Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-05-06 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
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) deferred share consideration potentially not recognized until issuance
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) full undiscounted amount of future cash consideration to be included as an amount receivable
2011-03-25 16 March 2011 External T.I. 2010-0380571E5 F - Application de 251(5)b)(ii) et 256(1.4)b) Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(ii) s. 251(5)(b)(ii) does not apply where corporation is required to redeem shares of declared fraudster
Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(b) potential application even where no control over triggering of precondition
8 October 2010 Roundtable, 2010-0370481C6 F - Don, vente d'actions acquises en vertu 7(1) Income Tax Act - Section 110 - Subsection 110(2.1) donation funded with proceeds of short hedge put on immediately on s. 7 exercise does not qualify
Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.01) cashless exercise does not satisfy ss. 110(2.1) and 110(1)(d.01)
8 October 2010 Roundtable, 2010-0371901C6 F - avantage à l'actionnaire, assurance-vie Income Tax Act - Section 246 - Subsection 246(1) CRA will examine if there is a s. 246(1) benefit where subsidiary is beneficiary of life insurance policy held and paid for by parent
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) reimbursement by sub of premiums potentially includible under s. s. 12(1)(x) where it is the beneficiary of life insurance policy held by parent
3 March 2011 External T.I. 2010-0379181E5 F - Jeux de hasard sur Internet Income Tax Act - Section 248 - Subsection 248(1) - Business on-line poker winnings would be non-taxable if absence of conduct of serious business person
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit on-line poker winnings generally non-taxable
8 October 2010 Roundtable, 2010-0371921C6 F - RPA et RPDB - Montants versés à une succession Income Tax Act - Section 104 - Subsection 104(13.1) partial s. 104(13.1) designation can be made
Income Tax Regulations - Regulation 103 - Subsection 103(4) lump sum paid out of RPP to estate for adult children is subject to withholding for account of estate
15 March 2011 Internal T.I. 2011-0394091I7 F - Rev imp. gagné dans une province par une société Income Tax Regulations - Regulation 402 - Subsection 402(3) allocation of taxable income takes into account PEs of partnership in partnership year ending in taxpayer’s year
Income Tax Regulations - Regulation 402 - Subsection 402(6) if first taxation year of partnership ends after the taxpayer’s year, no immediate impact of the partnership’s PEs on taxpayer’s taxable income allocation
8 October 2010 Roundtable, 2010-0370501C6 F - Options, don, coût moyen, PBR Income Tax Act - Section 7 - Subsection 7(1.31) taxpayer who does not make the s. 7(1.31) identification is subject to s. 7(1.3)

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