Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-04-01 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)
Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.01) not identifying gifted shares under s. 7(1.31) could result in s. 110(1)(d.01) not being satisfied
8 October 2010 Roundtable, 2010-0371951C6 F - Transfert d'un REER ou d'un FERR au décès Income Tax Act - Section 248 - Subsection 248(23.1) - Paragraph 248(23.1)(b) s. 248(23.1)(b) does not allow the annuitant to share with the annuitant’s deceased spouse
Income Tax Act - Section 146.3 - Subsection 146.3(6) s. 146.3(6) does not apply as a result of death of non-annuitant spouse
8 October 2010 Roundtable, 2010-0370491C6 F - Don d'actions Income Tax Act - Section 118.1 - Subsection 118.1(5) gift of shares is not made by will where the number of gifted shares is subject to a tax-reduction direction to be applied in executors’ discretion
8 October 2010 Roundtable, 2010-0378521C6 F - Déduction des primes d'assurance frais généraux Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose pro rata deduction of premiums for overhead expense insurance policy where other risks are also covered
8 October 2010 Roundtable, 2010-0371961C6 F - Époux et conjoint de fait et CÉLI au décès Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (d) - Subparagraph (d)(iii) CRA will itself allocate where a surviving spouse and common-law partner designate more than the exempt contribution amount for one survivor scenario
22 March 2011 External T.I. 2010-0391131E5 F - Gains ouvrant droit à pension - RPC/RRQ Income Tax Regulations - Regulation 200 - Subsection 200(1) zero should be entered in Box 26 re QPP if employee under 18
2011-03-18 3 March 2011 External T.I. 2010-0381851E5 F - Ajustements salariaux rétroactifs Income Tax Act - Section 110.2 - Subsection 110.2(1) - Qualifying Amount - Paragraph (a) - Subparagraph (a)(i) retroactive pay adjustments negotiated to comply with the Quebec Pay Equity Act but not paid pursuant to it were not qualifying amounts
Income Tax Regulations - Regulation 201 - Subsection 201(1) - Paragraph 201(1)(a) interest on retroactive pay awards “is” reported on T5s
2 March 2011 External T.I. 2010-0377321E5 F - Jeux de hasard sur Internet Income Tax Act - Section 9 - Exempt Receipts/Business on-line internet gambling winnings non-taxable if no business
3 March 2011 Internal T.I. 2010-0387281I7 F - Déduction - personnel des Forces canadiennes Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) member of the Canadian Forces is an officer or non-commissioned member who is a member of the Regular or Reserve Force
3 March 2011 External T.I. 2010-0380751E5 F - Déduction accordée aux petites entreprises Income Tax Act - Section 125 - Subsection 125(1) general discussion of SBD referencing IT-73R6, IT-458R2
2011-03-11 8 October 2010 Roundtable, 2010-0373461C6 F - Retrait d'une société de personnes Income Tax Act - Section 40 - Subsection 40(3) negative ACB realized pro rata as units are redeemed
Income Tax Act - Section 100 - Subsection 100(2) negative ACB realized pro rata under s. 100(2) as portion of the units are redeemed each year
Income Tax Act - Section 43 - Subsection 43(1) all the partner’s units are a single property
Income Tax Act - Section 248 - Subsection 248(1) - Property partnership unit is not separate property from other units
11 February 2011 External T.I. 2010-0377171E5 F - Dépenses engagées à l'égard d'un immeuble locatif Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense renovation expenses to rental unit on capital account if lasting benefit for rental activities generated or an improvement over existing housing units is created
Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate purchase of rental building with intention to resell within a few years generally on income account
8 October 2010 Roundtable, 2010-0373221C6 F - Paid-up capital Income Tax Act - Section 245 - Subsection 245(3) - Paragraph 245(3)(a) transaction can be an avoidance transaction even where the series is motivated by business reasons
Income Tax Act - Section 245 - Subsection 245(4) CRA has concluded in some cases that using PUC averaging to shift PUC to individual shareholders engages GAAR
Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital - Paragraph (a) abusive use of PUC averaging to shift PUC to individuals

Pages