Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-12-17 5 November 2010 External T.I. 2010-0383871E5 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) could perform “substantially all” employment duties abroad if less than 10% of the time spent in Canada on preparatory work
2010-12-10 2 December 2010 External T.I. 2010-0386581E5 F - CIFM - Traitement pour problème de peau Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(n) drug to treat skin condition qualified
2010-12-03 20 October 2010 External T.I. 2010-0377251E5 F - Canadian Controlled Private Corporation Income Tax Act - Section 89 - Subsection 89(11) s. 89(11) election required to be made before target elected to cease to be a public corp so as to oust s. 249(3.1)
9 November 2010 External T.I. 2010-0380661E5 F - Internal Reorganization Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) two siblingcos, although not related to each other, were related to dividend recipient on spin-off transaction
Income Tax Act - Section 55 - Subsection 55(4) potential application of s. 55(4) where increase of interest of siblings companies is sheltered by control of Father – unless he held his shares to protect his “economic interests”
9 November 2010 External T.I. 2010-0357091E5 F - Prestation fiscale pour le revenu de travail Income Tax Act - Section 122.7 - Subsection 122.7(1) - Eligibile Dependant qualification as an eligible dependant
25 November 2010 External T.I. 2010-0377841E5 F - Catégorie d'amortissement - bateau Income Tax Regulations - Schedules - Schedule II - Class 7 - Paragraph 7(c) “vessel” includes a moored boat without a motor
Statutory Interpretation - Interpretation Act - Section 44 - Paragraph 44(h) “vessel” informed by meaning in replacement Canada Shipping Act
Income Tax Act - Section 13 - Subsection 13(21) - Vessel "vessel" now defined in (replacement) Canada Shipping Act, 2001
22 November 2010 External T.I. 2010-0374861E5 F - Actions - société agricole familiale Income Tax Act - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation - Paragraph (b) test in para. (b) is applied re the use of the property throughout the period of the taxpayer’s ownership
30 September 2010 Internal T.I. 2010-0373901I7 F - Bigamie fiscale - transfert de biens au décès Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(a) s. 70(6)(a) could apply simultaneously to the devise of House A to surviving spouse and of House B to surviving common-law partner
Income Tax Act - Section 40 - Subsection 40(4) - Paragraph 40(4)(b) - Subparagraph 40(4)(b)(i) application of s. 40(4)(b)(i) by both surviving spouse re House A and surviving common-law partner re House B – but not for overlapping years
2010-11-26 7 September 2010 Internal T.I. 2010-0372191I7 F - Société de personnes - partage d'une perte Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(g) “salary” paid to partner was non-deductible and was a capital draw given partnership loss
Income Tax Act - Section 96 salary paid to partner was non-deductible
28 September 2010 External T.I. 2010-0372461E5 F - Exploitation d'une entreprise à perte Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit reasonable expectation of profit test not applied where no personal element
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Goodwill, Trademarks and Customer Lists per Canada Starch, a payment made to preserve goodwill or a business is not a capital expenditure
2010-11-19 4 November 2010 Internal T.I. 2010-0358441I7 F - Indien, avance de salaire Other Legislation/Constitution - Federal - Indian Act - Section 87 salary advance cannot be exempt
Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(a) salary advance is taxable under s. 6(3)
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) salary repayment could generate non-capital loss
Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss s. 8(1)(n) deduction could generate NCL
10 November 2010 External T.I. 2010-0364751E5 F - Frais de repas des camionneurs Income Tax Act - Section 67.1 - Subsection 67.1(1.1) s. 67.1(1.1) extended to apply to trucking employers
2010-11-12 23 September 2010 External T.I. 2010-0364711E5 F - Résidence principale Income Tax Act - Section 54 - Principal Residence basement apartment with independent entrance and separate municipal address was a separate housing unit
24 September 2010 External T.I. 2010-0366661E5 F - Allocations de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) criteria for overtime meal allowances to be non-taxable
28 October 2010 Internal T.I. 2010-0376041I7 F - Contrat d'acquisition ou de location Income Tax Act - Section 6 - Subsection 6(2) - Element E lease where lessee got benefits of ownership even if it didn’t acquire title needed study to determine its true nature
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A lease where lessee got benefits of ownership even if it didn’t acquire title not necessarily a lease
General Concepts - Substance contracts (e.g., leases) generally not recharacterized in the absence of sham
21 September 2010 Internal T.I. 2010-0377011I7 F - Dépenses de vêtements - travailleur indépendant Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) no deduction to self-employed welder for work boots and fire-resistant clothing
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) no CCA for clothing (e.g., work boots) that were not used only in the individual’s business
29 October 2010 External T.I. 2009-0347791E5 F - Somme reçue par une société Income Tax Act - Section 9 - Nature of Income application of judicial definitions of “royalty”
2010-10-29 19 October 2010 External T.I. 2010-0369671E5 F - Révision d'une déduction pour amortissement Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims IC 84-1 applies mutatis mutandis to CCA revisions by partnership
2010-10-22 15 September 2010 Internal T.I. 2010-0371521I7 F - French Version of paragraph 23 in IT-419R Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) correction of French version of "not dealing at arm's length"
13 October 2010 External T.I. 2010-0366801E5 F - Impôt minimum à reporter/réduction d'impôt Income Tax Act - Section 153 - Subsection 153(1.1) AMT balance can be carried forward for use in s. 153(1.1) reduction
28 September 2010 External T.I. 2010-0357141E5 F - Prix de présence et tirages Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) promotional prize as income to employee of third party
Income Tax Act - Section 9 - Nature of Income business income from draw won by brokerage
6 October 2010 External T.I. 2008-0302951E5 F - Stagiaires postdoctoraux Income Tax Act - Section 56 - Subsection 56(3) - Paragraph 56(3)(a) - Subparagraph 56(3)(a)(ii) postdoctoral fellows are ineligible for the full scholarship exemption
12 October 2010 External T.I. 2010-0371931E5 F - T5 Information Returns Income Tax Regulations - Regulation 201 - Subsection 201(4) T5 slip should report Reg. 7000 interest and interest coupon payments net of previous accruals thereof
12 October 2010 Internal T.I. 2010-0355761I7 F - PCMC - Dépense courante ou en capital Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense expenditure on Canadian film production can be current expense if it is only of short-term use
Income Tax Regulations - Regulation 1106 - Subsection 1106(1) - Excluded Production - Paragraph (b) - Subparagraph (b)(i) dealing with a currents topic does not render a program a news program
4 October 2010 External T.I. 2010-0367231E5 F - Convention de partage d'une société de personnes Income Tax Act - Section 103 - Subsection 103(1.1) s. 103(1) or (1.1) could apply to allocation of ordinary income and capital gains on substantially different basis between couple and their corporation
2010-10-15 12 August 2010 External T.I. 2010-0370551E5 F - Tuck Under Transaction - Tremblay Decision Income Tax Act - Section 84 - Subsection 84(2) despite Tremblay, CRA may challenge tuck-under transactions that do more than extract safe income

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