Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-03-13 8 February 2013 External T.I. 2012-0464131E5 F - Transfert de propriété Income Tax Act - Section 248 - Subsection 248(1) - Disposition determination of disposition date is assisted by IT-170R
2013-03-06 19 December 2012 External T.I. 2012-0468511E5 F - GRIP addition for 2006 Income Tax Act - Section 89 - Subsection 89(7) - Element A no adjustment made for dividend received from connected CCPC sold over 4 years before 2006
2013-02-27 30 January 2013 External T.I. 2012-0449621E5 F - Belgian pension Treaties - Income Tax Conventions - Article 18 Belgian social security payment received by Canadan resident must be included in the personal return, but with offsetting s 110(1)(f)(i) deduction claimed
Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(i) Treaty-exempt receipt required to be reported, but with offsetting s 110(1)(f)(i) deduction
2013-02-20 15 January 2013 Internal T.I. 2012-0459581I7 F - 163(2) Penalty - CCTB and GSTC Income Tax Act - Section 163 - Subsection 163(2) - Paragraph 163(2)(c) penalty applied to both spouses even though only one received an overpayment of the CCTB and GSTC
5 February 2013 External T.I. 2012-0465591E5 F - Form T5018 Income Tax Regulations - Regulation 238 - Subsection 238(1) landscaping business could be construction
6 December 2012 External T.I. 2012-0463431E5 F - Application of subparagraph 40(2)(g)(ii) Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) loss on non-interest-bearing loan to sister did not come within IT-239R2, para. 6
14 January 2013 External T.I. 2012-0443561E5 F - Part XIII re: royalties paid for tv program Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) payments based on production costs of a television program were a royalty
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) payments based on TV production costs came within s. 212(1)(d)(i)
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) copyright exception applicable to use of TV format in producing a Canadianized TV production
5 December 2012 Internal T.I. 2012-0439301I7 F - Reassessment beyond the normal reassessment period Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) s. 17 assessment of loan made by Canco to non-resident LP was re a transaction with the non-resident partners for s. 152(4)(a)(iii) purposes
Income Tax Act - Section 96 partnership lacks power to contract debts
13 February 2013 External T.I. 2013-0477151E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(2) given 2012 disruptions, months to be computed based on the original schedule
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

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