Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-03-04 8 October 2010 Roundtable, 2010-0373311C6 F - Oeuvres d'artistes étrangers Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(e) foreign art work decorating corporate offices is non-depreciable
Income Tax Act - Section 15 - Subsection 15(1) art used to decorate the office of a shareholder-employee generally does not generate a s. 15(1) benefit
2011-02-25 8 February 2011 External T.I. 2011-0392401E5 F - Crédit d'impôt pour frais médicaux Income Tax Act - Section 118.4 - Subsection 118.4(2) expenses of Quebec massage therapists were ineligible
8 October 2010 Roundtable, 2010-0373141C6 F - Related corporations Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) CRA would require demonstration that 4 individuals owning Opco A and B in the same proportions did not act in concert
8 October 2010 Roundtable, 2010-0373161C6 F - Paragraphs 256(3) and 256(6) ITA Income Tax Act - Section 256 - Subsection 256(6) application could prevent acquisition of control or preclude loss of CCPC status
8 October 2010 Roundtable, 2010-0373191C6 F - Computation of safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) where interest in partnership holding Subco with safe income is rolled into Holdco for prefs, dividends from Subco do not change consolidated SIOH of prefs – or increase commons’ SIOH
1 February 2011 External T.I. 2010-0386621E5 F - Prélèvement et conservation de cellules souches Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) stem cell harvesting and storage costs ineligible as not relating to an existing medical condition
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(o) stem cell harvesting and storage costs ineligible as do not assist in diagnosis etc.
2011-02-18 8 October 2010 Roundtable, 2010-0373131C6 F - Présomption d'action concertée Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) Q of fact re whether 3 or more CCPC shareholders form a group
24 January 2011 Internal T.I. 2010-0389251I7 F - Farm-out agreement and warrants Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (j) CEE to be incurred under simple farmout reduced by an allocation to warrants issued by farmee
Income Tax Act - Section 15 - Subsection 15(1) valuation of “free” warrants issued as part of a simple farmout agreement determined based on what would be a s. 15(1) benefit
General Concepts - Fair Market Value - Options amount allocated out of consideration to “free” warrants based on the greater of their trading and in-the-money value
Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (f) application of farmout policy to situation where free warrants issued along with incurring of CEE
9 December 2010 Internal T.I. 2010-0371741I7 F - Automobiles mises à la disposition des employés Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) employer-provided automobile to attend occasional off-site meetings did not generate a benefit
Income Tax Act - Section 248 - Subsection 248(1) - Automobile qualification as automobiles turns on design, not use
2011-02-11 12 January 2011 Internal T.I. 2010-0375801I7 F - Bien agricole admissible détenu avant 1987 Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) - Subparagraph 110.6(1.3)(c)(ii) lands of widow analyzed on a cadastral lot-by-lot basis, so that only those that had been used by deceased husband in farming qualified
Income Tax Act - Section 248 - Subsection 248(1) - Property property status of Quebec lands divided into cadastral lots was analyzed on a lot-by-lot basis
24 January 2011 Internal T.I. 2010-0390111I7 F - GRIP Computation and Taxable Income for M&P Credit Income Tax Act - Section 89 - Subsection 89(7) income for M&P purposes not taken into account for purposes of the calculation
2011-02-04 16 December 2010 Internal T.I. 2010-0380461I7 F - Cotisations versées à régime d'assurance-salaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) - Subparagraph 6(1)(f)(v) any net benefit under wage replacement plan to be reported by employer on T4 unless it has no control
11 January 2011 External T.I. 2010-0385231E5 F - Class 43.2 Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(xiii) digester producing gas from municipal sludge for thermal production could qualify
Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) biomass boiler using wood chips from poplars grown by taxpayer did not qualify
7 January 2011 Internal T.I. 2010-0382411I7 F - Rénovation - dépenses courantes ou en capital Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense repairing damages occurring during major renovation was on income account
5 January 2011 Internal T.I. 2010-0386951I7 F - Résident temporaire - PFCE Income Tax Act - Section 122.6 - Eligible Individual tax residency is referred to in (a) but not in (e)(ii)
14 January 2011 Internal T.I. 2010-0383261I7 F - Fin d'exercice d'une société de personnes Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(b)) - Subparagraph 249.1(1)(b)(ii) s. 249.1(1)(b)(ii) trumps CRA discretion under s. 249.1(7)
Income Tax Act - Section 249.1 - Subsection 249.1(7) CRA could under s. 249.1(7) authorize changed partnership year ends that did not extend beyond calendar year limitation in 249.1(1)(b)(ii)
15 December 2010 External T.I. 2009-0349911E5 F - Calcul du PBR d'une participation dans une SEC Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) no ACB bump for gains realized in the year until Day 1 of following year
Income Tax Act - Section 40 - Subsection 40(3.1) withdrawal equalling capital gain realized in year by LP triggered negative ACB gain to limited partner
2011-01-28 7 January 2011 Internal T.I. 2010-0387011I7 F - DPA dans une année prescrite Income Tax Act - Section 152 - Subsection 152(4) tax from s. 152(4)(a)(i) reassessment of statute-barred year could not be offset through increased CCA claims for that year
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims CCA claims could not be increased in “open” year to generate loss for carryback to year CRA had reassessed outside the normal reassessment period
5 January 2011 Internal T.I. 2010-0389761I7 F - Application du paragraphe 162(7.01) Income Tax Act - Section 162 - Subsection 162(7.01) s. 162(7.01) penalty is cumulative with (7.02). and is computed aggregating base and summary slips and both are computed from initial final deadline if s. 220(3) deadline is missed
7 January 2011 Internal T.I. 2010-0389181I7 F - Paiement forfaitaire - pension alimentaire Income Tax Act - Section 56.1 - Subsection 56.1(4) lump sum support payment did not qualify
2011-01-07 1 December 2010 External T.I. 2010-0385491E5 F - Postes isolés dans la fonction publique Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan employer agreement to pay transportation costs from remote location re medical appointments could qualify as an exempt PHSP
2010-12-31 9 December 2010 External T.I. 2010-0364001E5 F - Ristourne de consommation, feuillet T4A Income Tax Act - Section 135 - Subsection 135(7) no income inclusion re consumer goods or services
Income Tax Regulations - Regulation 218 T4A required where annual payments in proportion to patronage exceed $500
2010-12-24 9 December 2010 External T.I. 2010-0388101E5 F - CCPC status and acquisition of control Income Tax Act - Section 249 - Subsection 249(4) - Paragraph 249(4)(b) CCPC whose control has been agreed to be acquired by Pubco can elect to extend its deemed s. 249(3.1) year end under s. s. 249(4)(b)
Income Tax Act - Section 249 - Subsection 249(3.1) CCPC which has a December 26 deemed year end under ss. 249(3.1) and 251(1)(b) that is extended to December 31 under s. 249(4)(b) loses SBC for that extended year
7 December 2010 External T.I. 2010-0363431E5 F - Date limite cotisation REER Income Tax Act - Section 146 - Subsection 146(5) 60-day contribution deadline is met based on receipt of cheque by issuer, not its deposit
General Concepts - Payment & Receipt RRSP premium “paid” when cheque received by issuer, not when it’s deposited
2010-12-17 2 December 2010 External T.I. 2010-0376451E5 F - Paragraphe 69(11) et transfert de biens agricoles Income Tax Act - Section 70 - Subsection 70(9) s. 70(9.01) could apply to devise of farming property, that was farmed by father but not sons, to them
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) capital gains exemption could apply where farming property, that was farmed by father but not sons, is devised to sons who then sell

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