Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-05-27 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
Income Tax Act - Section 146.01 - Subsection 146.01(3) timing of HBP balance reduction
14 March 2011 External T.I. 2010-0382091E5 F - Revenu d'entreprise exploitée activement Income Tax Act - Section 9 - Nature of Income provision of fully-furnished units together with cleaning services generated property rather than business income
13 April 2010 External T.I. 2010-0382791E5 F - Logement offert gratuitement à un pasteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) occupation of free housing after ceased to be pastor not taxable if not in exchange for services
29 April 2011 External T.I. 2010-0382221E5 F - Crédit personne à charge et montant pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) payment of support for one month before obtaining custody ousted credit
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) foster child could qualify as “child” of individual having charge of foster family, but not as wholly dependent
11 April 2011 External T.I. 2010-0382181E5 F - Emploi chantier particulier - propriétaire Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) employee can still qualify if lives in a secondary home near the work site
2011-04-29 4 April 2011 External T.I. 2010-0388741E5 F - Société quittant le Canada Income Tax Act - Section 250 - Subsection 250(5.1) no requirement to file Canadian returns following continuance
22 March 2011 Internal T.I. 2010-0387551I7 F - Dépenses - travailleur indépendant Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(i) erotic costumes used on website did not qualify
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) expenses of costumes, breast implants and rejuvenation expenses of erotic website were non-deductible
2011-04-22 8 October 2010 Roundtable, 2010-0373201C6 F - Change of Control and Amalgamation Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) CRA will respect out-of-ordinary course transactions that logically occur between AOC and amalgamation as being effected by predecessor
2011-04-08 30 March 2011 External T.I. 2010-0390591E5 F - Cotisation spéciale General Concepts - Payment & Receipt amounts paid by set-off are both paid even though no movement of funds
Income Tax Act - Section 9 - Timing amounts assessed against the taxpayer by co-owners not deductible until expended on or in the business
Income Tax Act - Section 248 - Subsection 248(16) - Paragraph 248(16)(a) - Subparagraph 248(16)(a)(i) addition for GST and subtraction for ITC
8 October 2010 Roundtable, 2010-0373501C6 F - Al. 212(9)d) proposé - remboursement Income Tax Act - Section 212 - Subsection 212(9) - Paragraph 212(9)(d) need for alteration of 2-year limitation in s. 227(5) in order to recover tax back to 2000
8 October 2010 Roundtable, 2010-0373661C6 F - Calcul de surplus et NIIF Income Tax Regulations - Regulation 5907 - Subsection 5907(2.1) IFRS statements can only be used if prepared in accordance with local laws
8 October 2010 Roundtable, 2010-0373651C6 F - Monnaie fonctionnelle - PCGR et NIIF Income Tax Act - Section 261 - Subsection 261(1) - Functional Currency 3 differences between GAAP and s. 261 determination of functional currency
8 October 2010 Roundtable, 2010-0373531C6 F - Qualification de bien exclu - 95(1) Income Tax Act - Section 95 - Subsection 95(1) - Excluded Property - Paragraph (a) factors relevant to degree of use of licence in active business
2011-04-01 23 March 2011 External T.I. 2010-0382351E5 F - Bourses d'études ou subventions de recherche Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(o) research was conducted in course of doctoral studies, so that expenses thereof non-deductible
12 January 2011 External T.I. 2010-0388821E5 F - Discretionary dividend Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) SIOH where two discretionary-dividend classes potentially allocable fully to class with 100% winding-up participation
Income Tax Act - Section 186 - Subsection 186(2) Opco with voting shares held by individual and prefs held by his Holdco was connected to Holdco
8 October 2010 Roundtable, 2010-0373241C6 F - Acquisition of Control Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(d) question of fact whether somersault transaction results in acquisition of control of a public company
Income Tax Act - Section 256 - Subsection 256(6.1) purpose is to take into account simultaneous control at the various levels
21 March 2011 External T.I. 2010-0375341E5 F - Associé déterminé Income Tax Act - Section 248 - Subsection 248(1) - Specified Member an upper-tier partnership, and potentially a corporate partner, may be actively involved in the partnership
8 October 2010 Roundtable, 2010-0373211C6 F - Butterfly Transaction - Permitted Exchange Income Tax Act - Section 55 - Subsection 55(1) - Permitted Exchange - Paragraph (b) issuance of shares by TC after the DC distribution not relevant to there being “permitted exchange”
Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(b) issuance of shares by TC after the DC distribution without AOC of TC does not engage s. 55(3.1)(b)
23 March 2011 Internal T.I. 2010-0389081I7 F - Disposition of a resource property Income Tax Act - Section 66.2 - Subsection 66.2(5) - cumulative Canadian development expense - Element F proceeds from mineral claims sale included undiscounted deferred cash proceeds, but might exclude share consideration until issued; purchaser’s CEE obligation excluded
Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (a) proceeds included full (undiscounted) deferred cash proceeds, but might exclude share consideration (with volatile market price) until issued

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