Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-02-04 11 January 2011 External T.I. 2010-0385231E5 F - Class 43.2 Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(xiii) digester producing gas from municipal sludge for thermal production could qualify
Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) biomass boiler using wood chips from poplars grown by taxpayer did not qualify
7 January 2011 Internal T.I. 2010-0382411I7 F - Rénovation - dépenses courantes ou en capital Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense repairing damages occurring during major renovation was on income account
5 January 2011 Internal T.I. 2010-0386951I7 F - Résident temporaire - PFCE Income Tax Act - Section 122.6 - Eligible Individual tax residency is referred to in (a) but not in (e)(ii)
14 January 2011 Internal T.I. 2010-0383261I7 F - Fin d'exercice d'une société de personnes Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(b)) - Subparagraph 249.1(1)(b)(ii) s. 249.1(1)(b)(ii) trumps CRA discretion under s. 249.1(7)
Income Tax Act - Section 249.1 - Subsection 249.1(7) CRA could under s. 249.1(7) authorize changed partnership year ends that did not extend beyond calendar year limitation in 249.1(1)(b)(ii)
15 December 2010 External T.I. 2009-0349911E5 F - Calcul du PBR d'une participation dans une SEC Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) no ACB bump for gains realized in the year until Day 1 of following year
Income Tax Act - Section 40 - Subsection 40(3.1) withdrawal equalling capital gain realized in year by LP triggered negative ACB gain to limited partner
2011-01-28 7 January 2011 Internal T.I. 2010-0387011I7 F - DPA dans une année prescrite Income Tax Act - Section 152 - Subsection 152(4) tax from s. 152(4)(a)(i) reassessment of statute-barred year could not be offset through increased CCA claims for that year
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims CCA claims could not be increased in “open” year to generate loss for carryback to year CRA had reassessed outside the normal reassessment period
5 January 2011 Internal T.I. 2010-0389761I7 F - Application du paragraphe 162(7.01) Income Tax Act - Section 162 - Subsection 162(7.01) s. 162(7.01) penalty is cumulative with (7.02). and is computed aggregating base and summary slips and both are computed from initial final deadline if s. 220(3) deadline is missed
7 January 2011 Internal T.I. 2010-0389181I7 F - Paiement forfaitaire - pension alimentaire Income Tax Act - Section 56.1 - Subsection 56.1(4) lump sum support payment did not qualify
2011-01-07 1 December 2010 External T.I. 2010-0385491E5 F - Postes isolés dans la fonction publique Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan employer agreement to pay transportation costs from remote location re medical appointments could qualify as an exempt PHSP
2010-12-31 9 December 2010 External T.I. 2010-0364001E5 F - Ristourne de consommation, feuillet T4A Income Tax Act - Section 135 - Subsection 135(7) no income inclusion re consumer goods or services
Income Tax Regulations - Regulation 218 T4A required where annual payments in proportion to patronage exceed $500
2010-12-24 9 December 2010 External T.I. 2010-0388101E5 F - CCPC status and acquisition of control Income Tax Act - Section 249 - Subsection 249(4) - Paragraph 249(4)(b) CCPC whose control has been agreed to be acquired by Pubco can elect to extend its deemed s. 249(3.1) year end under s. s. 249(4)(b)
Income Tax Act - Section 249 - Subsection 249(3.1) CCPC which has a December 26 deemed year end under ss. 249(3.1) and 251(1)(b) that is extended to December 31 under s. 249(4)(b) loses SBC for that extended year
7 December 2010 External T.I. 2010-0363431E5 F - Date limite cotisation REER Income Tax Act - Section 146 - Subsection 146(5) 60-day contribution deadline is met based on receipt of cheque by issuer, not its deposit
General Concepts - Payment & Receipt RRSP premium “paid” when cheque received by issuer, not when it’s deposited
2010-12-17 2 December 2010 External T.I. 2010-0376451E5 F - Paragraphe 69(11) et transfert de biens agricoles Income Tax Act - Section 70 - Subsection 70(9) s. 70(9.01) could apply to devise of farming property, that was farmed by father but not sons, to them
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) capital gains exemption could apply where farming property, that was farmed by father but not sons, is devised to sons who then sell
Income Tax Act - Section 69 - Subsection 69(11) s. 69(11) could apply where devisee sells qualified farm property shortly after receiving it under s. 70(9.01)
26 November 2010 External T.I. 2008-0299301E5 F - Sommes reçues par des médecins résidents Income Tax Act - Section 5 - Subsection 5(1) medical residents were employees notwithstanding trainee role, so that fellowships were employment income
Income Tax Act - Section 56 - Subsection 56(3) fellowships received by medical residents were not exempted under s. 56(3)
5 November 2010 External T.I. 2010-0383871E5 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) could perform “substantially all” employment duties abroad if less than 10% of the time spent in Canada on preparatory work
2010-12-10 2 December 2010 External T.I. 2010-0386581E5 F - CIFM - Traitement pour problème de peau Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(n) drug to treat skin condition qualified
2010-12-03 20 October 2010 External T.I. 2010-0377251E5 F - Canadian Controlled Private Corporation Income Tax Act - Section 89 - Subsection 89(11) s. 89(11) election required to be made before target elected to cease to be a public corp so as to oust s. 249(3.1)
9 November 2010 External T.I. 2010-0380661E5 F - Internal Reorganization Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) two siblingcos, although not related to each other, were related to dividend recipient on spin-off transaction
Income Tax Act - Section 55 - Subsection 55(4) potential application of s. 55(4) where increase of interest of siblings companies is sheltered by control of Father – unless he held his shares to protect his “economic interests”
9 November 2010 External T.I. 2010-0357091E5 F - Prestation fiscale pour le revenu de travail Income Tax Act - Section 122.7 - Subsection 122.7(1) - Eligibile Dependant qualification as an eligible dependant
25 November 2010 External T.I. 2010-0377841E5 F - Catégorie d'amortissement - bateau Income Tax Regulations - Schedules - Schedule II - Class 7 - Paragraph 7(c) “vessel” includes a moored boat without a motor
Statutory Interpretation - Interpretation Act - Section 44 - Paragraph 44(h) “vessel” informed by meaning in replacement Canada Shipping Act
Income Tax Act - Section 13 - Subsection 13(21) - Vessel "vessel" now defined in (replacement) Canada Shipping Act, 2001
22 November 2010 External T.I. 2010-0374861E5 F - Actions - société agricole familiale Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation - Paragraph (b) test in para. (b) is applied re the use of the property throughout the period of the taxpayer’s ownership
30 September 2010 Internal T.I. 2010-0373901I7 F - Bigamie fiscale - transfert de biens au décès Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(a) s. 70(6)(a) could apply simultaneously to the devise of House A to surviving spouse and of House B to surviving common-law partner
Income Tax Act - Section 40 - Subsection 40(4) - Paragraph 40(4)(b) - Subparagraph 40(4)(b)(i) application of s. 40(4)(b)(i) by both surviving spouse re House A and surviving common-law partner re House B – but not for overlapping years
2010-11-26 7 September 2010 Internal T.I. 2010-0372191I7 F - Société de personnes - partage d'une perte Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(g) “salary” paid to partner was non-deductible and was a capital draw given partnership loss
Income Tax Act - Section 96 salary paid to partner was non-deductible
28 September 2010 External T.I. 2010-0372461E5 F - Exploitation d'une entreprise à perte Income Tax Act - Section 3 - Business Source/Reasonable Expectation of Profit reasonable expectation of profit test not applied where no personal element
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Goodwill, Trademarks and Customer Lists per Canada Starch, a payment made to preserve goodwill or a business is not a capital expenditure

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