Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2013-01-09 5 November 2012 External T.I. 2012-0458801E5 F - Frais de déménagement Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation move can relate to an existing workplace if there is a causal link
30 October 2012 Internal T.I. 2012-0457941I7 F - Indemnité de départ Income Tax Act - Section 110.2 - Subsection 110.2(1) - Specified Portion an award in settlement of severance pay did not relate back to the years in which it accrued
16 October 2012 External T.I. 2011-0425271E5 F - Small CCPC Income Tax Act - Section 157 - Subsection 157(1.2) - Paragraph 157(1.2)(a) carryback of losses can produce small CCPC ("SCCPC") status (quarterly instalments) but not reduce instalment base
Income Tax Regulations - Regulation 5301 - Subsection 5301(4) - Paragraph 5301(4)(a) Amalco’s instalments based on tax payable of predecessors
Income Tax Regulations - Regulation 5301 - Subsection 5301(6) - Paragraph 5301(6)(a) flow-through of attributes of wound-up sub
Income Tax Regulations - Regulation 5301 - Subsection 5301(8) - Paragraph 5301(8)(a) 1st instalment base of transferor taken into account by transferee
13 June 2012 Internal T.I. 2012-0448961I7 F - Paiements en trop faits par un employeur Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) salary mistakenly paid after expiry of sick leave period and then repaid, treated as clerical error rather than s. 8(1)(n) adjustment
Income Tax Act - Section 80.4 - Subsection 80.4(1) grant of extended period for employee to repay overpayment was not a s. 80.4 loan
5 November 2012 External T.I. 2012-0445241E5 F - 54 et 40(2)b) Income Tax Act - Section 54 - Principal Residence whether a duplex is a single housing unit turns on the degree of independence v. integration of the two units
2012-12-24 5 October 2012 Roundtable, 2012-0454191C6 F - Policy on Facts in a Ruling Request Income Tax Act - Section 152 - Subsection 152(1) CRA is not confined by requested rulings and submitted facts, where it has concerns
5 October 2012 Roundtable, 2012-0451291C6 F - Subsection 85(1) and UMIR Marketplace Rules Income Tax Act - Section 85 - Subsection 85(1) s. 85(1) not available where shares transferred to holding company through the exchange
5 October 2012 Roundtable, 2012-0453941C6 F - Principal residence owned by a trust-exemption Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) status based on s. 248(25) application and actual habitation
Income Tax Act - Section 54 - Principal Residence - Paragraph (f) renunciation by specified beneficiaries immediately before sale would not affect para. (f) exclusion
5 October 2012 Roundtable, 2012-0453161C6 F - RRIF, prohibited investment, minimum amount Income Tax Act - Section 146.3 - Subsection 146.3(1) - Retirement Income Fund payout of transitional prohibited investment benefit may be taken into account as satisfying the minimum amount
5 October 2012 APFF Roundtable, 2012-0453891C6 F - Price Adjustment Clause General Concepts - Effective Date operation of freeze price adjustment clause depends on share actually being adjusted and can apply for s. 75(2) purposes
Income Tax Act - Section 75 - Subsection 75(2) price adjustment clause that is implemented potentially can prevent s. 75(2) application to estate freeze
5 October 2012 APFF Roundtable, 2012-0454171C6 F - Taxable Pref. Shares and Short-Term Pref. Shares Income Tax Act - Section 248 - Subsection 248(1) - Taxable Preferred Share - Paragraph (f) para. (f) tests applied at time of payment and receipt of dividend
2012-12-12 20 November 2012 External T.I. 2012-0440031E5 F - Quebec Tax Credit for Production of Performances Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) Québec Credit for the Production of Performances includible under ss. 12(1)(x)(iii) and (iv) rather than s. 9
2012-12-05 7 November 2012 External T.I. 2012-0437821E5 F - Registered Plan - Advantage Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) advantage from swap transaction includes 100% of resulting value increase, income on transferred property and income on income
5 October 2012 APFF Roundtable, 2012-0454091C6 F - GRIP and deemed dividend pursuant to 84.1(1)(b) Income Tax Act - Section 89 - Subsection 89(14) s. 84.1 deemed dividend paid to an individual could be an eligible dividend notwithstanding him not being a shareholder of the payer
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) unnecessary in s. 89(14) for s. 84.1 to have deemed dividend to be paid on shares
5 October 2012 APFF Roundtable Q. 13, 2012-0454181C6 F - Discretionary Dividend Shares Income Tax Act - Section 15 - Subsection 15(1) discretionary dividend shares issued for nominal consideration
Income Tax Act - Section 245 - Subsection 245(4) general policy against conferring a benefit on a corporation
Income Tax Act - Section 110.6 - Subsection 110.6(7) - Paragraph 110.6(7)(b) acquisition by Holdco of discretionary dividend shares of Opco at undervalue could engage s. 110.6(7) application to Opco commons
5 October 2012 APFF Roundtable Q. 17, 2012-0454111C6 F - Power of attorney and acquisition of control Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) power of attorney in event of capacity is an external document which, when judically approved, does not effect a change of control
2012-11-28 22 October 2012 External T.I. 2012-0432241E5 F - Impôt des enfants mineurs - gain en capital Income Tax Act - Section 120.4 - Subsection 120.4(4) purported dirty s. 85(1) capital gains crystallization by minor child instead generates dividend
27 August 2012 Internal T.I. 2012-0435571I7 F - Opposition à une cotisation Income Tax Act - Section 165 - Subsection 165(1) Act does not limit the reasons for an objection (taxpayer can change mind up to objection time)
2012-11-14 22 October 2012 External T.I. 2012-0452491E5 F - Repas fournis dans le cadre d'une formation Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) Pink Elephant followed/potential exception for training business where it breaks out meals on its invoices
Income Tax Act - Section 67.1 - Subsection 67.1(1) trainees required to break out meal portion of their invoices even if not separately identified
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training training expenses deductible (subject to s. 67.1(1)) provided that no new skill or qualification is acquired
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) deductibility of meal portion of training charges may be denied under s. 18(1)(h)
10 October 2012 External T.I. 2012-0451751E5 F - Statut fiscal des artistes /présomption Income Tax Act - Section 5 - Subsection 5(1) status as an employee not affected by presumption in Quebec Status of Artists Act that an independent contractor
24 October 2012 Internal T.I. 2012-0454661I7 F - Conseils de planification financière Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(iv) - Clause 6(1)(a)(iv)(B) exclusion can extend to reimbursement or payment of fees for financial planning
5 October 2012 Roundtable, 2012-0454151C6 F - Registre des déplacements Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) onus on employer to support benefit computation if kilometer log
Income Tax Act - Section 230 - Subsection 230(1) no stipulated documentary requirement for kilometer log
5 October 2012 APFF Roundtable Q. 8, 2012-0454161C6 F - Computation of CDA and Acquisition of Control Income Tax Act - Section 245 - Subsection 245(4) purchase of shares of cash-rich company could be part of abusive surplus strip
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) CDA deduction for net capital losses not affected by their denial under s. 111(4)(a)
2012-10-31 12 October 2012 External T.I. 2011-0428521E5 F - Société d'État Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.4) (d.4) corp cannot be partly owned directly by Crown/capital (as contrasted to share) ownership is relevant only for non-share corps
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

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