Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-08-10 3 July 2012 External T.I. 2012-0443421E5 F - 84.1 and partnership Income Tax Act - Section 245 - Subsection 245(4) s. 245(2) has been applied to the use of a partnership to avoid s. 84.1
Income Tax Act - Section 84.1 - Subsection 84.1(1) use of partnership to avoid s. 84.1 could be attacked through challenge to partnership validity or applying s. 245(1) re circumvention of s. 84.1
13 July 2012 External T.I. 2012-0443281E5 F - DPA- véhicule dans le cadre d'un bien locatif Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) CCA could be claimable on motor vehicle used to earn rental income
2012-07-27 3 July 2012 External T.I. 2012-0448651E5 F - Allocation of Safe Income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) apportionment of safe income amongst three classes of discretionary common shares took into account the entitlement of the first class under the USA to a preferential dividend
2012-07-20 9 July 2012 External T.I. 2012-0438751E5 F - Police d'assurance-vie Income Tax Act - Section 148 - Subsection 148(9) - Proceeds of the Disposition proceeds of disposition arise when policy settled and are calculated by insurer
Income Tax Act - Section 237 - Subsection 237(1.1) provision of SIN by holder of matured policy to insurer is required
2012-07-06 28 June 2012 External T.I. 2011-0427871E5 F - Application des paragraphes 98(3) 98(5) et 73(1) Income Tax Act - Section 73 - Subsection 73(1) s. 73(1) available on transfer of undivided interest from one separated spouse to the other following s. 98(3) wind-up of their rental partnership
Income Tax Act - Section 98 - Subsection 98(5) rental operation generating property income is a business for s. 98(5) purposes
26 June 2012 External T.I. 2011-0417391E5 F - Bien remis à une fiducie Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust being a contingent beneficiary of an inter vivos trust disqualified a testamentary trust as such
Income Tax Act - Section 248 - Subsection 248(25) testamentary trust that was included in the class of potential beneficiaries of a discretionary inter vivos trust was a beneficiary
26 June 2012 Internal T.I. 2012-0436381I7 F - Nature d’un revenu - Indemnité d’assurance Income Tax Act - Section 129 - Subsection 129(6) insurance proceeds in lieu of rents from associated corp did not qualify under s. 129(6)
Income Tax Act - Section 9 - Compensation Payments life insurance proceeds for rental property did not have the character of rents from an associated corp
2012-06-29 14 June 2012 External T.I. 2011-0428341E5 F - Crédit activités physiques, activités artistiques Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense expenses that qualified for the child fitness or children's arts tax credit potentially could qualify as child care expenses
2012-06-22 5 June 2012 External T.I. 2011-0417971E5 F - Sociétés associées - CII Income Tax Act - Section 127 - Subsection 127(10.2) computation of expenditure limit where one CCPC acquires another
13 June 2012 Internal T.I. 2012-0435351I7 F - SEPE - chèques en circulation Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation outstanding and uncashed cheques did not reduce cash
General Concepts - Payment & Receipt in Quebec, payment by cheque does not occur until debiting of bank account
24 April 2012 Internal T.I. 2011-0400671I7 F - Honoraires professionnels Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs fees incurred by individual before intention to form a corp did not qualify as pre-incorporation expenses
Income Tax Act - Section 15 - Subsection 15(1) meaning of “benefit”
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) tax planning fees paid to joint counsel qualified as a disposition expense
15 June 2012 External T.I. 2012-0434761E5 F - Dons liés à une police d'assurance-vie Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gift if pay policy premiums following assignment of policy to charity, but not by virtue of designating charity as policy beneficiary
Income Tax Act - Section 248 - Subsection 248(31) donated life insurance policy to be valued on ordinary principles
General Concepts - Fair Market Value - Other 7 factors to be considered in valuing a donated life insurance policy
13 June 2012 External T.I. 2011-0416781E5 F - Entente contractuelle particulière Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) intragroup charges to reflect use of each other’s capital under cash pooling arrangement are non-deductible
2012-06-15 14 May 2012 Internal T.I. 2010-0367831I7 F - Régime de pension étranger. France Income Tax Act - Section 5 - Subsection 5(1) contributions paid by employer to voluntary French pension funds for expatriates were constructively received by employee member
Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement since employer acted as employee agent in making pension contributions, no RCA, EBP or SDA
23 May 2012 Internal T.I. 2011-0418071I7 F - Remise de dettes, PAC Income Tax Act - Section 80 - Subsection 80(3) - Paragraph 80(3)(a) debt settlement results in immediate application of forgiven amount to reduce NCL at that time
Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss - D.2 debt settlement results in immediate application of forgiven amount to reduce NCL at that time
30 May 2012 Internal T.I. 2012-0434471I7 F - Remise de prix non monétaires aux employés Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) distinction between non-cash award for overall contribution to workplace and performance recognition
17 May 2012 Internal T.I. 2012-0437001I7 F - Price Adjustment Clause General Concepts - Effective Date per Gurberg, a PAC has retroactive effect
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e.2) no need to file amended s. 85(1) election where PAC engaged
2012-06-08 7 October 2011 APFF Roundtable, 2010-0371941C6 F - Application de l'article 80 - fusion/liquidation Income Tax Act - Section 80 - Subsection 80(1) - Relevant loss balance NCL of acquired subsidiary preserved for debt forgiveness purposes on amalgamation but lost (if business ceased) on wind-up
Income Tax Act - Section 88 - Subsection 88(1.1) - Paragraph 88(1.1)(e) fiction in s. 80(13) is insufficient to preserve non-capital losses of a subsidiary from a business that ceased following an AOC where subsidiary wound-up and parent has forgiven amount
2012-06-01 1 May 2012 External T.I. 2012-0436401E5 F - Frais de bureau à domicile Income Tax Act - Section 18 - Subsection 18(12) permanent works taxes treated the same as other property taxes/general discussion including of s. 18(12)(c)
2012-05-25 10 May 2012 External T.I. 2012-0440731E5 F - Employer-provided gifts & Awards Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) award of points that could be applied to 40 different services were of near-cash items and, thus, taxable
2012-05-18 2 May 2012 External T.I. 2011-0431701E5 F - Commissions sur une police d’assurance-vie Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) exempt treatment of commissions received by employees on purchases of life insurance policies on their own account does not extend to purchases as investments or to annuities
30 March 2012 Internal T.I. 2011-0408311I7 F - Résidence principale General Concepts - Ownership ownership of home generally follows legal title
Income Tax Act - Section 54 - Principal Residence - Paragraph (a) must be described combination of ownership and ordinary habitation
29 March 2012 External T.I. 2011-0424791E5 F - Imposition du remboursement du permis de conduire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement of regular cost of driver’s licence included even where employee required to drive
27 March 2012 External T.I. 2011-0423851E5 F - Allocations pour frais de déplacement Income Tax Act - Section 81 - Subsection 81(3.1) part-time employment includes part-time office/usual place of performance referenced
10 May 2012 External T.I. 2012-0435591E5 F - Prestation consécutive au décès Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit passage of time between end of employment and benefit on death may affect whether it is in “recognition” of employment

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