Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-06-19 25 April 2013 Internal T.I. 2013-0478511I7 F - Distribution à un commanditaire Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate real estate capital gains flowed through to limited partner retained character
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) allocated capital gains retained their character unless re services performed by partner in course of separate business
Excise Tax Act - Section 272.1 - Subsection 272.1(1) distinction between return on partnership investment and services rendered by partner in the course of a separate business
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) services rendered by limited partner to LP gave rise to ACB increase if no s. 9 income inclusion for fee income
7 May 2013 External T.I. 2013-0481321E5 F - Logement sécurisé - travail de nature temporaire Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) payment of rents by a foreign employer at a secure compound in another country could qualify except for after when employment ceased
2013-06-12 20 March 2013 External T.I. 2012-0442571E5 F - Coût d'acquisition d'un terrain Income Tax Regulations - Schedules - Schedule II - Class 8 cost of water and sewer lines connecting mobile home units, included in Class 8
Income Tax Act - Section 54 - Adjusted Cost Base cost of land acquired from developer equal to total barter value minus amounts allocated to Classes 8 and 17
14 February 2013 Internal T.I. 2011-0424341I7 F - Amounts forwarded to trustee/beneficiary Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) not applicable to dividends on common shares issued to discretionary family trust on estate freeze
Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) did not apply to trustee/beneficiary of discretionary trust who directed income to her children and did not exercise discretion in her own favour
Income Tax Act - Section 104 - Subsection 104(13) income was received by children beneficiaries as agent for their mother
Income Tax Act - Section 104 - Subsection 104(6) - Paragraph 104(6)(b) Quebec discretionary trust with two named trustees but, in fact, only one trustee, would not be entitled to s. 104(6)(b) deductions
14 May 2013 External T.I. 2012-0469591E5 F - Capital dividend received by a trust and CDA Income Tax Act - Section 104 - Subsection 104(20) no recognition of capital dividend by corporate beneficiary where received by trust in Year 1 and distributed in Year 2
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (g) no addition for capital dividend received by trust in Year 1 and distributed in Year 2 to corporate beneficiary
24 April 2013 External T.I. 2013-0476561E5 F - Coûts de drainage de terre agricole Income Tax Act - Section 30 costs of installing drainage tile deductible by tenant farmer, not lessor
9 January 2013 External T.I. 2010-0384221E5 F - Paiements indirects Income Tax Act - Section 56 - Subsection 56(2) payments rquired to be made by a collective agreement were not intended as redirected income
31 May 2013 External T.I. 2013-0480431E5 F - Deduction from business investment loss Income Tax Act - Section 39 - Subsection 39(10) capital gains deduction previously claimed by individual re capital gain allocated by trust reduced BIL subsequently realized by each of individual and trust
10 May 2013 External T.I. 2012-0442791E5 F - SENC - Revenu d'entreprise exploitée activement Income Tax Act - Section 129 - Subsection 129(6) Norco applied to rent paid by Opco to partnership between Opco's Holdco and Holdco's shareholder's brother
2 May 2013 External T.I. 2013-0481361E5 F - Ordre de disposition d'actions AAPE Income Tax Act - 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

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