Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2023-01-18 7 October 2022 APFF Roundtable Q. 13, 2022-0942181C6 F - Transfer of an RRSP at death Income Tax Act - Section 248 - Subsection 248(23.1) - Paragraph 248(23.1)(a) s. 248(23.1)(a) does not deem the amount paid to be received as beneficiary of the estate as per s. 146(8.1)
Income Tax Act - Section 146 - Subsection 146(8.1) an amount paid by an estate of the deceased’s RRSP to satisfy the claim of his separated surviving spouse did not qualify as a refund of premiums
7 October 2022 APFF Roundtable Q. 14, 2022-0942191C6 F - Safe-income determination time Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time incorporation of Buyco may trigger safe-income determination time
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) no need for CRA flexibility regarding safe income issues arising from early formation of a Buyco
Income Tax Act - Section 248 - Subsection 248(10) safe income arising on a sale and after the safe-income determination time could be used for subsequent dividends not paid as part of the same series
7 October 2022 APFF Roundtable Q. 15, 2022-0942241C6 F - Safe income inclusion of dividend tax refund Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) taxes reduce safe income attributable to realized taxable capital gain net of the refundable tax generated from dividend
2023-01-11 2021 Ruling 2020-0852541R3 F - Split-up XXXXXXXXXX Butterfly Income Tax Act - Section 55 - Subsection 55(1) - Distribution one-wing split-up butterfly with a preliminary cash distribution of life insurance proceeds
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) resolution of Part IV tax circularity issue on butterfly to be resolved by local TSO
2022-12-21 7 December 2022 External T.I. 2020-0846891E5 F - SSUC - Revenu admissible Income Tax Act - Section 125.7 - Subsection 125.7(7) limited partner’s share of LP revenues cannot be qualifying revenue
12 December 2022 External T.I. 2021-0878941E5 F - SSUC - Revenu admissible Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Revenue partner’s share of qualifying revenue is not qualifying revenue
2022-11-30 2022 Ruling 2022-0930901R3 F - Changes to an existing monetization arrangement Income Tax Act - Section 80.6 partial acceleration of a forward contract did not de-grandfather it from the synthetic disposition rules
2022-11-16 2022 Ruling 2021-0904611R3 F - Corporate reorganization and trust to trust transfer Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (f) para. (f) applicable to transfer of shares for no consideration to new trust for same incapacitated minor beneficiary
Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Trust - Paragraph (g) interests in inter vivos trust were vested indefeasibly in its minor beneficiary with special needs
2021 Ruling 2021-0907591R3 F - Post-mortem Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline transactions (coupled with s. 88(1)(d) bump) for which the deceased had claimed a capital gains deduction
Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) - Subparagraph 84.1(2)(a.1)(ii) promissory notes issued on pipeline limited by previous s. 110.6(2.1) deduction
2022-11-09 18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii) rendering of an empty shell suitable for manufacturing constituted substantially changing its nature
Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b) property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A cost of installing property part of that property’s cost
Income Tax Regulations - Regulation 1102 - Subsection 1102(4) to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property
General Concepts - Ownership leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise
Income Tax Regulations - Regulation 1102 - Subsection 1102(5) building shell was a building or structure/ addition refers to extension of structure
2021 Ruling 2021-0916821R3 F - Continuance corporation from CBCA to Co-operative Income Tax Act - Section 86 - Subsection 86(1) application of s. 86 reorganization rule to a continuance from the CBCA to a Co-operatives Act
Income Tax Act - Section 248 - Subsection 248(1) - Disposition continuance from the CBCA to a Co-operatives Act did not entail disposition of assets, but s. 86 applied at the shareholder level
2022-11-02 2022 Ruling 2022-0925601R3 F - Post-mortem Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline accomplished through the Newco purchaser issuing 8 instalment notes to the estate as a PUC reduction
2022-10-26 10 January 2022 External T.I. 2020-0873921E5 F - SUCL- Assurance responsabilité civile Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Rent Expense - Variable A - Paragraph (b) - Subparagraph (b)(ii) qualifying rent expense did not include third-party liability insurance premiums
2021 Ruling 2021-0877011R3 - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) note issued on post-mortem pipeline effected on portfolio company paid off over 3 years commencing 1 year after transfer by estate to Newco
5 August 2022 External T.I. 2021-0877051E5 F - TOSI and excluded amount Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business 2nd generation income not derived from business/ interest received from company employing sibling a related business/ ownership test in (c) may be satisfied through a family trust
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (c) test not satisfied due to interest from company employing a sibling
2022-10-12 2021 Ruling 2021-0895071R3 F - Partnership Reorganization Income Tax Act - Section 98 - Subsection 98(3) conversion of a carry to a straight-up interest
Income Tax Act - Section 40 - Subsection 40(3.3) refusal to rule where shares received on LP s. 98(3) wind-up immediately sold to Carry LP owned by owners of former general partner
Income Tax Act - Section 40 - Subsection 40(3.12) no s. 40(3.12) ruling given re loss on fund LP wind-up
2022-08-31 2021 Ruling 2021-0895631R3 - Post-mortem planning - Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) 2-year pipeline transactions
Income Tax Act - Section 40 - Subsection 40(3.61) no stop-loss for s. 164(6) loss realized by estate before pipeline transactions
2022-07-13 10 February 2022 External T.I. 2021-0912581E5 F - Borrowing to make interest-free loans Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest-free loans by a limited partner to the LP, or to wholly-owned subs which directly or indirectly hold such LP, can be a good s. 20(1)(c)(i) current use
2022-07-06 25 February 2022 External T.I. 2020-0873761E5 F - Shareholder loan Income Tax Act - Section 15 - Subsection 15(2) s. 15(2) applies separately to accrued and unpaid interest on shareholder loan
Income Tax Act - Section 80.4 - Subsection 80.4(3) - Paragraph 80.4(3)(b) s. 80.4(2) does not apply to accrued and unpaid interest on a loan
Income Tax Act - Section 15 - Subsection 15(2.6) s. 15(2) applies separately to accrued and unpaid interest on a shareholder loan, but s. 80.4(2) does not apply to such interest
2022-06-15 2021 Ruling 2021-0880641R3 F - Changes to existing monetization arrangements Income Tax Act - Section 80.6 - Subsection 80.6(1) substituting the index used in a monetization arrangement did not de-grandfather it from the synthetic disposition rules
General Concepts - Transitional Provisions and Policies agreement novation likely would lose grandfathering
30 March 2022 External T.I. 2017-0737181E5 F - Right to receive income from a trust Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) clause suspending the right to income on bankruptcy would not satisfy s. 73(1.01)(c)(ii)

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