Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-05-15 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
General Concepts - Effective Date deemed dividend through operation of price adjustment clause arises in the adjustment rather than redemption year
20 March 2013 Internal T.I. 2013-0480201I7 F - Montants forfaitaires - XXXXXXXXXX Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(d) amounts paid to workers in wage-discrimination suit that were in excess of reasonable amount for rights’ violations or non-pecuniary damages would be employment income
Income Tax Act - 101-110 - Section 110.2 - Subsection 110.2(1) - Qualifying Amount portion of wage discrimination award that related to loss of salary (based on days’ worked) would be qualifying amount
2013-04-17 27 March 2013 External T.I. 2012-0449661E5 F - Subparagraph 53(2)(c) ITA Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) effect of ss. 40(3.4) and 112(3.1) on partnership ACB where dividends paid to partnership before share disposition was currently under audit
2013-04-10 18 February 2013 Internal T.I. 2013-0477821I7 F - Montants forfaitaires - XXXXXXXXXX Income Tax Act - Section 3 damages received in wage discrimination suit for pain and suffering were non-taxable
2013-03-27 11 March 2013 External T.I. 2012-0432201E5 F - Payment of tax by an institute Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(a) application of testamentary trust rules to a substitution by testament
Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (d) spousal beneficiary of substitution by testament does not taint the resulting deemed testamentary trust by paying the trust taxes
21 February 2013 External T.I. 2012-0465711E5 F - Attribution Rules after Divorce Income Tax Act - Section 74.2 - Subsection 74.2(1) entire rather than only pro rata portion of a post-divorce capital gain is not subject to attribution
2013-03-20 5 December 2012 Internal T.I. 2012-0451331I7 F - Déductibilité de frais juridiques Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal expenses incurred to minimize responsibility under guarantee were not connected to operations which were necessary or incidental to the earning of income
Income Tax Act - Section 60 - Paragraph 60(o) sales tax disputes not covered; expenses start running from audit review
31 January 2013 Internal T.I. 2012-0466641I7 F - Réduction du coût en capital d'un bien Income Tax Act - Section 13 - Subsection 13(7.1) reduction for Quebec M&P ITC occurs in year following incurring of the eligible expenses
19 December 2012 External T.I. 2011-0425581E5 F - CII - régions admissibles-Montérégie-Rive-Sud Income Tax Act - Section 127 - Subsection 127(9) - Specified Percentage description of qualifying ITC regions (which exclude Montérégie South Shore)
24 October 2012 External T.I. 2012-0443721E5 F - Compensation - vente d'un immeuble Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Damages taxpayer need not have attempted to prevent the act or omission resulting in the damages
20 February 2013 External T.I. 2012-0473051E5 F - Frais de gestion versés à un conjoint Income Tax Act - Section 67 determining reasonableness of spousal management fee entails a “comparison to an amount paid for similar services according to industry standards”
27 November 2012 External T.I. 2012-0445941E5 F - Action déterminée de petite entreprise Income Tax Act - Section 44.1 - Subsection 44.1(1) - Qualifying Disposition shares issued to a family trust do not qualify as "eligible small business corporation shares"
25 February 2013 Internal T.I. 2012-0440371I7 F - Changement d'usage - Duplex Income Tax Act - Section 45 - Subsection 45(3) s. 45(3) election unavailable for partial change of use (duplex going from 50% to 100% personal use)
5 July 2012 Internal T.I. 2010-0388551I7 F - Fiducie - retour de sommes Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) does not apply to an estate freeze as the corp does not own its treasury shares issued to the trust
Income Tax Act - 101-110 - Section 105 - Subsection 105(1) income distributed to daughter-in-law who in fact was not a beneficiary includible in her income under s. 105(1) but not deductible by trust under s. 104(6)
Income Tax Act - 101-110 - Section 104 - Subsection 104(13) capital gain distributed by family trust to children and purportedly lent by them to their parents (also beneficiaries) was instead included in the parents’ income under s. 104(13)
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(6) Foisy test of mental element accepted
11 February 2013 External T.I. 2012-0469441E5 F - Aire de plancher - fabrication et transformation Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(a.1) washrooms and cafeteria included - along with office if a connection with the M&P personnel
25 September 2012 Internal T.I. 2011-0409281I7 F - Papier commercial - Obligations XXXXXXXXXX Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss compensating clients for half their loss was currently deducible, whereas purchasing securities at original cost was its cost

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