Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-03-25 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(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
8 October 2010 Roundtable, 2010-0373641C6 F - frais juridiques engagés par des conjoints de fait Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal costs incurred by common-law partners to negotiate support are non-deductible
8 October 2010 Roundtable, 2010-0373621C6 F - Utilisation abusive des fiducies familiales Income Tax Act - Section 245 - Subsection 245(4) examples of the abusive use of family trusts engaging GAAR
14 September 2010 External T.I. 2010-0372631E5 F - Bien agricole admissible Income Tax Act - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(b) condition could be satisfied by husband for two-year period before his decease
23 February 2011 External T.I. 2010-0389701E5 F - Sommes versées en règlement de griefs Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance retiring allowance includes compensation for renunciation of reinstatement of employment
11 February 2011 External T.I. 2010-0386651E5 F - Admissibilité - Frais médicaux Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(o) pathology expenses paid to physician would qualify
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) preliminary report of genetic counsellor would not qualify
8 October 2010 APFF Roundtable, 2010-0373301C6 F - Classes of shares with identical characteristics Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital identical but separate QBCA classes would have separate PUC
Income Tax Act - Section 47 - Subsection 47(1) shares of identical but separate QBCA classes are identical properties unless their PUC rights differ
8 October 2010 APFF Roundtable Q. 11, 2010-0373281C6 F - Redemption of shares and eligible dividend Income Tax Act - Section 89 - Subsection 89(14) specific dollar amount required for regular dividends, but not for deemed dividend
2011-03-04 8 October 2010 Roundtable, 2010-0373251C6 F - Immeuble détenu par une société Income Tax Act - Section 15 - Subsection 15(1) determining the "normal rate of return" used in computing imputed rent
8 October 2010 Roundtable, 2010-0373401C6 F - Fiducies et ajout d'un bénéficiaire Income Tax Act - Section 248 - Subsection 248(1) - Disposition court-approved addition of a beneficiary will result either in a part disposition of trust interests, or a constructive dissolution and resettlement of the discretionary trust
Income Tax Act - Section 116 - Subsection 116(1) court-approved addition of beneficiary to discretionary resident trust with TCP generates s. 116 obligations re resulting trust interest dispositions
8 October 2010 Roundtable, 2010-0373351C6 F - Évaluation d'une clause restrictive Income Tax Act - Section 56.4 - Subsection 56.4(2) valuation of covenant of individual vendor not to compete or solicit employees
8 October 2010 Roundtable, 2010-0373371C6 F - Souscription des unités d'une SEC Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) subscription for units of an underwater LP represented a contribution of capital
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) subscription for units of an underwater LP represented an acquisition whose deemed cost was nil
8 October 2010 Roundtable, 2010-0373721C6 F - Divulgation volontaire Income Tax Act - Section 220 - Subsection 220(3.1) repeal of 38% rule (re tax rate on repatriated funds) in December 2008
3 February 2011 External T.I. 2010-0389601E5 F - Allocation de transport Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit allowance from school in “consideration” for arranging child transport was non-taxable

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