Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-07-02 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 - 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)
28 May 2010 External T.I. 2010-0359871E5 F - Déduction pour gain en capital Income Tax Act - Section 110.6 - Subsection 110.6(2.1) deduction available on NAL disposition inter vivos or on death
Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) - Subparagraph 84.1(2)(a.1)(ii) s. 84.1(2)(a.1)(ii) grind where parent claims s. 110.6(2.1) deduction on bequest to child
27 May 2010 External T.I. 2010-0359491E5 F - Programme Agri-investissement Income Tax Act - Section 12 - Subsection 12(10.2) withdrawal from second AgriInvest Fund is property income except for s. 125 purposes
20 May 2010 External T.I. 2009-0352801E5 F - Caractère raisonnable - honoraires de gestion Income Tax Act - Section 67 factors reviewed in considering reasonableness of management fees
19 May 2010 External T.I. 2010-0364761E5 F - Beneficiary not taxed on Part XII.4 tax credit Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) s. 12(1)(x) inapplicable to s. 127.41 credit
Income Tax Act - Section 127.41 - Subsection 127.41(1) Pt XII.4 tax credit is received by the taxpayer respecting Pt XII.4 tax paid by the QET
2010-05-28 30 March 2010 Internal T.I. 2010-0354391I7 F - P.VI.1:Rachat à l'enchère hollandaise modifiée Income Tax Act - Section 248 - Subsection 248(1) - Short-Term Preferred Share - Paragraph (a) - Subparagraph (a)(i) deemed dividends on redemption of common shares tendered under modified Dutch auction came within (a)(i) and (e)(i) FMV exception
General Concepts - Fair Market Value - Shares purchase price established under modified Dutch auction represented the tendered shares’ FMV
19 May 2010 External T.I. 2009-0342651E5 F - Remboursement de dépenses et allocations Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement for employment-related moving expenses, and reimbursement of accommodation and transportation where employee temporarily assigned away from normal home base, not taxable
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) first $650 of allowance to cover moving costs not taxable
Income Tax Act - Section 6 - Subsection 6(23) reimbursement of expenses to obtain a mortgage is included
19 May 2010 External T.I. 2010-0357071E5 F - Crédit d'impôt pour l'achat d'une 1e habitation Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) - Subparagraph (a)(iii) ownership by common-law partner of their home not relevant if they separated before individual’s acquisition of another principal residence
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) allocation of credit between 2 qualifying spouses
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) - Subparagraph (a)(ii) ownership of secondary residence does not disqualify for HBTC
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) - Subparagraph (a)(i) given future intention test, there can be a gap between purchase and home becoming principal residence
2010-05-21 13 May 2010 External T.I. 2009-0328741E5 F - Régime "à prix coûtant majoré" Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan satisfaction of “reasonable risk” condition in IT-339R2 for cost-plus plan
27 April 2010 Internal T.I. 2009-0335761I7 F - REÉR et revenu d'un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 s. 87 exemption did not apply to blatant RPP/RRSP stripping arrangement
Income Tax Act - Section 146 - Subsection 146(10) ss. 146(9) and (10) applicable to RRSP purchase of Coop units at undervalue and loan by Coop to annuitant
2010-05-14 5 May 2010 External T.I. 2010-0359791E5 F - Significant increase - redemption of shares Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3)(a)(ii) or (v) likely applicable where related shareholder’s prefs are partially redeemed - even if matching partial redemption of arm’s length pref shareholder 1 hr later
Income Tax Act - Section 86 - Subsection 86(1) s. 86 reorg where exchange of common for prefs followed by subscription for (old) commons
13 May 2010 External T.I. 2009-0343971E5 F - Société de services pour les professionnels Income Tax Act - Section 67 deductibility of management fees paid by professional practice to services corporation

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