Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-07-08 24 June 2011 External T.I. 2011-0409741E5 F - Déductions d'impôt sur une bourse de recherche Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(o) assistance received by unenrolled student towards Ph.D. thesis research assistance was a research grant under s. 56(1)(o)
Treaties - Income Tax Conventions - Article 20 assistance received by unenrolled Chinese student towards Ph.D. thesis research assistance was Treaty-exempt
2011-07-01 10 June 2011 Roundtable, 2011-0404641C6 F - Shareholders Agreement and FMV General Concepts - Fair Market Value - Shares examples of clauses reducing the FMV of freeze preferred shares
Income Tax Act - Section 86 - Subsection 86(1) freeze preferred shares must not have a clause that impairs their FMV, e.g., retractability for a NIB term note
2 March 2011 External T.I. 2010-0378071E5 F - CIFM - Quadriporteur Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(i) scooter can qualify as “wheelchair” where it is acquired in lieu of one
22 June 2011 External T.I. 2010-0387391E5 F - Allocations pour véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) allowance taxable (but s. 8(1)(h.1) deduction) where 2 different rates
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) employees entitled to s. 8(1)(h.1) deduction where they received an allowance that was taxable under s. 6(1)(b)(x)
2011-06-24 15 June 2011 Internal T.I. 2011-0405501I7 F - Withholding - stock option benefits Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) withholding obligation extends to stock option benefits
Income Tax Act - Section 153 - Subsection 153(1.1) it is up to employer to find a solution for need to withhold from s. 7 benefits
8 October 2010 Roundtable, 2010-0371911C6 F - Biens dévolus au conjoint Income Tax Act - Section 70 - Subsection 70(6) no rollover for bequested shares that had to be sold to satisfy estate debts
9 June 2011 External T.I. 2011-0393331E5 F - Frais de déplacement - principal lieu d'affaires Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) travel between home office used for back office and 20% of client meetings and other office was personal
10 June 2011 Roundtable, 2011-0404621C6 F - Rectification order in Québec General Concepts - Rectification & Rescission CRA awaiting resolution of AES and Riopel cases
9 June 2011 Internal T.I. 2011-0396721I7 F - Déduction - habitants de régions éloignées Income Tax Act - 101-110 - Section 110.7 - Subsection 110.7(1) regular absences of 8 days on a 43-day cycle did not interrupt “residence” in zone
2011-06-17 7 June 2011 Internal T.I. 2011-0397921I7 F - Financement inter-sociétés Income Tax Act - Section 15 - Subsection 15(2.1) notwithstanding Gillette, a connected “person” may include a partnership
Income Tax Act - Section 227 - Subsection 227(6.1) refund of withholding tax on repayment of loan
Income Tax Act - Section 80.4 - Subsection 80.4(3) - Paragraph 80.4(3)(b) s. 80.4 would not apply to a s. 15(2) loan if it is not repaid
9 June 2011 Internal T.I. 2011-0395001I7 F - Co-propriété indivise d'un duplex Income Tax Act - Section 54 - Principal Residence - Paragraph (a) 2 equal co-owners of duplex could each claim the principal residence exemption for “their” unit
General Concepts - Fair Market Value - Land although each 50% co-owner of a duplex has an undivided interest in the whole dwelling, the FMV of her interest relates exclusively to the housing unit occupied by her
General Concepts - Ownership co-ownership interest is in the whole but valuation of the part occupied should reflect rights of exclusive possession
2011-06-10 30 May 2011 External T.I. 2011-0393731E5 F - Congrès Income Tax Act - Section 20 - Subsection 20(10) taxpayer need not be a member of the convention-sponsoring organization
2011-06-03 18 May 2011 Internal T.I. 2010-0380391I7 F - Convention entre des co-propriétaires Income Tax Act - Section 9 - Nature of Income agreement of co-owners to share revenues disproportionately would be recognized if such agreement is binding
25 May 2011 Internal T.I. 2011-0395871I7 F - Pension alimentaire - désignation rétroactive Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount monthly interim amounts retroactively declared to be support were “support amounts” in contrast to subsequently declared arrears support
24 May 2011 External T.I. 2010-0387741E5 F - Revenu d'entreprise exploitée activement Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business corporation renting out trailers earned other business income rather than income from property given level of services provided
19 May 2011 External T.I. 2011-0405431E5 F - RPDB et feuillet T4 Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) no T4 reporting for employer DPSP contribution
Income Tax Regulations - Regulation 8301 - Subsection 8301(2) T4 reporting by DPSP employer of pension adjustment
Income Tax Act - Section 147 - Subsection 147(10.3) T4 reporting-treatment of DPSP benefit to s. 147(2)(k.2) persons
2011-05-27 20 May 2011 External T.I. 2011-0394391E5 F - Tuition Tax Credit Income Tax Act - Section 118.5 - Subsection 118.5(3) - Paragraph 118.5(3)(c) - Subparagraph118.5(3)(c)(ii) costs of laptops purchased pursuant to bundled purchase program did not qualify
18 May 2011 External T.I. 2011-0392441E5 F - Outils - déduction pour amortissement Income Tax Regulations - Schedules - Schedule II - Class 12 - Paragraph (c) small tools were Class 12 assets rather than currently deductible
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) CCA claim was to be proportionately reduced based on personal use percentage
2011-05-20 9 May 2011 External T.I. 2010-0384711E5 F - Avantages imposables Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) ATV allowance for foreman’s supervisory use was taxable
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) allowance for gasoline expenses of forestry tree trimmers were taxable – limited exception for non-receipted reimbursement of safety equipment
11 May 2011 External T.I. 2011-0394231E5 F - Subsections 14(1.01) and 85(1) - Quotas Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) milk quotas could be segregated between those eligible for capital gains deduction and those transferred on rollover basis
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(a) otherwise-fungible milk quotas could be segregated on the basis of their tax characteristics
9 May 2011 Internal T.I. 2011-0399531I7 F - Computation of safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) non-capital loss that resulted from immediate recognition of expenses but deferral of WIP on construction contracts effected an immediate SIOH reduction
2011-05-13 6 May 2011 External T.I. 2011-0399491E5 F - Withholding - stock option benefits Income Tax Act - Section 153 - Subsection 153(1.1) CRA may consider source deductions issue in rulings context
28 April 2011 Internal T.I. 2011-0394301I7 F - Obligation de l'employeur - feuillet T4 modifié Income Tax Regulations - Regulation 200 - Subsection 200(1) procedure for correcting T4 slips
Income Tax Act - Section 152 - Subsection 152(4.2) procedure for employee to request correction of incorrectly reported T4 benefit
9 May 2011 External T.I. 2010-0385211E5 F - Entreprise habituelle de prêt d'argent Income Tax Act - Section 15 - Subsection 15(2.3) loans to shareholders at prescribed rate could be part of regular money-lending business
2 May 2011 External T.I. 2011-0392661E5 F - T2 Sched. 3 Reporting of Dividend Paid to a Trust Income Tax Act - 101-110 - Section 104 - Subsection 104(19) dividend paid to trust which then is flowed through to corporate beneficiary is reported as paid to person other than connected corporation
2011-05-06 25 February 2011 External T.I. 2010-0387991E5 F - RAP, intention, lieu principal de résidence Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (a) test is one of intention at withdrawal time and not whether closing actually occurred

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