Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-09-10 28 June 2010 External T.I. 2010-0361561E5 F - Programme d'aide au développement international Income Tax Regulations - Regulation 3400 exclusion for international aid program
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(iii) ordinary resident apparently eligible for the exclusion on overseas posting re international aid program
27 July 2010 External T.I. 2010-0364841E5 F - Questions relatives à une séparation Income Tax Act - Section 63 - Subsection 63(3) - Supporting Person no supporting person where two spouses lived separate and apart under same roof
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) two separated spouses living under the same roof required to agree on which one claims the s. 118(1)(b) credit
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(a) joint payment of expenses incurred under the same roof did not preclud two separated spouses living “separate and apart”
28 June 2010 External T.I. 2009-0350241E5 F - Crédit d'impôt pour investissement du Québec Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(vi) Quebec investment tax credit is deducted under s. 13(7.1) rather than included under s. 12(1)(x)
Income Tax Act - Section 13 - Subsection 13(7.1) - Paragraph 13(7.1)(f) Quebec investment tax credit reduces capital cost at end of year for which it is claimed, excepting any carryforward portion
Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance Quebec investment tax credit is government assistance
26 July 2010 External T.I. 2010-0364721E5 F - Revenus de bien et d'entreprise Income Tax Act - Section 18 - Subsection 18(12) bed and breakfast operation was business rather than property source (and thus subject to s. 18(12) limitation) since more than normal essential services provided
Income Tax Regulations - Regulation 1100 - Subsection 1100(14) rental property restriction rule applies to business properties as well/"principally" references over 50% of the time
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit reduction of personal expenses is not the pursuit of profit
19 August 2010 External T.I. 2009-0344111E5 F - Résidence Société Capital-Risque - Conv Can-France Treaties - Income Tax Conventions - Article 4 French venture capital corporation is resident in France (“liable to tax”) notwithstanding that it has elected to be exempt on its portfolio gains
27 July 2010 External T.I. 2009-0347471E5 F - Déduction pour amortissement - Catégorie 52 Income Tax Regulations - Regulation 1104 - Subsection 1104(2) - General-Purpose Electronic Data Processing Equipment PDA qualified as Class 52 property
7 June 2010 Internal T.I. 2009-0351031I7 F - Faillite changée en proposition Income Tax Act - Section 128 - Subsection 128(2) - Paragraph 128(2)(g) - Subparagraph 128(2)(g)(iii) court approval of consumer proposal and individual’s discharge was not a s. 128(2)(g) unconditional discharge, so that individual thereafter could apply unused tuition tax credits
17 August 2010 External T.I. 2010-0367371E5 F - Fin d'un usufruit - résidence principale Income Tax Act - Section 248 - Subsection 248(3) dissolution of s. 248(3) trust when the usufructuaries renounced their right of usufruct
Income Tax Act - Section 54 - Principal Residence - Paragraph (a.1) usufructuary parents were specified beneficiaries based on their inhabiting the housing unit
Income Tax Act - 101-110 - Section 107 - Subsection 107(2.01) deemed s. 248(3) trust that dissolved when the usufructuary parents renounced their, makes a s. 107(2.01) or (2.001) to apply principal residence exemption to dissolution gain
2010-08-27 13 August 2010 External T.I. 2010-0359571E5 F - Crédit d'impôt étranger Income Tax Act - Section 126 - Subsection 126(1) foreign withholding tax is borne by the copyright holder rather than the Cdn. selling agent
2010-08-13 6 August 2010 External T.I. 2010-0364091E5 F - Utilisation d'un véhicule fourni par l'employeur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) benefit even if the vehicle is made available for responding quickly to an emergency
19 May 2010 Internal T.I. 2008-0279441I7 F - Canadian-controlled private corporation Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (a) future acquisition right under a USA of 50% Canadian shareholder gave its non-resident shareholder de jure control of underlying corporation
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) future acquisition right under a USA gave indirect 50% non-resident shareholder de jure control
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

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