Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-02-06 5 October 2012 Roundtable, 2012-0453191C6 F - Investissements frauduleux Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) Earl Jones case was “exceptional”: prior years’ returns generally cannot be amended to exclude fictitious income
15 November 2012 External T.I. 2012-0461291E5 F - Frais judiciaires pour clarifier une servitude Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) costs of preventing an expanded easement on land were not a disposition expense
Income Tax Act - Section 54 - Adjusted Cost Base no comment on whether legal costs to avoid expanded easement were ACB addition
5 October 2012 Roundtable, 2012-0454201C6 F - Nouvelle Circulaire - Prix transfert international Income Tax Act - Section 247 - New - Subsection 247(2) 2010 OECD Guidelines to be reflected in revised Transfer Pricing Memorandum – not revised IC 87R2
20 November 2012 External T.I. 2012-0463191E5 F - Acquisition - personne ayant lien de dépendance Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) increased recapture as a result of previous application of s. 13(7)(e)(i) to acquisition of building from son
5 October 2012 Roundtable, 2012-0454221C6 F - Allocation des risques et contrôle Income Tax Act - Section 247 - New - Subsection 247(2) comment declined re whether Cdn parent bore most of US sub’s risk re operating losses
24 October 2012 Internal T.I. 2012-0456711I7 F - Inadmissibilité à la déduction pour GC Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) - Paragraph 110.6(7)(b) potential application of s. 110.6(7)(b) where s. 51(2) applied
Income Tax Act - Section 152 - Subsection 152(4.2) no retroactive adjustment of capital gains exemption where claimed before the normal reassessment period
Income Tax Act - Section 248 - Subsection 248(10) concept of a related transaction requires "more than a mere possibility"/ retrospective attachment of related transaction
5 October 2012 Roundtable, 2012-0454051C6 F - Déductibilité de cotisations - caisse de sécurité Income Tax Act - Section 20.01 - Subsection 20.01(1) qualifying contribution made to a PHSP by a self-employed professional via a professionals’ union
5 October 2012 Roundtable, 2012-0453911C6 F - Roulement à fiducie pour soi et faculté d'élire Income Tax Act - Section 73 - Subsection 73(1.02) - Paragraph 73(1.02)(b) - Subparagraph 73(1.02)(b)(ii) trust deed provision that the settlor by will may designate beneficiaries upon death breaches s. 73(1.02)(b)(ii)
15 November 2012 Internal T.I. 2012-0459321I7 F - Biens locatifs - frais de déplacement Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) notwithstanding the s. 18(1)(h) postamable limitation to business income, there is a circumscribed deduction for travel to and from single rental property
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose deductibility of travel expenses to manage rental properties partly turns on whether single or multiple locations
5 October 2012 APFF Roundtable, 2012-0454061C6 F - Transfer of a Lossco to a related corporation General Concepts - Fair Market Value - Shares non-capital losses of corporation taken into account in valuing its shares
Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) related but not affiliated transfer of Lossco shares to father's or brother's company
Income Tax Act - Section 50 - Subsection 50(1) lossco with no assets or liabilities cannot be insolvent
Income Tax Act - Section 88 - Subsection 88(1.1) lossco losses maintained on father-son or sibling transfers and s. 88(1.1) wind-up
5 October 2012 APFF Roundtable, 2012-0453591C6 F - Prêt à une fiducie Income Tax Act - Section 75 - Subsection 75(2) loan made to trust by sole trustee is not subject to s. 75(2) if not a contribution of capital
5 October 2012 APFF Roundtable, 2012-0454081C6 F - Statute-barred debt Income Tax Act - Section 80.01 - Subsection 80.01(9) question of fact whether a debt between related persons is extinguished upon the prescription period
5 October 2012 APFF Roundtable, 2012-0453211C6 F - Formulaire T1135 Income Tax Act - Section 162 - Subsection 162(7) CRA is not bound by Douglas
Income Tax Act - Section 220 - Subsection 220(3.1) criteria for waiver of penalties and interest
5 October 2012 APFF Roundtable, 2012-0454231C6 F - Garantie pour impôt de départ Income Tax Act - Section 220 - Subsection 220(4.5) CRA may accept shares of the CCPC shares generating departure tax and looks for a minimum 2:1 FMV/tax ratio
Income Tax Act - Section 220 - Subsection 220(4.53) partial redemption may not result in demand for payment of departure tax
5 October 2012 APFF Roundtable, 2012-0454241C6 F - Double imposition Income Tax Act - Section 160 - Subsection 160(2) ETA s. 325 assessment in same audit is issued after ITA s. 160 to avoid double tax/no priority accorded to ARQ
Excise Tax Act - Section 325 double taxation from contemporaneous ITA/ETA assessments avoided by ITA assessment being 1st
5 October 2012 APFF Roundtable, 2012-0453991C6 F - Action admissible de petite entreprise Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation Quebec partnership also transparent notwithstanding separate patrimony
2013-01-30 15 November 2012 External T.I. 2012-0456201E5 F - Frais médicaux - calcul et dépenses non admissibles Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(o) emergency call service through telemonitoring ineligible
Income Tax Regulations - Regulation 5700 - Section 5700 - Paragraph 5700(e) non-custom shoes would not qualify
Income Tax Act - Section 118.2 - Subsection 118.2(1) expenses that were incurred, paid for and receipted within same 12-month period cannot be deferred
5 October 2012 Roundtable, 2012-0453971C6 F - Fiducies successives/disposition 21 ans Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(b) - Subparagraph 104(4)(b)(ii) deemed retroactive date of formation per CCQ of child trusts as residuary testamentary beneficiaries of spousal trusts accelerated s. 104 deemed disposition date
5 October 2012 Roundtable, 2012-0454001C6 F - Travail d'un associé d'une société de personnes Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) number of employees not necessarily relevant to determining relative partner contribution
7 December 2012 External T.I. 2012-0440411E5 F - Performing services in Canada Income Tax Regulations - Regulation 104 - Subsection 104(2) non-resident programmer who comes to Canada only occasionally and is connected to the Quebec server does not exercise a Canadian employment
5 October 2012 APFF Roundtable, 2012-0451281C6 F - Usufruit étranger Income Tax Act - Section 248 - Subsection 248(1) - Disposition whether the formation of a usufruct under overseas law triggers a disposition turns on such law
Income Tax Act - Section 248 - Subsection 248(3) French usufruct does not create a trust
2013-01-23 22 November 2012 External T.I. 2012-0468941E5 F - TFSA - XXXXXXXXXX employee working outside Canada Income Tax Act - Section 207.01 - Subsection 207.01(1) - Unused TFSA Contribution Room room is not generated while a non-resident
4 December 2012 External T.I. 2012-0470951E5 F - Technical News no. 11 Income Tax Act - 101-110 - Section 105 - Subsection 105(1) no benefit where use of personal-use property of trust extends to an individual related to a trust beneficiary
11 December 2012 External T.I. 2011-0423441E5 F - Options d'achat d'actions et décès Income Tax Act - 101-110 - Section 110 - Subsection 110(1.1) no 110(1)(d) deduction available for deemed s. 7 benefit on death
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) cost to estate of employee stock options determined under s. 69(1)(c)
26 November 2012 External T.I. 2012-0432831E5 F - Dépenses - Immeuble locatif Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on mortgage on personal residence deductible if proceeds used to acquire rental property (until change in use)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense major repairs required to be capitalized

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