Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-04-06 28 March 2012 External T.I. 2011-0412541E5 F - Compte de dividendes en capital Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) s. 89(12 deemd capital gain generates CDA addition
26 March 2012 External T.I. 2010-0367351E5 F - Emprunt pour faire prêt sans intérêt à une fiducie Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest deduction on money borrowed to fund interest-free advance to subsidiary trust used, in turn, for income-producing purpose
29 March 2012 External T.I. 2010-0391311E5 F - OBNL, exploitation d'une entreprise Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) Timmins expansive concept of "business" applied
20 February 2012 Internal T.I. 2011-0429471I7 F - OBNL et profits accessoires Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) food and beverage sales at a the NPO’s annual hosting of festival conformed with operating for non-profit purpose
2012-03-30 12 March 2012 External T.I. 2011-0425361E5 F - Assistance paid by franchisor Income Tax Act - Section 9 - Exempt Receipts/Business reimbursements of business expenses increase income
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) contest awards paid to franchisees includible under s. 12(1)(x) if not under s. 9
20 February 2012 Internal T.I. 2011-0429461I7 F - OBNL et profits accessoires Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) articles of NPO should have prohibition on profit-seeking by it and any successor
20 March 2012 External T.I. 2011-0424461E5 F - Déduction d'une rétribution à un agent immobilier Income Tax Act - Section 9 - Timing commissions paid for leasing-up a new building generally are fully and currently deductible
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense lease-up commissions were current expenses
16 March 2012 External T.I. 2011-0423191E5 F - Disposition d'une participation dans une SP Income Tax Act - Section 98 - Subsection 98(1) disposition of partnership interest for nil proceeds when partnership dissolved upon winding-up distribution
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) - Subparagraph (b)(i) disposition of partnership interest even though no proceeds received
8 March 2012 External T.I. 2011-0426061E5 F - Bien agricole admissible Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) land that had been farmed for 5 years before being rented out to neighbouring farmer qualified, including farm house
12 March 2012 Internal T.I. 2011-0431631I7 F - Catégorie d'amortissement- maison flottante Income Tax Regulations - Schedules - Schedule II - Class 7 portable floating home qualified as “vessel”
Income Tax Act - Section 13 - Subsection 13(21) - Vessel vessel is as defined in Canada Shipping Act, 2001
Statutory Interpretation - Interpretation Act - Section 44 - Paragraph 44(h) IA s. 44(h) applied to reference definition in replacement Canada Shipping Act
22 March 2012 External T.I. 2011-0425571E5 F - Avantage imposable - maison habitée sans frais Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) CCA can be claimed on asset made available to employee-shareholder qua employee
21 March 2012 External T.I. 2011-0423141E5 F - Application du paragraphe 107(4.1) Income Tax Act - 101-110 - Section 107 - Subsection 107(4.1) - Paragraph 107(4.1)(c) s. 107(4.1) applied to distribution to settlor/beneficiary of property acquired with borrowed money
2012-03-23 14 March 2012 External T.I. 2011-0422551E5 F - Application du paragraphe 98(5) Income Tax Act - Section 98 - Subsection 98(5) s. 98(5) unavailable where rental-property LP is wound up into a partner who operated the business in the leased property
29 February 2012 Internal T.I. 2011-0429701I7 F - Frais médicaux- services de tutorat Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(l.91) more particulars required re whether special needs tutor would qualify
28 February 2012 External T.I. 2011-0423201E5 F - Frais de déménagement Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation move following shift from part-time to full-time at same employer did not qualify
13 March 2012 External T.I. 2012-0433661E5 F - Notion de dépense engagée Income Tax Act - Section 118.2 - Subsection 118.2(2.1) expense incurred if obligation has come into existence
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense expense not incurred if obligation therefor dependent on future contingency
16 March 2012 External T.I. 2012-0432101E5 F - Acquisition d'un séparateur d'huile Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) oil separator Class 1 if sufficiently attached to garage
14 March 2012 External T.I. 2011-0423291E5 F - Fiducie pour soi-même sans limite d'âge Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) joint protective trust would not satisfy s. 73(1.01)(c)(ii)
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(iii) - Clause 73(1.01)(c)(iii)(A) two spouses separate from their children can create a joint spousal or common-law partner trust
Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust tainting effect of joint spousal or common-law partner trust on subsequent testamentary trust
Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(a) joint protective trust would not satisfy paras. (a) and (e) of "qualifying disposition"
2012-03-16 23 February 2012 External T.I. 2011-0421821E5 F - Test à l'alinéa 110.6(1)e) de la définition d'AAPE Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (e) replaced shares need not be owned for a period of 24 months prior to their replacement – but only for the portion of the 24 months before the time of disposition and ending at the replacement time
7 March 2012 External T.I. 2011-0421301E5 F - Bien agricole admissible Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property - Paragraph (a) logging is not farming business if main focus is logging rather than growing, nurturing and harvesting trees
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) general discussion of s. 110.6(1.3)(a) tests
7 October 2011 Roundtable, 2011-0399411C6 F - Société de personnes - 103(1.1) Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) potential application of s. 103(1.1) where adult children form partnership with money gifted by parent and share pro rata to capital
7 March 2012 External T.I. 2011-0427551E5 F - Établissement stable Treaties - Income Tax Conventions - Article 5 presence of employee in Dominican Republic who did not habitually exercise general authority to contract did not constitute a PE
2012-03-09 28 February 2012 External T.I. 2011-0424191E5 F - Fiscal period of a partnership Income Tax Act - Section 249.1 - Subsection 249.1(2) "share of ... income" references contractual entitlement irrespective of actual partnership income quantum
22 February 2012 External T.I. 2011-0424601E5 F - Scholarships and bursaries paid by a firm Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) potential qualification under s. 56(1)(n) if bursary paid by employer while student not a summer student or permanent employee
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employer-reimbursed tuition not considered for its training benefit if incurred before employment commenced
24 February 2012 External T.I. 2011-0413311E5 F - Bien agricole admissible Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property woodlot sale by father (who only had rented to son) to son likely qualified provided IT-373R2 farm v. logging operation, and s. 110.6(1.3)(b) gross revenue, tests satisfied
28 February 2012 External T.I. 2011-0420391E5 F - Prestations au décès Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit death benefit can be received by a former employee
29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief Income Tax Act - Section 5 - Subsection 5(1) damages on retroactive reinstatement are taxable
Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) previous employment years of service included if bought back
Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(B) employer contributions vest for each year bought back by an employee

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