Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2012-03-16 7 March 2012 External T.I. 2011-0421301E5 F - Bien agricole admissible Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property - Paragraph (a) logging is not farming business if main focus is logging rather than growing, nurturing and harvesting trees
Income Tax Act - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) general discussion of s. 110.6(1.3)(a) tests
7 October 2011 Roundtable, 2011-0399411C6 F - Société de personnes - 103(1.1) Income Tax Act - Section 103 - Subsection 103(1.1) potential application of s. 103(1.1) where adult children form partnership with money gifted by parent and share pro rata to capital
7 March 2012 External T.I. 2011-0427551E5 F - Établissement stable Treaties - Income Tax Conventions - Article 5 presence of employee in Dominican Republic who did not habitually exercise general authority to contract did not constitute a PE
2012-03-09 28 February 2012 External T.I. 2011-0424191E5 F - Fiscal period of a partnership Income Tax Act - Section 249.1 - Subsection 249.1(2) "share of ... income" references contractual entitlement irrespective of actual partnership income quantum
22 February 2012 External T.I. 2011-0424601E5 F - Scholarships and bursaries paid by a firm Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) potential qualification under s. 56(1)(n) if bursary paid by employer while student not a summer student or permanent employee
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employer-reimbursed tuition not considered for its training benefit if incurred before employment commenced
24 February 2012 External T.I. 2011-0413311E5 F - Bien agricole admissible Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property woodlot sale by father (who only had rented to son) to son likely qualified provided IT-373R2 farm v. logging operation, and s. 110.6(1.3)(b) gross revenue, tests satisfied
28 February 2012 External T.I. 2011-0420391E5 F - Prestations au décès Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit death benefit can be received by a former employee
29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief Income Tax Act - Section 5 - Subsection 5(1) damages on retroactive reinstatement are taxable
Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) previous employment years of service included if bought back
Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(B) employer contributions vest for each year bought back by an employee
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 - 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

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