Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-04-23 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) - Eligible pre-2009 Winding-up completion time does not occur until formal dissolution
13 April 2010 External T.I. 2010-0358941E5 F - CIRD - franchise Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure qualifying expenditure generally not reduced by insurance reimbursement
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense expense generally incurred by taxpayer even where reimbursed by insurance company
22 December 2009 Internal T.I. 2009-0328141I7 F - 93(2) - Perte due à fluctuation de devises Income Tax Act - Section 93 - Subsection 93(2) loss under s. 93(2) includes a loss wholly attributable to a fully-hedged FX loss
Income Tax Act - Section 93 - Subsection 93(2.01) - Paragraph 93(2.01)(b) relief under s. 93(2.01)(b) unavailable where matching FX gain is realized in a subsequent year
14 April 2010 External T.I. 2010-0356901E5 F - RAP- Rétroactivité Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (e) ownership of a home whose purchase was voided did not count
2010-04-16 12 April 2010 External T.I. 2009-0327161E5 F - Revenu de location General Concepts - Ownership CRA can be bound by a counter letter rather than the apparent contract
Income Tax Act - Section 3 notwithstanding Guide T4036, rental property can be rented at an arm’s length rent to related persons to generate losses if there is a source of income
1 April 2010 Internal T.I. 2009-0352611I7 F - Redressement après le délai de prescription Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) statement of incorrect income amount for spouse for s. 118(1)(a) credit purposes is a misrepresentation – but CRA must establish that prudent person would not have so erred
6 April 2010 Internal T.I. 2009-0343091I7 F - Montant pour enfant Income Tax Act - Section 118 - Subsection 118(4) - Paragraph 118(4)(b) two separate parents with joint custody and separate residences can agree who claims which of their 3 children
9 April 2010 External T.I. 2010-0361381E5 F - Eligible Dividend Income Tax Act - Section 89 - Subsection 89(14) dividends declared separately can be separate dividends notwithstanding their payment by one cheque
2010-04-09 5 March 2010 Internal T.I. 2009-0346261I7 F - Minimisation des pertes Income Tax Act - Section 112 - Subsection 112(3.2) - Paragraph 112(3.2)(b) a testamentary trust can qualify as an estate beneficiary for s. 112(3.2)(b) purposes
Income Tax Act - Section 112 - Subsection 112(3.2) - Paragraph 112(3.2)(a) respective purviews of ss. 112(3.2)(a)(ii)(A), (B) or (C)
Income Tax Act - Section 104 - Subsection 104(2) the trust and trustees both considered to be an individual respecting the corpus and thus to own it
15 March 2010 Internal T.I. 2009-0323081I7 F - Frais pour droit d'usage Income Tax Act - Section 6 - Subsection 6(2) - Element B travel in employer’s car from employer to home the night before is personal use, and the drive to the customer and from there to employer is not personal
26 March 2010 External T.I. 2009-0350821E5 F - Montant assurable et ouvrant droit à pension Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) value of housing is business income rather than being deductible under s. 8(1)(c) if pastor receives contributions from congregation as business income
2010-04-02 25 March 2010 External T.I. 2009-0308851E5 F - Transactions de valeurs mobilières Income Tax Act - Section 9 - Capital Gain vs. Profit - Shares weighing of factors in IT-479R, para. 11 re the presence of a trading business
2010-03-26 9 February 2010 Internal T.I. 2009-0333571I7 F - Paragraphe 7(1.5) - contrepartie reçue Income Tax Act - Section 7 - Subsection 7(1.5) s. 7(1.5) rollover where employees exchanged specific s. 7(1.1) shares for shares of grandparent, even though they also received cash and PUC distribution
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

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