Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-02-17 9 February 2012 External T.I. 2008-0280941E5 F - Foreign sourced income - transportation Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) incidental business activities in jurisdiction may not constitute carrying on business there
Income Tax Act - Section 126 - Subsection 126(9) s. 4(1)(b) applied for s. 126(9) purposes
Income Tax Act - Section 126 - Subsection 126(7) - Business-Income Tax NY franchise tax qualified as an income tax only if it was not based on non-income specified minimums
8 February 2012 Internal T.I. 2011-0431581I7 F - Sous-alinéa 6(1)a)(vi) proposé General Concepts - Effective Date taxpayers can file based on proposed legislation and wait until announcement that it will not be implemented
Income Tax Act - Section 220 - Subsection 220(3.1) no penalties if taxpayer promptly refiles after announcement that favourable amendment will not proceed
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(vi) “studies” are at all levels and bursaries and tuition reimbursements potentially are included
2012-02-10 27 January 2012 External T.I. 2011-0421551E5 F - Pompiers volontaires Income Tax Act - Section 3 modest amounts received by volunteers are not taxable
Income Tax Act - Section 118.06 - Subsection 118.06(1) “volunteer” firefighters are not true volunteers
27 January 2012 Internal T.I. 2011-0428831I7 F - Crédit d'impôt pour frais médicaux Income Tax Act - Section 118.2 - Subsection 118.2(3) - Paragraph 118.2(3)(b) taxpayer could claim credit for years where he was no longer entitled to claim repaid Quebec drug benefit against private plan due to being out of time
Income Tax Act - Section 152 - Subsection 152(4.2) application under s. 152(4.2) for drug claim deductions that later emerged
12 January 2012 External T.I. 2011-0421791E5 F - Usufruit de terres boisées acquises avant 1987 Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(a) gift of bare ownership resulted in deemed disposition to deemed s. 248(3)(a) personal trust
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) property acquired before 18 June 1987 will qualify if s. 110.6(1.3)(c)(i) or (ii) satisfied
2012-01-27 9 January 2012 External T.I. 2011-0427461E5 F - Attribution Rules and Suspended Loss Rules Income Tax Act - Section 74.2 - Subsection 74.2(1) stop-loss rule in s, 40(3.6) trumped s. 74.2(1) so that denied capital loss was added to transferee spouse’s common share ACB
Income Tax Act - Section 40 - Subsection 40(3.6) stop-loss rule in s, 40(3.6) gave ACB addition to common shares of transferee spouse who redeemed preferred shares gifted to him by spouse
19 January 2012 External T.I. 2011-0414341E5 F - Déf revenu brut location Partie XIII Income Tax Act - Section 216 - Subsection 216(4) election permits withholding only on net amount remitted by agent-manager to NR owner
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) agent-manager required to withhold on gross rent rather than net rent remitted absent s. 216(4) election
4 January 2012 External T.I. 2011-0417371E5 F - Frais de garde d'enfants Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense - Paragraph (b) - Subparagraph (b)(i) child care corporation can render qualifying child care services to the child of its sole shareholder
4 January 2012 External T.I. 2011-0418291E5 F - Transfert entre conjoints Income Tax Act - Section 74.2 - Subsection 74.2(1) - Paragraph 74.2(1)(a) s. 74.2 attribution cease on divorce/s. 74.5(3)(b) election available after marriage breakdown
4 January 2012 Internal T.I. 2011-0408081I7 F - Transactions entre une société et ses actionnaires Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) - Subparagraph 13(7)(e)(i) s. 13(7)(e)(i) capital cost equals consideration paid even where in excess of FMV
7 October 2011 APFF Roundtable Q. 23, 2011-0412111C6 F - Validity of Price Adjustment Clause General Concepts - Effective Date price adjustment clause does not require filing amended election
Income Tax Act - Section 85 - Subsection 85(7.1) validity of price adjustment clause does not depend on filing an amended election
2012-01-20 13 January 2012 Internal T.I. 2011-0414111I7 F - Deemed Interest Incomes - Exception 17(8) Income Tax Act - Section 17 - Subsection 17(8) - Paragraph 17(8)(a) - Subparagraph 17(8)(a)(ii) CFA 1's purchased debt of CFA 2 did not qualify as a loan or advance
4 January 2012 External T.I. 2011-0414731E5 F - Interaction between 84.1 and 83(2) ITA Income Tax Act - Section 83 - Subsection 83(2) no s. 83(2) election available for s. 84.1(1)(b) deemed dividend paid to non-shareholder
Income Tax Act - Section 84 - Subsection 84(7) s. 84(7) might contradict CRA position that no s. 83(2) election on s. 84.1 dividend to non-shareholder
2012-01-13 16 December 2011 External T.I. 2011-0419211E5 F - Choix à 45(2) Income Tax Act - Section 45 - Subsection 45(2) devisee of changed-use principal residence cannot benefit from s. 45(2) election by estate in years following testator’s death
2011-12-30 21 November 2011 External T.I. 2011-0422191E5 F - Price adjustment clause and redemption of shares General Concepts - Effective Date additional payment, pursuant to price adjustment clause, in year following shares; redemption is recognized then
Income Tax Act - Section 84 - Subsection 84(3) price adjustment payment recognized as s. 84(3) dividend when received
16 December 2011 External T.I. 2011-0412502E5 F - Remboursement - frais de scolarité Income Tax Act - Section 118.1 - Subsection 118.1(5) - Paragraph 118.1(5)(a) - Subparagraph 118.1(5)(a)(iii) credit can be claimed where employee is subsequently required to reimburse employer for employer-paid tuition
Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program no benefit denying credit if employee is subsequently required to reimburse employer for employer-paid tuition
2011-12-23 6 December 2011 External T.I. 2011-0423181E5 F - Safe Income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) where Shareholder with high SIOH Class F shares converts its low SIOH Class A shares on rollover basis into Class F shares, there is downward averaging of SIOH per share
12 December 2011 External T.I. 2011-0416801E5 F - Safe Income on Hand - Stub Period Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income generally prorated in stub period
15 December 2011 Internal T.I. 2011-0413891I7 F - Récupération d'amortissement-Recapture CCA Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss reasonable to pro-rate recapture of depreciation between active business income and property income based on relative periods of use
Income Tax Act - Section 13 - Subsection 13(1) successive business and property income use of rental property reflected in apportionment of source of ensuing recapture
7 October 2011 Roundtable, 2011-0411971C6 F - Appraisal Fees Deductibility Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(n) appraisal fees for valuing capital property for the purpose of its acquisition or disposition are an ACB addition
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense deductible appraisal fees to revalue fixed assets in accordance with IFRS
7 October 2011 APFF Roundtable Q. 4, 2011-0412071C6 F - Modifying a Capital Dividend Election General Concepts - Effective Date originally declared dividend not altered by subsequent resolution
Income Tax Act - Section 184 - Subsection 184(3) short-cut method for direct assessment of shareholders for excess amount
7 October 2011 APFF Roundtable Q. 29, 2011-0412131C6 F - Subsection 55(2) and Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(i) - Clause (a)(i)A) CDA addition from application of s. 55(2)(c) is only available in the following years
Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(c) dividend paid in contemplation of subsequent arm’s length share sale is part of proceeds of that sale
2011-12-16 8 October 2010 Roundtable, 2010-0373291C6 F - Tuck-Under Transactions - Safe Income Extractions Income Tax Act - Section 245 - Subsection 245(4) Vaillancourt-Tremblay did not validate all tuck-under transactions

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