Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-06-22 24 April 2012 Internal T.I. 2011-0400671I7 F - Honoraires professionnels 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
2012-05-11 28 March 2012 External T.I. 2011-0422531E5 F - Revenu fractionné Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(C) only a portion of s. 104(13) income might be split income
24 April 2012 Internal T.I. 2012-0440711I7 F - Indemnité de repas; remboursement pour déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) policy re subsidized meals does not extend to meal allowances or vouchers
30 March 2012 External T.I. 2011-0428741E5 F - Allocations pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) travel allowance for additional travel to and from work might be taxable even where employer fault
23 January 2012 External T.I. 2011-0424671E5 F - Avantage imposable - Stationnement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) generally no benefit from free parking if employee must use car 3 days a week in duties
2012-04-27 17 April 2012 External T.I. 2011-0427411E5 F - Bien de remplacement-immobilisation admissible Income Tax Act - Section 14 - Subsection 14(7) shares cannot be replacement property
17 April 2012 External T.I. 2012-0440931E5 F - Crédit d'impôt pour frais médicaux Income Tax Regulations - Regulation 5700 - Section 5700 - Paragraph 5700(i) motorized stationary bicycle did not qualify
2012-04-20 29 March 2012 Internal T.I. 2011-0430871I7 F - Participation à une étude de recherche clinique Income Tax Act - Section 5 - Subsection 5(1) "volunteers" for drug clinical trials earned business rather than employment income
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit compensation received by participants in clinical drug studies were business income even where they had a personal interest in the study
10 April 2012 External T.I. 2011-0428701E5 F - Lien de dépendance - commanditaire et SEC Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) limited partner at arm's length with LP if it has no management authority
10 April 2012 Internal T.I. 2011-0430291I7 F - Montant d'aide versé par la SAAQ à un conjoint Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit automobile insurance payments received for care of injured spouse were non-taxable
3 April 2012 External T.I. 2011-0426341E5 F - Catégories 29 et 43 Income Tax Regulations - Schedules - Schedule II - Class 29 scrap metal shearing device and container for sliced metal described in Class 29
2012-04-13 17 June 2011 Internal T.I. 2011-0394471I7 F - Associated Corporations - 256 Income Tax Act - Section 256 - Subsection 256(2) s. 256(2) does not multiply the SBD but protects it where particular corporations otherwise are eligible
Income Tax Act - Section 256 - Subsection 256(2.1) list of 5 “useful” factors in determining s. 256(2.1) application
Income Tax Act - Section 256 - Subsection 256(5.1) Transport M.L. Couture cited as an example
29 March 2012 External T.I. 2011-0427821E5 F - Biens agricoles admissibles Income Tax Act - Section 30 s. 30 expenses can be claimed by farming lessee or carried forward
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership potential qualification where farm property of partnership is leased to farming corp. with same family owners
1 March 2012 Internal T.I. 2012-0437901I7 F - Timing of the adjustments pursuant to 111(5) Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) acquisition of control of target does not reduce its NCLs at that time – streaming rules apply prospectively
26 March 2012 External T.I. 2012-0440441E5 F - Déduction accordée aux petites entreprises Income Tax Act - Section 125 - Subsection 125(1) trite SBD overview

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