Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-06-12 2 May 2013 External T.I. 2013-0481361E5 F - Ordre de disposition d'actions AAPE Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(a) FIFO method is applied to determine which of ideintical shares were disposed of first
2013-06-05 12 February 2013 Internal T.I. 2012-0437211I7 F - NRT rules and subsection 164(6) Income Tax Act - Section 164 - Subsection 164(6) s. 94 deemed resident trust could carry back under s. 164(6) re capital loss on non-TCP shares
Income Tax Act - Section 54 - Personal-Use Property personal residence of deceased potentially would not be personal-use property to estate
Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(a) estate of resident deceased with one resident beneficiary was subject to s. 94(3)
2013-05-29 17 April 2013 External T.I. 2012-0457011E5 F - Coop Shares in RRSP and Prohibited Invest. Rules Income Tax Act - Section 207.01 - Subsection 207.01(1) - Excluded Property - Paragraph (c) shares can become prohibited investments as a result of other shareholders dispose of their shares
Income Tax Act - Section 207.04 - Subsection 207.04(4) dispositions that generate the refund are not limited to redemptions of the shares
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (c) advantage tax on net capital gains and income of RRSP from cooperative shares
2013-05-15 23 November 2012 External T.I. 2012-0449101E5 F - Production exclue - CIPCMC Income Tax Regulations - Regulation 1106 - Subsection 1106(1) - Excluded Production - Paragraph (a) - Subparagraph (a)(iii) - Clause (a)(iii)(A) 5-year test was violated when successor to production company became controlled by an unrelated person
6 December 2012 External T.I. 2012-0461711E5 F - Paiements indirects / Indirect payments Income Tax Act - Section 56 - Subsection 56(2) 56(2) inapplicable to incorporated artist respecting producer paying mandatory contributions to the fund for the artist’s union
Income Tax Regulations - Regulation 200 - Subsection 200(1) no T4A slip to be issued by producer paying mandatory contributions to the fund for the union of the artist whose corporation receives fees from the producer
13 February 2013 External T.I. 2011-0430921E5 F - S. 261 - Loss carry-back & loss carry-forward Income Tax Act - Section 261 - Subsection 261(12) conversion to U.S. dollar and back again changed non-capital losses
Income Tax Act - Section 261 - Subsection 261(15) carryback of non-capital loss following revocation of functional currency election to functional currency year
18 April 2013 Internal T.I. 2013-0485481I7 F - Balance of sale price without interest Income Tax Act - Section 16 - Subsection 16(1) s. 16(1) inapplicable if sale price including non-interest bearing balance does not exceed sold assets’ FMV
20 March 2013 Internal T.I. 2012-0463181I7 F - Revenu des entrepreneurs Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) completion method unavailable for communication and electricity structure installations
2 April 2013 External T.I. 2013-0478221E5 F - CIAPH - acquisition pour une somme nominale Income Tax Act - Section 118.05 - Subsection 118.05(3) purchase for nominal consideration still generates the credit
13 September 2012 Internal T.I. 2012-0442671I7 F - Dédommagement pour la perte de bénéfices Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) damages received after 2011 by employees of an insolvent company for cancellation of their medical plan have become taxable
Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit damages received for loss of life insurance coverage were not rendered a death benefit under the surrogatum principle
Income Tax Act - Section 6 - Subsection 6(3) damages received by former employees of insolvent company for cancellation of their life insurance coverage were received in lieu of remuneration for their employment services
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) legal fees paid to recover damages for employer cancellation of insurance coverage, and medical plan, qualified and did not qualify, respectively
21 January 2013 Internal T.I. 2012-0442021I7 F - Assessing 163(2) penalty Income Tax Act - Section 163 - Subsection 163(2) - Paragraph 163(2)(c.2) penalty is computed on total RMES adjustment, not just the false portion
Income Tax Act - Section 163 - Subsection 163(2) - Paragraph 163(2)(c) false RMES claim by husband does not generate any penalty for resulting overstatement of CCTB, WITB and GSTC by wife, assuming she made no false statement
Income Tax Act - Section 163 - Subsection 163(2) - Paragraph 163(2)(a) - Subparagraph 163(2)(a)(i) deduction against increase to income attributable to a false statement can be reduced by QPP contribution increase or by discretionary CCA claim that is wholly related to that income source
19 March 2013 External T.I. 2012-0444001E5 F - Dépenses d'adoption lors de démarches abandonnées Income Tax Act - Section 118.01 - Subsection 118.01(1) - Eligible Adoption Expense expenses must be incurred in relation to successfully-adopted child
5 April 2013 External T.I. 2012-0471151E5 F - Binding Agreement Income Tax Act - Section 9 - Computation of Profit side letter would not reduce owner’s entitlement to rents from property if not entered into at same time as property acquisition
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense counter letter payments non-deductible because Quebec counter letter entered into after apparent letter
11 March 2013 External T.I. 2012-0469231E5 F - Deferred terminal loss Income Tax Act - Section 13 - Subsection 13(21.2) notional properties fall in same class so that losses suspended until triggering events for all properties/ordering of dispositions to affiliated and unaffiliated transferees generally not relevant
Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) s. 13(21.1)(a) adjusts the proceeds as determined under s. 85
28 March 2013 External T.I. 2012-0460481E5 F - Allocation pour usage d'un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) fixed allowance of $4.60 for each trip under 10 kilometres deemed unreasonable
28 March 2013 External T.I. 2012-0460031E5 F - Prime pour partager chambre à deux Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) allowance paid by 3rd-party customer to employees re double-occupancy rooms was taxable
Income Tax Regulations - Regulation 200 - Subsection 200(1) T4As to be issued by employer for allowance paid by 3rd-party customer to employees
2013-05-01 16 April 2013 External T.I. 2013-0477981E5 F - Interpretation of Gift Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts ability to opt out of a compulsory contribution to an employer-aligned charity would not necessarily establish a “gift”/Quebec “gift” is CCQ “donation”
16 April 2013 External T.I. 2013-0480831E5 F - Frais médicaux - chirurgie esthétique Income Tax Act - Section 118.2 - Subsection 118.2(2.1) skin removal following bariatric surgery may qualify
2013-04-24 13 March 2013 External T.I. 2012-0473291E5 F - Société de personnes - maison détruite par le feu Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) partner can use the principal residence exemption re gain allocated by partnership from disposition of personally-used principal residence, including following s. 44 deferral
Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) replacement property generally is expected to have the same material characteristics
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(c) s. 40(2)(c) unavailable re disposition of building only from fire
2 April 2013 External T.I. 2012-0470591E5 F - Sale of automobile acquired after being leased Income Tax Act - Section 13 - Subsection 13(5.2) - Paragraph 13(5.2)(b) the deemed s. 13(5.2)(b) cost addition is recognized for s. 13(2) purposes
Income Tax Act - Section 13 - Subsection 13(5.2) s. 13(5.2)(b) addition must be taken into account for s. 13(2) purposes, including re no recapture
5 October 2012 Roundtable, 2012-0453121C6 F - Fiducie au conjoint-police d'assurance-vie Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) no tainting of spousal trust if policy transferred to it no longer has premiums to be paid
14 January 2013 External T.I. 2012-0469571E5 F - Settlement of rights arising out of marriage Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) transfer of appreciated property by recipient of court-ordered support to the payer of support qualified for rollover
29 November 2011 Roundtable, 2011-0426361C6 F - Price adjustment clause and redemption of shares Income Tax Act - Section 84 - Subsection 84(3) deemed dividend arising from preferred share price adjustment clause arises in the year of actual payment

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