Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-07-29 18 July 2011 External T.I. 2010-0370561E5 F - Location avec option d'achat Income Tax Act - Section 68 where lease is coupled with bargain purchase option, a portion of the rents must be allocated to option proceeds
21 July 2011 External T.I. 2010-0359171E5 F - Montants forfaitaires - retraités Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit payment in lieu of cancelled term life insurance policy made to employee’s estate is death benefit – but s. 6(4) or 6((1)(a) income if paid before retired employee’s death
Income Tax Act - Section 6 - Subsection 6(4) amount in lieu of cancelled term life insurance proceeds paid to retired employee included under s. 6(4) or 6((1)(a)
6 July 2011 Internal T.I. 2010-0357461I7 F - CII RS&DE Income Tax Act - Section 127 - Subsection 127(8.3) proportionate ITCs allocated to specified member in proportion to capital can then be reallocated under s. 127(8.3) to non-specified member
27 June 2011 External T.I. 2009-0350501E5 F - Gains et pertes sur change étranger Income Tax Act - Section 39 - Subsection 39(2) s. 39(2) gain or loss on USD-denominated purchase arises between acquisition and payment date
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) s. 39(2) gain or loss does not affect CDA until year end
26 May 2011 External T.I. 2010-0354921E5 F - 212(1)d)(vi) - Exemption redevance droit d'auteur Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) there now is a blanket exemption for all royalties (including lump sum advances for performances of a play) respecting copyright
19 July 2011 External T.I. 2010-0386411E5 F - Régime collectif d'assurance-salaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) - Subparagraph 6(1)(f)(v) contribution deduction is restarted with new employer
2011-07-22 11 July 2011 External T.I. 2010-0367021E5 F - Cotisations excédentaires au REER Income Tax Act - Section 204.2 - Subsection 204.2(1.2) a taxable RRSP withdrawal reduces undeducted RRSP premiums and, as a result, the cumulative excess amount in respect of RRSPs
Income Tax Act - Section 204.1 - Subsection 204.1(2.1) s. 204.1(2.1) tax ceases when, at the end of the month, there is no cumulative excess amount in respect of RRSPs
13 July 2011 External T.I. 2011-0400951E5 F - Alinéa 73(1.01)b) - régime de séparation de biens Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) s. 73(1.01)(b) can apply to a transfer occurring pursuant to an ancillary agreement
2011-07-15 4 July 2011 External T.I. 2010-0380071E5 F - Reer au décès Income Tax Act - Section 146 - Subsection 146(1.1) factors relevant to determining financial dependence
Income Tax Act - Section 146 - Subsection 146(1) - Benefit - Paragraph (a) not a taxable “benefit” to non-annuitant if included in annuitant’s income under s. 146(8.8
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

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