Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-11-27 11 October 2013 Roundtable, 2013-0495281C6 F - Question 9 - APFF Round Table Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(q) direct transfer to RRIF of surviving non-resident spouse
29 October 2013 External T.I. 2013-0489771E5 F - Internal Reorganization - 55(3)(a) Income Tax Act - Section 248 - Subsection 248(10) estate distribution of corporation followed by transfer of assets from related corporation could be part of same series
Income Tax Act - Section 55 - Subsection 55(3.2) - Paragraph 55(3.2)(d) s. 55(3.2)(d) application to estate distribution of corporation to 3 sibling beneficiaries does not deem them to be related to each other
Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(v) relief under s. s. 256(7)(a)(i)(C) or (D) is relevant to s. 55(3.1)(b)(ii), but not to ss. 55(3)(a)(i) to (v)
11 October 2013 APFF Roundtable, 2013-0493651C6 F - Affiliated persons and de facto control Income Tax Act - Section 256 - Subsection 256(5.1) holding of relatively large note where debtor has a iliquid business could give rise to de facto control
Income Tax Act - Section 40 - Subsection 40(3.61) exception unavailable for inter vivos trust
11 October 2013 APFF Roundtable, 2013-0495781C6 F - GRIP Exceeds Safe Income Income Tax Act - Section 89 - Subsection 89(1) - Excessive Eligible Dividend Designation detailed review required to determine whether creation of preferred share dividend to flow out GRIP in excess of SIOH generatd EEDD
11 October 2013 APFF Roundtable, 2013-0495861C6 F - Question 20 - APFF Round Table Income Tax Act - Section 248 - Subsection 248(1) - Specified Member specified member status determined re involvement in daily management or activities
Income Tax Act - Section 40 - Subsection 40(3.14) - Paragraph 40(3.14)(a) not a limited partner if unlimited liability to third parties
11 October 2013 APFF Roundtable, 2013-0492791C6 F - Gift by will Income Tax Act - Section 118.1 - Subsection 118.1(5) potential executor discretion re corporate/estate split of gift might preclude as "gift"
11 October 2013 APFF Roundtable, 2013-0495721C6 F - APFF 2013- Round table question 7 Income Tax Act - Section 75 - Subsection 75(2) Sommerer FMV sale exception maintained with price adjustment clause
General Concepts - Fair Market Value - Shares FMV is a question of fact within TCC's discretion
11 October 2013 APFF Roundtable, 2013-0493671C6 F - Testamentary trust beneficiary of inter vivos trust Income Tax Act - Section 108 - Subsection 108(1) - Testamentary Trust testamentary trust will lose its status if it is designated as the beneficiary of an inter vivos trust
2013-11-20 7 October 2013 External T.I. 2013-0500941E5 F - Actif utilisé dans une entreprise active Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share rental property of partnership leased as to 15% to an active business partner did not qualify as active business asset
11 October 2013 Roundtable, 2013-0493701C6 F - Amount paid or credited - Reg. 202 Income Tax Regulations - Regulation 202 - Regulation 202(1) - Paragraph 202(1)(b) accounting method used by recipient does not affect which items are reported on NR4
5 November 2013 External T.I. 2013-0501241E5 F - Application of subsection 39(2) Income Tax Act - Section 39 - Subsection 39(2) declared dividend is a debt to which s. 39(2) applies
Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract dividend becomes debt when declared
23 September 2013 Internal T.I. 2012-0471531I7 F - Non-profit organization Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) taxable member of an NPO can make loans at interest to it and receive repayment of the loan on the NPO’s winding-up
2013-11-13 11 October 2013 Roundtable, 2013-0492821C6 F - Question 3 - APFF Round Table Treaties - Income Tax Conventions - Article 4 s. 94 trusts were resident in Canada for Treaty purposes even before Income Tax Conventions Interpretation Act amendment, which precludes application of tie-breaker
Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 4.3 s. 4.3 precludes application of tie-breaker rule
11 October 2013 Roundtable, 2013-0495901C6 F - Limited partnership loss and non-capital loss Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss non-capital loss is not increased by amount otherwise deductible under s. 111(1)(e)
11 October 2013 Roundtable, 2013-0495741C6 F - Dividend received by an employee trust Income Tax Act - Section 104 - Subsection 104(19) s. 104(19) designation unavailable for employee trust or employee benefit trust
11 October 2013 Roundtable, 2013-0495891C6 F - Partnership's capital gains allocation - CGE Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) capital gains from CGD-eligible property are separately allocated to partner
25 September 2013 Internal T.I. 2013-0476311I7 F - 93(2), 93(2.01) - Share substituted Income Tax Act - Section 248 - Subsection 248(5) s. 248(5) requirement for a legal exchange is engaged by a reference to a substituted share
Income Tax Act - Section 93 - Subsection 93(2.01) concept of substituted share in s. 93(2.01) is subject to the exchanged-for limitation in s. 248(5)(a)
11 October 2013 Roundtable, 2013-0495271C6 F - Flow-through shares and death Income Tax Act - Section 66 - Subsection 66(12.6) renunciation must take effect before the death of the deceased and is unavailable to estate
Income Tax Act - Section 66 - Subsection 66(12.66) lookback unavailable where taxpayer was deceased on December 31 of look-back year
11 October 2013 Roundtable, 2013-0495911C6 F - Insurable employment Other Legislation/Constitution - Federal - Employment Insurance Act - Section 5 - Subsection 5(2) - Paragraph 5(2)(b) employment by employees of partnership of corporations is treated as joint employment by those corporations
Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) partners treated as employers of partnership employees
11 October 2013 APFF Roundtable, 2013-0495751C6 F - Time of an Acquisition of Control Income Tax Act - Section 256 - Subsection 256(9) s. 256(9) does not permit the parties to elect as to the actual time of acquisition of control
11 October 2013 APFF Roundtable, 2013-0493691C6 F - Transfer of a Foreign Retirement Arrangement Income Tax Act - Section 60.01 2 transfers of IRAs or 401(k) would not be a series of periodic payments
11 October 2013 APFF Roundtable, 2013-0495821C6 F - Share disposition Income Tax Act - Section 248 - Subsection 248(1) - Disposition no disposition where shares exchanged for identical-attribute shares of a different class
Income Tax Act - Section 85 - Subsection 85(1) shares in different class with identical attributes are the same shares
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)

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