Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-01-29 26 January 2010 External T.I. 2009-0344121E5 F - REER, déduction pour cotisations excédentaires Income Tax Act - Section 146 - Subsection 146(8.2) - Paragraph 146(8.2)(c) a reference in Part I to a notice of assessment refers to a Part I notice of assessment
19 January 2010 External T.I. 2009-0349421E5 F - Récompenses visées par règlement Income Tax Regulations - Regulation 7700 Quebec citizenship prizes are prescribed prizes
2010-01-22 11 January 2010 External T.I. 2009-0340591E5 F - Specified class - 256(1.1) of the Act Income Tax Act - Section 256 - Subsection 256(1.1) - Paragraph 256(1.1)(d) s. 256(1.1)(d) must be met throughout the period the shares were outstanding – but can cleanse with s. 51 exchange
Income Tax Act - Section 51 - Subsection 51(1) s. 51(1) exchange regarded as the new shares having been issued for consideration equalling the FMV of the old shares
8 January 2010 External T.I. 2009-0344061E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 54 - Principal Residence partner can claim principal residence exemption
Income Tax Act - Section 118.04 - Subsection 118.04(1) - Eligible Dwelling - Paragraph (a) residence of a partnership, but not a corporation, can be an eligible dwelling
General Concepts - Ownership partner is “owner” of partnership property for principal residence exemption purposes
8 January 2010 External T.I. 2009-0349721E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 96 partner implicitly treated as owning partnership property
Income Tax Act - Section 118.04 - Subsection 118.04(1) - Eligible Dwelling - Paragraph (a) partner incurring renovation expenses while occupying partnership residence can claim HRTC
13 January 2010 External T.I. 2010-0353221E5 F - CIRD - Réparations Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Renovation minor repairs qualified as being on an enduring nature
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense repairing a lock, plumbing or parking lot surface is of an enduring nature
2010-01-15 18 December 2009 External T.I. 2009-0313121E5 F - Sommes reçues par un associé qui se retire Income Tax Act - Section 96 - Subsection 96(1.1) - Paragraph 96(1.1)(a) s. 98.1(1)(a) applies where an agreement to make a payment in compensation for partnership goodwill, cf. where agreement to allocate income
11 December 2009 Internal T.I. 2009-0350221I7 F - Prestations d'assurance emploi Income Tax Act - Section 60 - Paragraph 60(n) - Subparagraph 60(n)(iv) no administrative concession for backdated deduction if the taxpayer had no income in the year of EI repayment
2010-01-08 23 December 2009 External T.I. 2009-0341951E5 F - Déductibilité des frais d'emprunt Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(ii) legal fees of lender re security package come within s. 20(1)(e)(ii)
2010-01-01 14 April 2009 External T.I. 2007-0238221E5 F - Rights of musician-Transfer Income Tax Act - Section 56 - Subsection 56(4) s. 56(4) generally will apply where royalty is transferred without assignment of copyright, with exception of SOCAN royalty
Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) not applicable where copyright or royalty interests transferred at FMV
Income Tax Act - Section 85 - Subsection 85(1.1) right to royalties from SOCAN constituted eligible property
Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business royalty income generated from an active business is itself active business income
3 December 2009 External T.I. 2009-0311921E5 F - ESOP-US Income Tax Act - Section 7 - Subsection 7(2) s. 7(2) applied to notional units (tracking shares of US parent) issued to Canadian employees of Canadian sub by an ESOP trust holding shares of the US parent
3 December 2009 External T.I. 2009-0347131E5 F - Prestation consécutive au décès Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit qualifying employee can include a corporate director
16 December 2009 External T.I. 2009-0349031E5 F - Allocation de retraite, congés de maladie Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance payment of accumulated sick leave not a retiring allowance because paid before retirement
17 December 2009 External T.I. 2009-0351781E5 F - MAP - Fauteuil roulant Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(i) motorized chairs included
2009-12-18 8 December 2009 External T.I. 2009-0314161E5 F - Transfert d'un intérêt - résidence principale General Concepts - Ownership CRA can respect an oral counter letter if it is consistent with the parties’ conduct
23 November 2009 Internal T.I. 2009-0324731I7 F - Demande d'exemption administrative Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) legal fees to recover lump sum worker’s compensation payment were non-deductible
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) lump sum worker’s compensation payment could affect Pt. I.2 (OAS clawback) tax
26 November 2009 Internal T.I. 2009-0327551I7 F - Montant pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) unnecessary to claim the s. 118(1)(b) credit for either parent to claim the s. 118(1)(b.1)(ii) credit/ sharing of credits where 2 or more joint custody children
8 December 2009 External T.I. 2009-0328401E5 F - Crédit pour la condition physique des enfants Income Tax Regulations - Regulation 9400 - Subsection 9400(2) mandatory sports activities at school not prescribed
7 December 2009 External T.I. 2009-0344691E5 F - Versement d'un droit salarial Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration withholding on salary catch-up payment in the usual manner
3 December 2009 Internal T.I. 2009-0344951I7 F - Pénalité imposée en vertu du paragraphe 163(1) Income Tax Act - Section 163 - Subsection 163(1) after 1st assessing Year 2, and 2nd assessing Year 1, for undeclared income (plus s. 163(2) penalty for Year 1), s. 163(1) penalty assessable for Year 2
4 December 2009 Internal T.I. 2009-0344991I7 F - Paragraphe 246(1) et le jugement Massicotte Income Tax Act - Section 246 - Subsection 246(1) notwithstanding Massicotte, s. 246(1) generally should only be relied upon secondarily
7 December 2009 External T.I. 2009-0346821E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure expenditures incurred for services or property received during the eligible period can qualify even though the related renovation does not proceed until after that period
7 December 2009 External T.I. 2009-0349861E5 F - Déduction pour mauvaise créance Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) s. 20(1)(p)(i) deduction generally available for accrued interest when it became due and uncollectible
2009-12-11 17 October 2008 Internal T.I. 2007-0254201I7 F - Entente d'échelonnement du traitement Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement arrangement deferred employee compensation and was an SDA
Income Tax Act - Section 6 - Subsection 6(11) s. 6(11) deems deferred amount to be received in a year in which it has not been taxed
Income Tax Act - Section 6 - Subsection 6(12) no trust created since no transfer from employer’s patrimony
19 November 2009 External T.I. 2007-0257251E5 F - Assurance-vie Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (d) disposition by operation of law if there is a new contract
Income Tax Act - Section 148 - Subsection 148(10) - Paragraph 148(10)(d) designation of a different beneficiary does not entail a disposition
Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) benefit where sub is policyholder and premium payer and parent is beneficiary – but not for reverse
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) CDA addition to beneficiary not reduced by ACB of policy to the different policyholder - but s. 246(1) or 245(2) germane
1 December 2009 Internal T.I. 2009-0324951I7 F - Prix de base rajusté des actions d'une société Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) generally ACB adjustment for capital expenditures by shareholders on corporate building

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