Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-10-15 14 June 2010 Internal T.I. 2010-0366611I7 F - Determination of CCPC Status General Concepts - Agency application of Kinguk Trawl test of agency
Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (b) agreement was not a USA since it did not contain an outright transfer of the powers of the directors to the shareholders
Income Tax Act - Section 256 - Subsection 256(5.1) non-resident shareholder with 60%+ economic interest, extensive veto rights and responsibility for future funding of R&D work had de facto control
28 September 2010 External T.I. 2010-0375501E5 F - Triplex - Résidence principale Income Tax Act - Section 54 - Principal Residence ordinarily inhabited and co-owned unit in a triplex can qualify
12 August 2010 Internal T.I. 2010-0356781I7 F - Allocation de retraite, indemnité 2091 C.c.Q. Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance compensation paid in lieu of notice generally is a retiring allowance
28 September 2010 External T.I. 2010-0370831E5 F - RAP, acquisition par donation Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (b) HBP available where the home is acquired by way of gift
22 September 2010 External T.I. 2010-0373041E5 F - Résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (e) holding land within ½ hectare area under separate title does not preclude exemption applying to such adjacent land
2010-09-17 7 September 2010 External T.I. 2009-0340861E5 F - Déduction pour amortissement - Catégorie 52 Income Tax Regulations - Regulation 1104 - Subsection 1104(2) - General-Purpose Electronic Data Processing Equipment not "general-purpose electronic data processing equipment" if no ability of user to alter the embedded program
25 August 2010 External T.I. 2010-0374231E5 F - Safe income allocation Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income required to be allocated to prefs and new common shares received on a s. 51 exchange even where the redemption amount of the prefs matched the amount of such safe income
General Concepts - Fair Market Value - Shares Compliance Programs Branch now providing advance guidance on valuation methodology
2010-09-10 12 August 2010 External T.I. 2010-0360171E5 F - Déclaration T-1135 et biens étrangers Income Tax Act - Section 233.2 - Subsection 233.2(1) - Exempt Trust exempt foreign trust definition contains strict conditions
Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (n) Swiss vested benefits account was not exempted
24 August 2010 External T.I. 2010-0354791E5 F - Commission d'un non-résident - 105(1) RIR Income Tax Regulations - Regulation 105 - Subsection 105(1) fee for services performed wholly in UK re sale of Canadian real estate not subject to withholding
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

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