Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-11-04 7 October 2011 Roundtable, 2011-0411951C6 F - Retenues à la source - options d'achat d'actions Income Tax Act - Section 153 - Subsection 153(1.01) treatment of net share issuances under review
7 October 2011 Roundtable, 2011-0399401C6 - Butterfly, life insurance policies, grandfathering Income Tax Act - Section 55 - Subsection 55(1) - Distribution CSV of life insurance policy was a cash asset - FMV excess could be an investment asset if no cash-out intention
Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(a) a policy loan under a life insurance policy to reduce its CSV would trigger s. 55(3.1)(a)
Income Tax Act - Section 55 - Subsection 55(4) s. 55(4) inapplicable if the principal reason for parent’s control of DC was parent's economic interests
7 October 2011 Roundtable, 2011-0412041C6 F - Accumulated Profits for 20(1)(c) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) appraisal increment excluded from accumulated profits
7 October 2011 Roundtable, 2011-0411811C6 F - Règlement 1101(5b.1) Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) Reg. 1101(5b.1) election can be made in partnership T5013, or by a partner
7 October 2011 Roundtable, 2011-0412191C6 F - Sec. 86 - Reorganisation of the Capital of a Corp. Income Tax Act - Section 51 - Subsection 51(1) s. 51(1) applies where share conversion pursuant only to directors’ resolution
Income Tax Act - Section 86 - Subsection 86(1) reorganization of capital generally requires articles of amendment
7 October 2011 Roundtable, 2011-0412201C6 F - Art. 160 - dividende en actions suivi d'un rachat Income Tax Act - Section 160 - Subsection 160(1) s. 160 could apply to a stock dividend followed by a redemption of the stock dividend shares
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(4.1) deemed trust applies only to sales proceeds (but such a purchaser does not include a seizing creditor)
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 - 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 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 - 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 - 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

Pages