Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-12-24 5 October 2012 Roundtable, 2012-0451291C6 F - Subsection 85(1) and UMIR Marketplace Rules Income Tax Act - Section 85 - Subsection 85(1) s. 85(1) not available where shares transferred to holding company through the exchange
5 October 2012 Roundtable, 2012-0453941C6 F - Principal residence owned by a trust-exemption Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) status based on s. 248(25) application and actual habitation
Income Tax Act - Section 54 - Principal Residence - Paragraph (f) renunciation by specified beneficiaries immediately before sale would not affect para. (f) exclusion
5 October 2012 Roundtable, 2012-0453161C6 F - RRIF, prohibited investment, minimum amount Income Tax Act - Section 146.3 - Subsection 146.3(1) - Retirement Income Fund payout of transitional prohibited investment benefit may be taken into account as satisfying the minimum amount
5 October 2012 APFF Roundtable, 2012-0453891C6 F - Price Adjustment Clause General Concepts - Effective Date operation of freeze price adjustment clause depends on share actually being adjusted and can apply for s. 75(2) purposes
Income Tax Act - Section 75 - Subsection 75(2) price adjustment clause that is implemented potentially can prevent s. 75(2) application to estate freeze
5 October 2012 APFF Roundtable, 2012-0454171C6 F - Taxable Pref. Shares and Short-Term Pref. Shares Income Tax Act - Section 248 - Subsection 248(1) - Taxable Preferred Share - Paragraph (f) para. (f) tests applied at time of payment and receipt of dividend
2012-12-12 20 November 2012 External T.I. 2012-0440031E5 F - Quebec Tax Credit for Production of Performances Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) Québec Credit for the Production of Performances includible under ss. 12(1)(x)(iii) and (iv) rather than s. 9
2012-12-05 7 November 2012 External T.I. 2012-0437821E5 F - Registered Plan - Advantage Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) advantage from swap transaction includes 100% of resulting value increase, income on transferred property and income on income
5 October 2012 APFF Roundtable, 2012-0454091C6 F - GRIP and deemed dividend pursuant to 84.1(1)(b) Income Tax Act - Section 89 - Subsection 89(14) s. 84.1 deemed dividend paid to an individual could be an eligible dividend notwithstanding him not being a shareholder of the payer
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) unnecessary in s. 89(14) for s. 84.1 to have deemed dividend to be paid on shares
5 October 2012 APFF Roundtable Q. 13, 2012-0454181C6 F - Discretionary Dividend Shares Income Tax Act - Section 15 - Subsection 15(1) discretionary dividend shares issued for nominal consideration
Income Tax Act - Section 245 - Subsection 245(4) general policy against conferring a benefit on a corporation
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) - Paragraph 110.6(7)(b) acquisition by Holdco of discretionary dividend shares of Opco at undervalue could engage s. 110.6(7) application to Opco commons
5 October 2012 APFF Roundtable Q. 17, 2012-0454111C6 F - Power of attorney and acquisition of control Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) power of attorney in event of capacity is an external document which, when judically approved, does not effect a change of control
2012-11-28 22 October 2012 External T.I. 2012-0432241E5 F - Impôt des enfants mineurs - gain en capital Income Tax Act - Section 120.4 - Subsection 120.4(4) purported dirty s. 85(1) capital gains crystallization by minor child instead generates dividend
27 August 2012 Internal T.I. 2012-0435571I7 F - Opposition à une cotisation Income Tax Act - Section 165 - Subsection 165(1) Act does not limit the reasons for an objection (taxpayer can change mind up to objection time)
2012-11-14 22 October 2012 External T.I. 2012-0452491E5 F - Repas fournis dans le cadre d'une formation Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) Pink Elephant followed/potential exception for training business where it breaks out meals on its invoices
Income Tax Act - Section 67.1 - Subsection 67.1(1) trainees required to break out meal portion of their invoices even if not separately identified
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training training expenses deductible (subject to s. 67.1(1)) provided that no new skill or qualification is acquired
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) deductibility of meal portion of training charges may be denied under s. 18(1)(h)
10 October 2012 External T.I. 2012-0451751E5 F - Statut fiscal des artistes /présomption Income Tax Act - Section 5 - Subsection 5(1) status as an employee not affected by presumption in Quebec Status of Artists Act that an independent contractor
24 October 2012 Internal T.I. 2012-0454661I7 F - Conseils de planification financière Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(iv) - Clause 6(1)(a)(iv)(B) exclusion can extend to reimbursement or payment of fees for financial planning
5 October 2012 Roundtable, 2012-0454151C6 F - Registre des déplacements Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) onus on employer to support benefit computation if kilometer log
Income Tax Act - Section 230 - Subsection 230(1) no stipulated documentary requirement for kilometer log
5 October 2012 APFF Roundtable Q. 8, 2012-0454161C6 F - Computation of CDA and Acquisition of Control Income Tax Act - Section 245 - Subsection 245(4) purchase of shares of cash-rich company could be part of abusive surplus strip
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) CDA deduction for net capital losses not affected by their denial under s. 111(4)(a)
2012-10-31 12 October 2012 External T.I. 2011-0428521E5 F - Société d'État Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.4) (d.4) corp cannot be partly owned directly by Crown/capital (as contrasted to share) ownership is relevant only for non-share corps
10 September 2012 External T.I. 2012-0446921E5 F - Avantage pour automobile Income Tax Act - Section 6 - Subsection 6(2) transfer to related corp stepped down cost for standby charge purposes to FMV
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e.4) car acquired at cost equal to FMV for standby charge purpose notwithstanding s. 85(1) election
11 October 2012 External T.I. 2012-0433681E5 F - Résidence principale terrain adjacent Income Tax Act - Section 54 - Principal Residence - Paragraph (e) adjacent land not included in principal residence if owned by spouse, not by taxpayer
18 September 2012 External T.I. 2012-0442581E5 F - Fiducie au profit d'un athlète amateur Income Tax Act - Section 143.1 - Subsection 143.1(2) amounts distributed from athlete trust were business income
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose expenses of athlete with athlete trust
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit tests for source of business income for amateur athlete
22 October 2012 Internal T.I. 2012-0459681I7 F - Hiring Credit for Small Business and CCE deduction Income Tax Act - Section 63 - Subsection 63(1) - Paragraph 63(1)(d) HCSB credit reduces babysitting expense re EI premiums
18 October 2012 External T.I. 2012-0452131E5 F - CIE, établissement domestique autonome Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) s. 118(1)(b.1) credit can be claimed for different children by different parents
20 September 2012 External T.I. 2011-0430811E5 F - Attribution à un établissement stable Income Tax Regulations - Regulation 402 - Subsection 402(4) - Paragraph 402(4)(c) - Subparagraph 402(4)(c)(ii) application of Reg. 404(4)(c)(ii) to ore processed in two provinces
Income Tax Regulations - Regulation 402 - Subsection 402(4) - Paragraph 402(4)(b) as Reg. 404(4)(c)(ii) prevailed over Reg. 404(4)(b) re ore processed in two provinces, its application would not be affected by the negotiation of the export sales by personnel in the 2nd province
18 September 2012 External T.I. 2011-0423941E5 F - Entreprise de prestation de services personnels Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(p) - Subparagraph 18(1)(p)(ii) cost of benefit to corp generally equals allowance amount and can be the cost of a non-s. 6 benefit – however no benefit if cell phone used primarily in course of employment
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no taxable benefit if cell phone used primarily in employment

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