Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-03-27 21 February 2013 External T.I. 2012-0465711E5 F - Attribution Rules after Divorce Income Tax Act - Section 74.2 - Subsection 74.2(1) entire rather than only pro rata portion of a post-divorce capital gain is not subject to attribution
2013-03-20 5 December 2012 Internal T.I. 2012-0451331I7 F - Déductibilité de frais juridiques Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal expenses incurred to minimize responsibility under guarantee were not connected to operations which were necessary or incidental to the earning of income
Income Tax Act - Section 60 - Paragraph 60(o) sales tax disputes not covered; expenses start running from audit review
31 January 2013 Internal T.I. 2012-0466641I7 F - Réduction du coût en capital d'un bien Income Tax Act - Section 13 - Subsection 13(7.1) reduction for Quebec M&P ITC occurs in year following incurring of the eligible expenses
19 December 2012 External T.I. 2011-0425581E5 F - CII - régions admissibles-Montérégie-Rive-Sud Income Tax Act - Section 127 - Subsection 127(9) - Specified Percentage description of qualifying ITC regions (which exclude Montérégie South Shore)
24 October 2012 External T.I. 2012-0443721E5 F - Compensation - vente d'un immeuble Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Damages taxpayer need not have attempted to prevent the act or omission resulting in the damages
20 February 2013 External T.I. 2012-0473051E5 F - Frais de gestion versés à un conjoint Income Tax Act - Section 67 determining reasonableness of spousal management fee entails a “comparison to an amount paid for similar services according to industry standards”
27 November 2012 External T.I. 2012-0445941E5 F - Action déterminée de petite entreprise Income Tax Act - Section 44.1 - Subsection 44.1(1) - Qualifying Disposition shares issued to a family trust do not qualify as "eligible small business corporation shares"
25 February 2013 Internal T.I. 2012-0440371I7 F - Changement d'usage - Duplex Income Tax Act - Section 45 - Subsection 45(3) s. 45(3) election unavailable for partial change of use (duplex going from 50% to 100% personal use)
5 July 2012 Internal T.I. 2010-0388551I7 F - Fiducie - retour de sommes Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) does not apply to an estate freeze as the corp does not own its treasury shares issued to the trust
Income Tax Act - Section 105 - Subsection 105(1) income distributed to daughter-in-law who in fact was not a beneficiary includible in her income under s. 105(1) but not deductible by trust under s. 104(6)
Income Tax Act - Section 104 - Subsection 104(13) capital gain distributed by family trust to children and purportedly lent by them to their parents (also beneficiaries) was instead included in the parents’ income under s. 104(13)
Income Tax Act - Section 110.6 - Subsection 110.6(6) Foisy test of mental element accepted
11 February 2013 External T.I. 2012-0469441E5 F - Aire de plancher - fabrication et transformation Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(a.1) washrooms and cafeteria included - along with office if a connection with the M&P personnel
25 September 2012 Internal T.I. 2011-0409281I7 F - Papier commercial - Obligations XXXXXXXXXX Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss compensating clients for half their loss was currently deducible, whereas purchasing securities at original cost was its cost
Income Tax Act - Section 54 - Adjusted Cost Base acquiring client securities at the clients' cost rather than their lower FMV was reflected in portfolio manager's cost
2013-03-13 14 December 2012 External T.I. 2012-0436981E5 F - Ristournes de coopératives de travailleurs Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage distribution on winding-up of enhancement reserve does not qualify
19 December 2012 External T.I. 2012-0463581E5 F - Allocation pour l'usage d'un véhicule Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) travel to and from home where shifting clientele is in the performance of employment duties/Reg. 7306 rates presumptively reasonable
7 January 2013 External T.I. 2012-0460021E5 F - Remboursement de cotisations à un club Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) where “membership in a fitness centre allows the employee to meet … specific conditions [of employment,” the test of “more than 50% … to the employer's advantage” may be met
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) denial applies to fitness centre fees, irrespective of benefit to employer
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 - 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 - 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

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