Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2011-03-04 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
8 October 2010 Roundtable, 2010-0373701C6 F - Affectation de paiement par l'ARC Income Tax Act - Section 157 - Subsection 157(1) final payments for year should be sent with remittance vouchers to reduce misapplications
8 October 2010 Roundtable, 2010-0373471C6 F - Actions fictives Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement phantom share analysis is fact sensitive
9 February 2011 Internal T.I. 2010-0388491I7 F - Période de nouvelle cotisation Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(i) extended reassessment period applies only to the carryback year, not the loss year (or carryforward year)
8 October 2010 Roundtable, 2010-0373691C6 F - T4A et T5018 - Honoraires Income Tax Regulations - Regulation 238 - Subsection 238(2) unlike T4A, amounts paid include GST/HST
Income Tax Regulations - Regulation 200 - Subsection 200(1) GST/HST excluded from services payments
8 October 2010 Roundtable, 2010-0373451C6 F - Avantages imposables et limite de 100$ Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) computing $100 per employee limit for office parties etc.
8 October 2010 Roundtable, 2010-0373681C6 F - Production d'une Déclaration T3 Income Tax Regulations - Regulation 204 - Subsection 204(1) no obligation to file T3 where only property is non-income generating s. 75(2) property
Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(c) no penalty for failure to file T3 return
8 October 2010 Roundtable, 2010-0373551C6 F - Transfert entre conjoints et dette assumée Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) whether debt obligation incurred on co-owner’s assumption of other co-owner’s mortgage obligation requires an assessment of the before and after situation
8 October 2010 Roundtable, 2010-0373611C6 F - Certificat avant distribution Income Tax Act - Section 159 - Subsection 159(2) repayment of note to unsecured creditor was a distribution
Income Tax Act - Section 159 - Subsection 159(3) directors of corporate trustee generally are generally not liable under s. 159(3)
8 October 2010 Roundtable, 2010-0373481C6 F - Remboursement de commissions Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) required repayment of sales commission potentially deductible under s. 8(1)(f)
8 October 2010 Roundtable, 2010-0373431C6 F - Montants payés ou payables par une fiducie Income Tax Act - Section 104 - Subsection 104(24) requirements for distributing income in the year pursuant to issuance of unconditional promissory note
8 October 2010 Roundtable, 2010-0373711C6 F - Traitement des avis d'oppositions Income Tax Act - Section 165 - Subsection 165(3) appeals officer will contact the taxpayer unless the objection is granted in full
8 October 2010 Roundtable, 2010-0373601C6 F - Vérification des fiducies familiales Income Tax Act - Section 104 - Subsection 104(24) audit focus on family trusts
8 October 2010 Roundtable, 2010-0373561C6 F - Régime de prestations aux employés et article 7 Income Tax Act - Section 107.1 - Paragraph 107.1(b) EBP rules do not apply where s. 7 applies to the plan
8 October 2010 Roundtable, 2010-0373261C6 F - Choix prévu au paragraphe 184(3) Income Tax Act - Section 184 - Subsection 184(3) permission to late-file a s. 184(3) after an objection has failed might be granted
Income Tax Act - Section 220 - Subsection 220(3.5) no policy to automatically waive penalty where late s. 184(3) election, following failed appeal, is granted
8 October 2010 Roundtable, 2010-0373361C6 F - Gel successoral - société de personnes Income Tax Act - Section 103 - Subsection 103(1.1) s. 103(1.1) could apply to partnership estate freeze
8 October 2010 Roundtable, 2010-0373541C6 F - Mise à part de l'argent après Lipson Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) cash damming still respected following Lipson
8 October 2010 Roundtable, 2010-0373311C6 F - Oeuvres d'artistes étrangers Income Tax Act - Section 54 - Listed Personal Property art work in corporate boardroom is not personal use property, perhaps also where decorates office
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

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