Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-11-04 7 October 2011 Roundtable, 2011-0413081C6 F - 227(4) et (4.1) - vente d'un bien à un tiers Income Tax Act - Section 227 - Subsection 227(4) deemed trust is a universal floating charge that traces through to sales proceeds
7 October 2011 Roundtable, 2011-0399421C6 F - Options, biens identiques, PBR Income Tax Act - Section 7 - Subsection 7(1.3) application of s. 47(1) takes s. 7(1.3) into account
7 October 2011 Roundtable, 2011-0407291C6 F - Group Life Insurance Policy Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) - Subparagraph (d)(ii) CDA addition for receipt of proceeds of policy on life of shareholder
Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) could possibly apply where a professional corporation pays the premiums, and is designate the beneficiary, of a policy in name of professional
7 October 2011 Roundtable, 2011-0406551C6 F - Régime coll. d'ass. maladie et les accidents Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) PHSP can include spouses and dependent related persons
Income Tax Act - Section 144.1 - Subsection 144.1(1) - Designated Employee Benefit benefit from a group sickness or accident insurance plan may be paid from a Life and Health Trust to the employee, spouse or dependent child
7 October 2011 Roundtable, 2011-0412211C6 F - Feuillets T4A comptabilité d'exercice Income Tax Regulations - Regulation 200 - Subsection 200(1) CRA will not automatically assess where a T4A appears to show unreported income
7 October 2011 Roundtable, 2011-0420781C6 F - Transfert de RPA à un REER au décès. Income Tax Act - 101-110 - Section 104 - Subsection 104(27) designation respecting RPP lump sum received by estate respecting disabled minor daughter and transferred to her RRSP
Income Tax Regulations - Regulation 103 - Subsection 103(4) withholding required where RPP administrator pays RPP lump sum directly to RRSP of disabled minor daughter beneficiary of estate
Income Tax Act - Section 60 - Paragraph 60(l) - Subparagraph 60(l)(v) - Clause Subparagraph 60(l)(v)(B.01) s. 60(l) deduction where RPP administrator pays RPP lump sum directly to RRSP of disabled minor daughter beneficiary of estate
7 October 2011 Roundtable, 2011-0412221C6 F - Résidence fiducie - Cause St. Michael (Garron) Income Tax Act - Section 2 - Subsection 2(1) determination of the provincial residence of trust
7 October 2011 Roundtable, 2011-0399441C6 F - T1135 - coût indiqué d'une assurance-vie Income Tax Act - Section 233.3 - Subsection 233.3(1) - Reporting Entity cost amount of foreign policy is its adjusted cost basis
Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (f) adjusted cost basis of policy is generally its “cost” under para. (f)
7 October 2011 Roundtable, 2011-0411941C6 F - Covoiturage Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employees and employer must reasonably allocate benefit from gas carpooling expenses being reimbursed
7 October 2011 Roundtable, 2011-0412061C6 F - Financing Expenses Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(i) no s. 20(1)(e) deduction if only capital property that is not a source of income
Income Tax Act - Section 20 - Subsection 20(1) property that is source only of capital gains cannot support a s. 20 deduction
7 October 2011 Roundtable, 2011-0408351C6 F - Honoraire d'évaluation d'une police d'assurance Income Tax Act - Section 148 - Subsection 148(1) no deduction from gain for disposition expenses
Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis - Element A valuing the FMV of acquired property not considered to be part of its cost
7 October 2011 Roundtable, 2011-0412141C6 F - Whether shares of different classes are identical Income Tax Act - Section 47 - Subsection 47(1) otherwise identical shares are different if they have different stated capital
7 October 2011 Roundtable, 2011-0412031C6 F - Options, vente à découvert Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) CRA needs to examine the agreements implementing a cashless exercise arrangement to comment on the consequences
7 October 2011 Roundtable, 2011-0408251C6 F - REER, règle d'attribution, retenues à la source Income Tax Act - Section 146 - Subsection 146(8.3) s. 146(8.3) applied since not yet separated at time of withdrawal even though withholding for account of spouse
Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(j) application of s. 153(1)(j) not affected by application of s. 146(8.3)
7 October 2011 Roundtable, 2011-0411961C6 F - Dépenses de déplacement Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) s. 6(6)(b)(i) extended to a temporary foreign principal place of residence
7 October 2011 Roundtable, 2011-0413281C6 F - Avantage à un actionnaire et assurance-vie Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) benefit where corporation switches the life insurance policy beneficiary to a shareholder may not be based on premiums paid if death impending
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

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