Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-11-04 7 October 2011 Roundtable, 2011-0411851C6 F - Fiducie de protection d'actifs General Concepts - Effective Date trust deed clause deeming trust property to be distributed immediately prior to death would not be recognized as taking effect at that time
Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (b) distribution of property from asset protection trust directly, rather than via estate, to testamentary trust would taint it
7 October 2011 Roundtable, 2011-0407951C6 F - Options, don d'actions Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.01) cannot claim both a s. 110(1)(d.01) and s. 110(1)(d.1) deduction
7 October 2011 Roundtable, 2011-0412021C6 F - Financing Expenses Income Tax Act - Section 12 - Subsection 12(2.2) s. 12(2.2) might apply to on-charge, to ultimate group recipient of financing, of the financing expenses
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(ii.2) CRA will evaluate whether the transactions are "restructuring"
7 October 2011 Roundtable, 2011-0412161C6 F - Timing of the increase in interest - stock option Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) grant of in-the-money options to key employee as part of same series could be a significant increase in interest – which otherwise occurs on exercise
7 October 2011 APFF Roundtable Q. 17, 2011-0412171C6 F - 112(7) - Share-for-Share Exchange - 85(1) Income Tax Act - Section 112 - Subsection 112(3) s. 112(3) could still apply if "old" dividend-bearing shares "exchanged" under purported s. 85(1) exchange for "new" but identical shares
Income Tax Act - Section 248 - Subsection 248(1) - Disposition purported dirty s. 85 exchange of old common shares for new common shares does "not necessarily" entail a disposition
Income Tax Act - Section 85 - Subsection 85(1) potentially no disposition if "new" share rights identical
Income Tax Act - Section 112 - Subsection 112(7) s. 112(7) does not “technically” apply to a dirty s. 85 exchange of old shares for new shares
2011-10-28 14 October 2011 External T.I. 2011-0421141E5 F - Computation of capital dividend account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(i) - Clause (a)(i)A) s. 89(1)(a)(i)(A) exclusion re s. 53(1)(b)(ii) is inapplicable if s. 55(2)(a) applied
30 September 2011 Internal T.I. 2011-0393171I7 F - Representation or other special allowances Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(iii) foreign service premium received by armed forces member so qualified
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no benefit for excess of rent allowance over cost of comparable Cdn location or where higher class of accommodation is for security reasons
14 October 2011 Internal T.I. 2011-0410781I7 F - Repas fournis gratuitement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) benefit from free meals delivered on-site
27 September 2011 External T.I. 2011-0400141E5 F - Allocations pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) reasonable daily meal allowance for travelling in local municipality to enhance efficiency is non-taxable
18 October 2011 External T.I. 2011-0394041E5 F - Fiducie personnelle- revenu brut Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue gross revenue from farming business did not include capital gains
Income Tax Act - Section 3 capital gains not included in computing income from a source
17 October 2011 External T.I. 2011-0423361E5 F - Loi sur le courtage immobilier General Concepts - Illegality Quebec real estate brokers can earn their remuneration through a corporation
Income Tax Act - Section 9 - Nature of Income Quebec real estate broker can generate commissions in a controlled corporation
29 September 2011 External T.I. 2011-0405391E5 F - Utilisation d'un aéronef Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) price charged to customers for flights on company aircraft determined taxable benefit to employees/benefit to majority shareholder was qua employee
18 October 2011 External T.I. 2011-0422021E5 F - Purpose test - Subsection 55(2) of the Act Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) dividend from grandchild to child likely does not engage s. 55(2) re sale of shares of grandparent
13 October 2011 External T.I. 2010-0382441E5 F - RSG- Employé / travailleur autonome Income Tax Act - Section 5 - Subsection 5(1) home childcare providers were self-employed given relative autonomy
2011-10-21 22 September 2011 External T.I. 2011-0403991E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program program means program of study, not individual course
2011-09-30 22 September 2011 External T.I. 2011-0394961E5 F - Droits ou biens Income Tax Act - Section 70 - Subsection 70(3) s. 70(3) cannot apply iteratively to artist’s inventory
21 September 2011 External T.I. 2010-0375361E5 F - Liquidation d'une coopérative agricole Income Tax Act - Section 84 - Subsection 84(2) s. 84(2) applied to winding-up of cooperative
19 September 2011 External T.I. 2011-0410411E5 F - Attribution - Transfers to Corporations Income Tax Act - Section 74.4 - Subsection 74.4(2) s. 74.4(2) did not apply to the creation of a corporate asset protection structure
2011-09-23 12 September 2011 External T.I. 2011-0397731E5 F - Crédit d'impôt pour frais médicaux Income Tax Regulations - Regulation 5700 - Section 5700 - Paragraph 5700(h) "hospital bed" does not extend to all types of adjustable beds
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) aquatherapy classes (or pain management courses) do not qualify if non-qualified payee
16 August 2011 Internal T.I. 2011-0401721I7 F - Loss Utilization Income Tax Act - Section 88 - Subsection 88(1.1) - Paragraph 88(1.1)(e) factors in determining whether investments are held as a business
Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) holding company whose only sources of income were inter-affiliate loan and subsidiary shares had losses from property rather than business
6 September 2011 External T.I. 2010-0389011E5 F - L'interprétation de " est en droit de recevoir" Income Tax Act - Section 13 - Subsection 13(7.1) taxpayer is entitled to receive Quebec M&P credit at end of year in which the eligible expenditures were incurred
2011-09-16 2 September 2011 Internal T.I. 2011-0419111I7 F - Programme de compensation du MESS Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) social assistance payments aggregating less than $500 not required to be included in income
31 August 2011 External T.I. 2011-0416541E5 F - Montant admis en déduction - REÉR Income Tax Act - Section 146 - Subsection 146(5) if premium not claimed, deduction amount is nil
6 September 2011 Internal T.I. 2011-0401191I7 F - Automobiles mises à la disposition des employés Income Tax Act - Section 6 - Subsection 6(2) standby not computed for months in which automobiles in storage and unavailable for use
2011-09-09 31 August 2011 External T.I. 2011-0415891E5 F - Increase in stated capital, stock dividends -55(2) Income Tax Act - Section 248 - Subsection 248(28) s. 248(28)(a) applied to reduce capital gain on disposition of preferred shares on which a capital gain had been realized under s. 55(2)(b)
Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(c) capital gain recognized under s. 55(2)(c) not recognized a second time on sale of the shares
2011-09-02 25 August 2011 External T.I. 2011-0417511E5 F - CDA and Excessive dividend Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (b) excess capital dividend does not reduce payor’s CDA and increases corporate shareholder’s CDA
2011-08-26 15 August 2011 External T.I. 2011-0415071E5 F - 110.5 and safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income not increased by s. 110.5 addition
2011-08-19 11 August 2011 External T.I. 2011-0406061E5 F - Dommages reçus suite à la perte d'un emploi Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance compensation received for renouncing rights of reinstatement is a retiring allowance
2011-08-12 4 July 2011 External T.I. 2011-0401991E5 F - CDA and life insurance proceeds Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) - Subparagraph (d)(ii) CRA will follow Innovative Installation

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