Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-03-09 29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance damages for event occurring during employment generally will be non-taxable
23 February 2012 External T.I. 2011-0423461E5 F - Automobiles de collection Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) vintage automobiles of corporation/distinction between benefit qua employee or shareholder also applies in s. 6(1)(e) context
22 February 2012 External T.I. 2011-0421671E5 F - Loss of retirement income benefit - death Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(ii) deduction for WSIB compensation paid to estate of deceased injured worker
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) inclusion under s. 56(1)(v), offsetting deduction under s. 110(1)(f)(ii), for Ontario WSIB lump sum on death
29 February 2012 External T.I. 2011-0427831E5 F - Chantier particulier Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) transportation allowance not excluded under s. 6(6)(b) if employee does not receive board and lodging
2012-03-02 21 February 2012 External T.I. 2011-0417471E5 F - Changement d'usage - paragraphe 45(3) Income Tax Act - Section 45 - Subsection 45(3) s. 45(3) election not available where 2nd unit in taxpayer-owned duplex changed from rental to personal use
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) s. 45(1)(c) applies where 2nd unit in taxpayer-owned duplex changed from rental to personal use
Income Tax Act - Section 248 - Subsection 248(1) - Property immovable (including a duplex used 2 different ways) is considered a single property unless subdivided
10 February 2012 External T.I. 2010-0385861E5 F - Actions de remplacement Income Tax Act - Section 44.1 - Subsection 44.1(1) - Replacement Share application to IPO of CCPC
Income Tax Act - Section 44.1 - Subsection 44.1(1) - Qualifying Disposition elements of qualifying disposition definition
2012-02-24 14 February 2012 External T.I. 2011-0416621E5 F - REER, swap Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) computation of advantage from swap transaction
Income Tax Act - Section 207.01 - Subsection 207.01(1) - RRSP Strip swap of savings bond between RRSP and non-registered account would be an RRSP strip
23 January 2012 External T.I. 2011-0409671E5 F - Propriété superficiaire Income Tax Act - Section 54 - Principal Residence - Paragraph (e) land leased to corporation for business use not part of principal residence
Income Tax Act - Section 15 - Subsection 15(1) benefit if building constructed at corporation’s expense for business purposes becomes shareholder’s property by accession
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) individual shareholder not entitled to claim CCA on building constructed by the corporation for use in its business even where taxpayer owns it
General Concepts - Ownership whether tenant had Quebec right of superficies to garage erected by it determined whether it was its property
Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property building erected by corporation on shareholder’s land not depreciable property unless shareholder renounces right of accession
9 February 2012 Internal T.I. 2011-0426871I7 F - Perte au titre d'un placement d'entreprise Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) - Subparagraph 39(1)(c)(iv) requirement satisfied where debtor reacquired its status as SBC before becoming bankrupt
6 February 2012 External T.I. 2012-0434071E5 F - Honoraires professionnels - PDV Income Tax Act - Section 60 - Paragraph 60(o) professional fees incurred under VDP are deductible under s. 60(o) once CRA commences its review
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees professional fees incurred in applying under the VDP are not deductible
2012-02-17 9 February 2012 External T.I. 2008-0280941E5 F - Foreign sourced income - transportation Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) s. 4(1)(b) generally applied on a jurisdictional basis
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

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