Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-08-13 23 June 2010 Internal T.I. 2010-0368161I7 F - 84.1 Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(b) s. 84.1(2)(b) inapplicable to individual’s transfer of ½ of Opco to Holdco (owned by 3 unrelated individuals) for note and non-voting pref
Income Tax Act - Section 84.1 - Subsection 84.1(2.2) - Paragraph 84.1(2.2)(b) s. 84.1(2.2)(b) group can include a non-voting shareholder
4 August 2010 External T.I. 2009-0330501E5 F - Superficial loss Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(b) - Subparagraph 251.1(1)(b)(ii) X (holding the Opco non-voting shares), and a discretionary trust (holding the Opco voting shares) of which X was a beneficiary, were an affiliated group
2010-08-06 26 July 2010 External T.I. 2009-0349481E5 F - 212(1)d)(i)-Marque de commerce utilisée au Canada Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) royalty for use outside Canada of trademark is subject to withholding
26 July 2010 External T.I. 2010-0368991E5 F - CIAPH - Société de personnes Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home partner is not precluded from claiming HBTC for residence acquired by partnership
7 July 2010 External T.I. 2010-0370611E5 F - Purchase of Shares by Subsidiary - Sec. 245 Income Tax Act - Section 245 - Subsection 245(4) position that an individual potentially can realize a capital gain by selling shares to a Newco sub of the corporation for cash does not depend on there being a s. 87 or 88 merger of Newco and the corporation
Income Tax Act - Section 84.1 - Subsection 84.1(1) realization by an individual of capital gain by selling shares to the corporation’s Newco sub requires inter alia that any basis created in Newco not be abused
28 June 2010 External T.I. 2010-0362391E5 F - Revenus de récompenses Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) awards for winning music competitions might or might not be prescribed prizes
2010-07-30 30 June 2010 External T.I. 2009-0327881E5 F - FFCP Délai de production T3 Income Tax Regulations - Regulation 204 - Subsection 204(2) s. 132.1 merger accelerates T3 return-filing deadline
Income Tax Act - Section 220 - Subsection 220(3) requirements for application to extend T3 filing deadline following s. 132.1 merger
Income Tax Regulations - Regulation 204.1 - Subsection 204.1(2) no requirement to file with CDS if MFT is not listed
2010-07-23 14 July 2010 External T.I. 2010-0361431E5 F - Usage d'une automobile fournie par l'employeur Income Tax Act - Section 6 - Subsection 6(2) days include all those where the employee has the keys, including on weekends
2010-07-16 24 June 2010 External T.I. 2010-0358981E5 F - Déductibilité de dépistage de la XXXXXXXXXX Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose expense of bacteria testing can be deductible even though expenditures do not themselves generate revenue
11 May 2010 External T.I. 2009-0339151E5 F - Paragraphe 44.1 - " actions de remplacement Income Tax Act - Section 44.1 - Subsection 44.1(1) - Replacement Share replacement share not required to continue to be of an eligible small business corporation after its issue
2010-07-09 21 June 2010 External T.I. 2010-0355971E5 F - Montants versés à des administrateurs Income Tax Act - Section 81 - Subsection 81(3.1) potential exclusion for part-time directors who receive travel allowance for travel to out-of-region board meetings
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) payment of accommodation, travel and meal expenses for attending directors’ meeting out of the region likely not a benefit, but tickets to events likely taxable
28 June 2010 External T.I. 2010-0357081E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 252 - Subsection 252(3) HRTC administrative exception that separated spouses are not treated as spouses
Income Tax Act - Section 118.04 - Subsection 118.04(1) - Eligible Dwelling - Paragraph (b) ordinary inhabitation can commence at the end of the eligible period
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense home renovation expenses generally considered to be incurred by the individual even where reimbursed by insurance company
2010-07-02 21 May 2010 External T.I. 2009-0352221E5 F - Bien de remplacement- résidence principale Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) replacement property rules re involuntary disposition of secondary residence in country could apply to replacement property in city
14 May 2010 External T.I. 2009-0323151E5 F - Cross Border Stock Option Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) - Subparagraph 128.1(1)(b)(iv) individual fully taxable on s. 7 benefit without carve-out for portion that had accrued prior to immigration to Canada
23 June 2010 External T.I. 2010-0365581E5 F - Règles d'attribution de l'article 74.2 Income Tax Act - Section 74.5 - Subsection 74.5(1) - Paragraph 74.5(1)(c) s. 74.2(1) inapplicable to transfer at FMV of property to a discretionary family trust, with capital gain on property subsequently distributed to spouse of transferor
Income Tax Act - Section 75 - Subsection 75(2) s. 75(2)(a)(i) is satisfied where a person transferring to a trust holds a capital interest in that trust
17 May 2010 External T.I. 2009-0346011E5 F - Immeuble - Convention Canada - Portugal Income Tax Act - Section 54 - Principal Residence - Paragraph (a) Portuguese home of Canadian resident could qualify for the principal residence exemption
Treaties - Income Tax Conventions - Article 25 no discrimination in Canada taxing a Canadian resident on a Portuguese real estate gain exempted from Portuguese tax
2010-06-25 16 June 2010 External T.I. 2009-0344861E5 F - Actifs de la Catégorie 16 Income Tax Regulations - Schedules - Schedule II - Class 16 - Paragraph 16(e) pick-up trucks leased out on short-term basis but also used as described in (e)(ii) of automobile are in Class 16 - otherwise, Class 10
11 June 2010 External T.I. 2010-0354881E5 F - Traitement fiscal de la FNACC Income Tax Act - Section 20 - Subsection 20(16) ceasing to use a class of depreciable property to generate income results in a terminal loss under ss. 45(1)(a) and 20(16)
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) application of s. 45(1)(a) to film production that ceased to generate income, resulting in a terminal loss under s. 20(16)
2 June 2010 External T.I. 2010-0354951E5 F - Bien de remplacement-disp. involontaire Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) rental building did not qualify as a replacement property to an expropriated parking lot because of different physical attributes
2010-06-18 1 June 2010 External T.I. 2009-0352811E5 F - Frais de transport- chantier particulier Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) allowance paid to car-pooling employees with stopover at employer's establishment could qualify
4 June 2010 External T.I. 2009-0324801E5 F - catégorie 43 Income Tax Regulations - Schedules - Schedule II - Class 43 potential inclusion of moulds and cranes, but not forklift truck
1 June 2010 External T.I. 2009-0333481E5 F - Frais d'aliments et de boissons Income Tax Act - Section 67.1 - Subsection 67.1(1) restaurant meals incurred in restaurant review business subject to 50% rule
9 June 2010 External T.I. 2009-0342081E5 F - Associé déterminé Income Tax Act - Section 248 - Subsection 248(1) - Specified Member trust member of partnership can be actively engaged through the activities of its trustee
Income Tax Act - 101-110 - Section 104 - Subsection 104(1) s. 104(1) imputes the activities of the trustee to the trust for “specified member” purposes
7 June 2010 External T.I. 2009-0331731E5 F - CII et crédit de taxe sur le capital du Québec Income Tax Act - Section 13 - Subsection 13(7.2) Quebec ITCs or capital tax credits reduce the LP’s UCC at end of its October 31 fiscal period following the calendar year in which its partners claimed those credits
2010-06-11 4 June 2010 External T.I. 2010-0358811E5 F - Catégorie d'amortissement d'un moule Income Tax Regulations - Schedules - Schedule II - Class 29 moulds potentially includible in Class 29 or 43
2 June 2010 External T.I. 2009-0343381E5 F - Frais de préposé aux soins Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(b) behavioural and cognitive therapy of autistic child 35 hour per week likely was not “care”
2010-06-04 19 May 2010 External T.I. 2010-0364131E5 F - Issuance - Discretionary shares Income Tax Act - Section 15 - Subsection 15(1) subscription for discretionary shares of Opco might represent a s. 15(1) benefit conferred by Opco on subscriber, or engage s. 69(1)(b) where this is benefit conferred by existing shareholder
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) Kieboom/s. 69(1)(b) rather than s. 15(1) where benefit conferred by shareholder rather than corporation
Income Tax Act - Section 74.1 - Subsection 74.1(1) application of Kiebom to consider interest in corp to have been transferred to spouse could engage s. 74.1(1)

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