Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-03-26 9 February 2010 Internal T.I. 2009-0333571I7 F - Paragraphe 7(1.5) - contrepartie reçue Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(j) ACB increased by s. 7(1) benefit that had not yet been triggered due to s. 7(1.5) rollover
Income Tax Act - Section 116 - Subsection 116(1) s. 116 certificate required even for shares disposed of under s. 7(1.5) rollover
Income Tax Act - Section 7 - Subsection 7(1.4) non-resident ex-employees will be required to recognize s. 7 benefit deferred by s. 7(1.5) when they dispose of the shares acquired in exchange
25 February 2010 External T.I. 2009-0352231E5 F - OBNL, profits, perte de statut, gain en capital Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) holding of surplus funds permissible only for funding a specific project
Income Tax Act - Section 84 - Subsection 84(2) s. 84(2) inapplicable to winding-up of non-share corp
15 March 2010 Internal T.I. 2009-0352731I7 F - Remboursement de rémunération Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) deduction for repayment of amounts received during deferred salary leave period following failure to return to work
2010-03-19 11 March 2010 External T.I. 2009-0345481E5 F - Allocations versées administrateurs bénévoles Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) allowances and travel reimbursements paid by NPO to volunteer directors were non-taxable
Income Tax Act - Section 248 - Subsection 248(1) - Office definition of a “volunteer” (who is excluded from the holder of an “office”)
1 March 2010 Internal T.I. 2009-0346951I7 F - Article XVI-Établissement stable-Province Income Tax Regulations - Regulation 400 - Subsection 400(2) being on concert tour in Canada did not render the various arenas fixed places of business, given lack of “regularity and recurrence”
Income Tax Regulations - Regulation 400 - Subsection 400(2) - Paragraph 400(2)(e) using massive stage equipment for Canadian concerts did not result in deemed PEs given that at each venue under 30 days and in Canada under 90 days
Treaties - Income Tax Conventions - Article 16 Art. XVI of US Convention applicable irrespective of whether a PE
2010-03-12 4 March 2010 Internal T.I. 2009-0337381I7 F - Sens du mot divertissement Income Tax Act - Section 67.1 - Subsection 67.1(1) s. 67.1 limitation does not apply to gifts of equipment used to entertain the recipient
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) gifts of entertainment equipment by taxpayer to an employee of a customer responsible for purchases are includible in that individual’s income
22 December 2009 Internal T.I. 2009-0343331I7 F - Determination of CCPC Status Income Tax Act - Section 220 - Subsection 220(2.2) s. 220(2.2) precluded accepting a late amendment
Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation shareholder agreement affecting how the majority of directors exercised their rights was not a USA
Income Tax Act - Section 256 - Subsection 256(5.1) de facto control given control of financing and significant influence on decisions
4 March 2010 External T.I. 2009-0343851E5 F - Remboursement des cotisations à un club Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursements of employee fitness facility fees are considered principally for employees’ benefit if membership merely improves their performance through increased health
4 March 2010 External T.I. 2009-0348411E5 F - Bâtiment non-résidentiel admissible Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) separate classes and separate letter elections for separate additions to the same non-eligible non-residential building
17 February 2010 Internal T.I. 2009-0348461I7 F - Transfert d'une PCMC à une société mère Income Tax Regulations - Schedules - Schedule II - Class 10 - Paragraph 10(x) full cost of CFVPs acquired by parent from production sub (which claimed the credits) added to Class 10(x)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Current expense vs. capital acquisition fully claimed films productions acquired from production sub on capital account
2010-03-05 19 January 2010 External T.I. 2009-0344681E5 F - Récompenses visées par règlement Income Tax Regulations - Regulation 7700 literary prizes were sufficiently recognized by the general public to be prescribed
23 February 2010 Internal T.I. 2010-0356121I7 F - Avantage imposable - appareils auditifs Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) hearing aid reimbursement was taxable given that employee owned the devices and primarily benefited
2010-02-26 18 March 2008 External T.I. 2008-0265861E5 F - Programme d'aide financière d'urgence ("PAFU") Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) s. 56(1)(u) applied to emergency assistance not based on an income test
Statutory Interpretation - French and English Version English version of s. 56(1)(u), as the broader of the two, was to be preferred
Income Tax Act - Section 153 - Subsection 153(1) no source deductions from social assistance payments
16 February 2010 External T.I. 2009-0322751E5 F - Traitement fiscal des indemnités reçues Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) prejudgment interest included in class action award was tax free
29 January 2010 Internal T.I. 2009-0339541I7 F - Inclusion au revenu et provision Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) advance fees for futures goods-handling services included in income under s. 12(1)(a) rather than s. 9
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) reserve available for future goods handling services to be performed
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense no deduction from prepaid fees of estimated cost of performance
2 February 2010 Internal T.I. 2009-0345741I7 F - Programme d'aide financière d'urgence ("PAFU") Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) social assistance paid without a means, needs or income test was not income to recipient
Income Tax Regulations - Regulation 233 - Subsection 233(2) - Paragraph 233(2)(g) lump sum emergency assistance under Quebec program would not be required to be included in income because no information slip required
16 February 2010 External T.I. 2010-0354801E5 F - CIRD - construction d'un logement Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Renovation credit dependent on timing of renovation expenditures and when moved into home
General Concepts - Ownership individual is considered to become owner of home in construction when it becomes habitable
2010-02-19 3 November 2008 External T.I. 2008-0278431E5 F - Déménagement hors Canada du siège soc. de société Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) OECD Commentary informs allocation of sales through non-resident office to Cdn manufacturing operation
Income Tax Act - Section 250 - Subsection 250(5) central management and control test overridden
Income Tax Act - Section 127 - Subsection 127(9) - Investment Tax Credit - Paragraph (a.1) ITC potentially available to a non-resident corporation carrying on business in Canada
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) s. 4(1)(b) requires allocation between Canada and another country on basis of relative profit contribution
9 February 2010 External T.I. 2009-0316561E5 F - Biens en immobilisations-RS&DE Income Tax Act - Section 127 - Subsection 127(9) - First Term Shared-Use Equipment expected use throughout expected useful life is considered
Income Tax Regulations - Regulation 2900 - Subsection 2900(11) requirement during establishment phase to be used primarily during useful life for SR&ED
13 January 2010 Internal T.I. 2009-0334931I7 F - Demande de changement d'exercice Income Tax Act - Section 249.1 - Subsection 249.1(7) floating fiscal year does not require CRA approval/retroactive change to previous year end to reduce s. 85(8) penalty not permitted

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