Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-06-04 28 May 2010 External T.I. 2010-0359871E5 F - Déduction pour gain en capital 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
3 May 2010 Internal T.I. 2010-0359631I7 F - Dépenses liées à une résidence non habitée Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(h) ACB addition for property taxes inapplicable where a building on the property
Income Tax Act - Section 54 - Adjusted Cost Base property taxes not added to ACB of inherited property before its sale
4 May 2010 External T.I. 2009-0329391E5 F - Provision pour retour de marchandises Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) no reserve where book publisher’s customers could return unsold books, cf. where a "true" clause for the return of unsold goods
Income Tax Act - Section 9 - Timing no profit required to be recognized on delivery of goods where a "true" return of unsold goods clause
2010-05-07 3 May 2010 External T.I. 2010-0358881E5 F - CIRD - construction d'un logement Income Tax Act - Section 118.04 - Subsection 118.04(1) - Eligible Dwelling - Paragraph (a) qualifying expenditure for property acquired before completion of home’s construction but applied to renovation work after individual moved in
General Concepts - Ownership individual is considered to be owner of home that is being constructed as soon as it is habitable
3 May 2010 External T.I. 2010-0358471E5 F - Capital dividend account - beneficiary of a trust Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (g) capital dividend distributed by trust in its year and designated under s. 104(20) is added to corporate beneficiary’s CDA only at end of trust’s taxation year
21 April 2010 External T.I. 2009-0341711E5 F - Déduction pour gains en capital Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(d) beneficiary of trust partner can access deduction
28 April 2010 External T.I. 2009-0347581E5 F - Frais de formation Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose expense incurred in course of operating real property need not have a direct effect on profit
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training distinction between training and convention expenses/ luncheon seminar fees on case law generally are professional deductions
Income Tax Act - Section 20 - Subsection 20(10) convention expenses providing an enduring benefit may be deducted within the s. 20(10) limitations
2010-04-30 20 April 2010 External T.I. 2010-0355071E5 F - Ligne directrice 4 Other Legislation/Constitution - Federal - Indian Act - Section 87 Indian organization did not qualify under Guideline 4 where 20% of clientele lived off reserve
Income Tax Act - Section 2 - Subsection 2(1) central management and control of Indian organization is at the main office if control is legitimately exercised at meetings conducted there
16 April 2010 Internal T.I. 2010-0362601I7 F - Établissement stable-Province Income Tax Regulations - Regulation 400 - Subsection 400(2) - Paragraph 400(2)(e) CRA will accept shorter presence of substantial equipment at concerts than 30 days as representing PEs of the non-resident performance corporation
28 April 2010 External T.I. 2010-0362101E5 F - Déductibilité des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) under current use test, deductible interest increased to 100% when unit in triplex converted to rental use
14 April 2010 Internal T.I. 2009-0347511I7 F - Partie I.3 - Société de personnes Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(g) s. 181.2(3)(g) was to be applied on basis that partnership interest and debt held by a Crown agent was held by the Quebec government, being a corporation
Income Tax Act - Section 248 - Subsection 248(1) - Corporation Quebec government is a corporation
2010-04-23 7 April 2010 External T.I. 2010-0355221E5 F - Paragraphes 145(5) et 122(2) Income Tax Act - Section 149 - Subsection 149(5) NPO settled before 1972 is not grandfathered
12 April 2010 Internal T.I. 2009-0342871I7 F - Subvention aux naissances multiples Income Tax Act - Section 3 Quebec multiple birth subsidy is not income
14 April 2010 External T.I. 2008-0293981E5 F - Loi de 2007 sur les impôts de l'Ontario Other Legislation/Constitution - Ontario - Taxation Act 2007 - Section 46 - Subsection 46(1) - Transition Time amalgamation in 2008 results in a transition time corresponding to the amalgamation time

Pages