not received … on a purely personal basis”
7 October 2013 Internal T.I. 2013-0504081I7 F - Interaction between 55(2) and 40(1)(a)(iii) Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) reserve available for s. 55(2) gain on purchase for cancellation of shares where redemption proceeds payable on an earnout basis
Income Tax Act - Section 55 - Subsection 55(2) s. 40(1)(a)(iii) reserve available where redemption proceeds payable on earnout basis
General Concepts - Payment & Receipt distinction between promissory note as conditional or absolute payment
19 September 2013 External T.I. 2013-0498331E5 F - Catégories 29 et 50 Income Tax Regulations - Schedules - Schedule II - Class 50 post-February 2011 computer equipment includible in Class 50
2013-10-30 25 September 2013 External T.I. 2013-0485751E5 F - Rescinding 45(2) election by a non-resident Income Tax Act - Section 116 - Subsection 116(3) s. 116(3) filing requirement counted from date of deemed disposition under s. 45(2)
Income Tax Act - Section 45 - Subsection 45(2) deemed dispositin on 1st day of revocation year triggers s. 116(3) filing
25 September 2013 External T.I. 2013-0497011E5 F - OETC - Qualifying period Income Tax Act - Section 122.3 - Subsection 122.3(1) related preparatory and sick leave periods can be included in qualifying period computation
2013-10-23 25 September 2013 External T.I. 2013-0488571E5 F - Repayment of a dividend General Concepts - Effective Date taxpayer generally cannot change his legal position through a subsequent board or shareholder resolution
Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) dividend declared cannot be nullified by subsequent board or shareholder resolution
2013-10-09 11 July 2013 External T.I. 2013-0490591E5 F - Montant pour une personne à charge Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) - Subparagraph 118(1)(b)(ii) conditions not satisfied where children did not live with non-supporting husband following separation
Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner can be in a conjugal relationship even if live in the same home for only half of each year
Income Tax Act - Section 2 - Subsection 2(1) sole fact of a non-resident having a conjugal relationship with a Canadian resident does not render him a resident
25 September 2013 External T.I. 2011-0428941E5 F - Transfer of Stock Options to Protective Trust Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) transfer out of protective trust before exercise
25 November 2012 Roundtable, 2013-0479401C6 F - Employés et Achat Ltée – commentaires panel ARC Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) Buyco that is formed by employer to purchases departing employees’ shares is NAL
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) generally a deemed dividend on repurchase of departing employees’ shares by employer-funded Buyco
2013-10-02 25 September 2013 External T.I. 2013-0477571E5 F - Partnership - fin. fees and mng fees Income Tax Regulations - Regulation 402 - Subsection 402(7) service performed by service to partnership must have been previously performed by a partnership employee and relate to a short-term task
8 July 2013 Internal T.I. 2012-0434991I7 F - Déductibilité d'une perte Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) ordinary business requirement looks to the presence of an organized and continuous system
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii)
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) per jurisprudence on guarantees, taxpayer’s reason for assuming an obligation (to protect an interest-bearing investment) must be examined
6 May 2009 External T.I. 2008-0295581E5 F - Bourses et aide financière aux médecins Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) specialized training grants made to unlicensed medical residents to encourage them to settle in remote areas were s. 56(1)(n) fellowships
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) s. 12(1)(x) inclusion of assistance to foreign doctors to become licensed so that they will practise in a remote area
18 September 2013 External T.I. 2012-0462061E5 F - Amount included in the income of the annuitant Income Tax Act - Section 146 - Subsection 146(8.3) no application of s. 148(8.3) where excluded withdrawal followed by contribution and withdrawal from own RRSP
10 April 2013 Internal T.I. 2013-0475991I7 F - Montant- période de raccordement Income Tax Act - Section 5 - Subsection 5(1) terminated employee treated as continuing to be an employee due to employer’s continued treatment as an employee for EI, CPP and RPP purposes
8 July 2013 Internal T.I. 2012-0472651I7 F - Crédit pour l'embauche par les petites entreprises Income Tax Act - Section 9 - Exempt Receipts/Business small business job credit received for payroll of non-business employees, exempt
Income Tax Act - Section 118.2 - Subsection 118.2(3) - Paragraph 118.2(3)(b) small business job credit received for personal-care workers was “reimbursement”
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(b.1) single service does not qualify as attendant care
4 September 2013 Internal T.I. 2013-0497401I7 F - Remboursement partiel de frais d'abonnement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) generally a taxable benefit where reimbursement of fitness centre membership fees
28 August 2013 Internal T.I. 2013-0496861I7 F - Allocation de résidence pour les juges Income Tax Act - Section 6 - Subsection 6(6) exemption was potentially available for a housing allowance received by a Chief Justice or Associate Chief Justice under a temporary appointment
4 September 2013 External T.I. 2013-0490631E5 F - Éoliennes d'Essai  Income Tax Regulations - Regulation 1219 - Subsection 1219(3) opinion on test wind turbines installed on wind farm
2013-09-25 5 October 2012 Roundtable, 2012-0453231C6 F - Creditor's Group Life Insurance and CDA Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) - Subparagraph (d)(ii) Innovative case extended to individual policy: credit to borrowing CCPC’s CDA
2013-09-11 6 August 2013 External T.I. 2012-0469481E5 F - Benefit under trust Income Tax Act - 101-110 - Section 105 - Subsection 105(1) taxable benefit on sale to beneficiary at undervalue was not eliminated under s. 105(1)(a) when beneficiary sold the property
Income Tax Act - Section 52 - Subsection 52(1) benefit on estate sale to beneficiary at under-value added to property's ACB
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) taxable benefit added to acb
5 July 2013 Internal T.I. 2013-0489821I7 F - Application of subsection 18(3.1) Income Tax Act - Section 18 - Subsection 18(3.1) realty taxes or premiums related to land which is renovation object are capitalized
23 May 2013 Internal T.I. 2013-0481651I7 F - Attribution rules- business loss Income Tax Act - Section 75 - Subsection 75(2) losses from adventure in nature of trade not attributed under s. 75(2)
13 August 2013 External T.I. 2012-0471401E5 F - FMV - partnership interest General Concepts - Fair Market Value - Other deferred tax liability re deferred (s. 34) partnership income recognition reduces partnership interest FMV
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(c) FMV of professional partnership interest would normally discount the value of s. 34-elected WIP for income taxes
Income Tax Act - Section 34 FMV of partnership interest reduced re deferred income taxes on WIP subject to s. 34 election

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