Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-10-31 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
2012-10-17 2 October 2012 External T.I. 2012-0446671E5 F - Subsection 78(4) Income Tax Act - Section 78 - Subsection 78(4) s. 78(4) inapplicable where payment made on 180th day
2012-10-10 6 July 2012 Internal T.I. 2012-0453461I7 F - rental losses Canada-France Treaty Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit no requirement to establish reasonable expectation of profit re deducting loss from French rental property if no personal element
Treaties - Income Tax Conventions - Article 24 s. 126(1) FTC re French income tax on rental income
2012-10-03 17 July 2012 Internal T.I. 2012-0454701I7 F - Arrière-arrière-grand-père Income Tax Act - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation - Paragraph (a) - Subparagraph (a)(iii) farm use by great-great-grandparent did not qualify the property, cf. great-grandparent
Income Tax Act - Section 252 - Subsection 252(2) - Paragraph 252(2)(a) parent in s. 110.6 context includes great-grandparent but not great-great-grandparent
2012-09-14 4 July 2012 External T.I. 2011-0429601E5 F - Roulement et société de personnes Income Tax Act - Section 98 - Subsection 98(3) two partnerships potentially could be merged by using s. 97(2) followed by s. 98(3), or the reverse
Income Tax Act - Section 97 - Subsection 97(2) partnership is taxpayer for purposes of s. 97(2), which might be used with s. 98(3)
30 July 2012 External T.I. 2011-0421801E5 F - Choix aux paragraphes 70(2) et 70(3) Income Tax Act - Section 70 - Subsection 70(2) if desire for s. 70(3) to apply, a timely revocation of s. 70(2) election can be made
Income Tax Act - Section 70 - Subsection 70(3) application of s. 70(3) re deceased’s share of partnership WIP is at estate’s choice
2012-08-31 3 July 2012 Internal T.I. 2012-0450821I7 F - Interaction of 84(3) and 69(1)(b) Income Tax Act - Section 84 - Subsection 84(3) s. 84(3) deemed dividend based on actual redemption proceeds rather than s. 69
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) s. 69(1)(b) adjustment generates capital gain even though larger share redemption proceeds in the 1st place would have been exempt
14 August 2012 External T.I. 2012-0450041E5 F - subsection 55(4) Income Tax Act - Section 55 - Subsection 55(4) s. 55(4) not engaged where transactions eliminate shareholdings but not unrelated status of unrelated person
Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3)(a)(ii) exclusion avoided by distributing shares out of unrelated-person trust
15 August 2012 External T.I. 2012-0444461E5 F - Pompiers volontaires Income Tax Act - Section 118.06 - Subsection 118.06(1) not a “volunteer” if paid more than a minimal amount or minimum hours are required
Income Tax Act - Section 81 - Subsection 81(4) “volunteer firefighter” has the same meaning as in s. 118.96(1)
10 July 2012 External T.I. 2012-0437531E5 F - Télétravail et revenu d'emploi d'un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 income of Indian required to telecommute from home office on reserve likely exempted
8 August 2012 External T.I. 2012-0442321E5 F - Pompiers volontaires Income Tax Act - Section 118.06 - Subsection 118.06(1) firefighter is not “volunteer” if remuneration is “comparable” to regular firefighter
27 June 2012 External T.I. 2012-0440721E5 F - Compte de gestion de santé Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement conversion of future bonus into PHSP is taxable
2012-08-24 14 June 2012 External T.I. 2012-0443711E5 F - RAP - Annulation de la vente de l'immeuble Income Tax Act - Section 146.01 - Subsection 146.01(1) - Eligible Amount subsequent court-ordered voiding of home purchase funded with HBP does not affect satisfaction of the HBP conditions
General Concepts - Effective Date subsequent court-ordered voiding of home purchase did not retroactively void satisfaction of the HBP conditions at home purchase time
26 July 2012 External T.I. 2012-0440261E5 F - Crédit d'impôt pour enfants Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) end-of-year requirement not satisfied when child died in year before attaining 18
30 July 2012 Internal T.I. 2012-0436711I7 F - Reassessment beyond the normal reassessment period Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) CRA could reassess beyond normal reassessment period based solely on an ARQ audit report showing error and carelessness of the taxpayer
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

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