Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-11-27 19 November 2009 External T.I. 2009-0312021E5 F - Prime d'assurance et donation Income Tax Act - Section 248 - Subsection 248(35) premiums paid on life insurance policy held by charity are not gift to the extent they relate to a premium refund to be received by estate
Income Tax Act - Section 118 - Subsection 118(5.2) deemed payment of gift by deceased under s. 118(5.2) when charity receives policy death benefit, subject to s. 248(35)
16 November 2009 External T.I. 2009-0313081E5 F - Classification d'un chemin de fer avant 1958 Income Tax Regulations - Schedules - Schedule II - Class 4 railway system acquired by common carrier before 1958 falls within Class 4
20 November 2009 External T.I. 2009-0332351E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure expenditure can come out of money that had already been set aside
Income Tax Act - Section 54 - Adjusted Cost Base cost of renovation includes GST/HST
16 November 2009 Internal T.I. 2009-0342571I7 F - Catégorie 1, alinéa 1100(1)a.1) du Règlement Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(a.1) it is landlord, not the tenant, who claims the building CCA
2009-11-20 2 November 2009 External T.I. 2009-0308741E5 F - Fonds de formation Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan - Paragraph (d) para. (d) exclusion did not apply where the training related to other work
5 November 2009 External T.I. 2009-0333031E5 F - Taxes foncières et scolaires Income Tax Act - Section 18 - Subsection 18(2) municipal taxes deductible against rental income but not gain from resale
9 November 2009 External T.I. 2009-0337281E5 F - Paris sportifs sur Internet Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit earning of $20,000 from sports betting indicated it was a business
2009-11-13 2 November 2009 External T.I. 2009-0317541E5 F - Transfer to Corporations Owned by Brothers Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) s. 55(3)(a) exemption turned on s. 55(5)(e)(ii)
Income Tax Act - Section 55 - Subsection 55(4) use of special voting shares by father questioned where most of the economic interest in the split-up business goes to the children
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) interest on debt assumed by Holdco to acquire non-dividend-bearing prefs of Opco was non-deductible even though commons also acquired – but amalgamation cured
4 November 2009 External T.I. 2009-0337451E5 F - Fractionnement de revenu de pension Income Tax Act - Section 118 - Subsection 118(7) - Qualified Pension Income RPP pension, but not annuity paid out of his RRSP, was eligible as qualified pension income of pensioner for s. 60.03 splitting
Income Tax Act - Section 60.03 - Subsection 60.03(1) - Split-Pension Amount RRSP annuity not eligible for splitting
2 November 2009 External T.I. 2009-0345491E5 F - Crédit d'impôt pour frais médicaux Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(l.2) lowering of windows with sliding openings could potentially qualify
2009-11-06 2 November 2009 External T.I. 2009-0317681E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure qualifying expenditures can include fees of designer
14 October 2009 External T.I. 2009-0324331E5 F - Placement admissible, part de coopérative Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Qualifying Share share that is not entitled to receive an allocation in proportion to patronage in respect of consumer goods or services could be a qualified investment
14 October 2009 External T.I. 2009-0325101E5 F - Placement admissible, part de coopérative Income Tax Regulations - Regulation 4900 - Subsection 4900(14) - Paragraph 4900(14)(a) - Subparagraph 4900(14)(a)(iii) both Reg. 4901(2)(a) and (b) need not be satisfied
16 October 2009 Internal T.I. 2009-0337721I7 F - Perte lors de fusion étrangère Income Tax Act - Section 87 - Subsection 87(8) claiming of capital loss in promptly-filed amended return would be accepted as an election
Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(b) s. 40(3.4) not applicable to foreign triangular merger to which s. 87(8) was elected not to apply
2009-10-30 23 October 2009 External T.I. 2009-0309861E5 F - Tax-free Savings Accounts Income Tax Act - Section 143.2 - Subsection 143.2(2) - Paragraph 146.2(2)(c) contribution by spouse causes cessation as TFSA
Income Tax Act - Section 74.5 - Subsection 74.5(12) - Paragraph 74.5(12)(c) s. 74.5(12)(c) inapplicable to contribution of property to TFSA of contributor’s spouse followed by spouse’s withdrawal of property and investment of proceeds
20 October 2009 External T.I. 2009-0327911E5 F - Fiducie non-résidente Contribuant résidant Income Tax Act - Section 94 - Subsection 94(1) - Resident Contributor any period of residence in Canada even if prior to a period when the person was non-resident in Canada is included in computing the 60-month period
20 October 2009 External T.I. 2009-0328441E5 F - Fiducie testamentaire Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) would apply if heirs form a trust to provide for their sister out of the residue, with the remainder to them on her death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) unlikely to have been a distribution as a consequence of death where mooted testamentary trust formed by beneficiaries by their own agreement
2009-10-23 13 October 2009 External T.I. 2009-0342091E5 F - Revenu d'emploi exonéré par Conv.- frais de garde Treaties - Income Tax Conventions - Article 19 employment income that was Treaty-exempt was to be reported (on a separate line), with the s. 110(1)(f)(i) deduction then claimed
Income Tax Act - Section 63 - Subsection 63(2) child care expenses could only be claimed by the spouse with the lower net income, notwithstanding that her income was Treaty-exempt
2009-10-16 30 September 2009 External T.I. 2009-0317641E5 F - Attribution de revenu Income Tax Act - 101-110 - Section 104 - Subsection 104(6) - Paragraph 104(6)(b) discretionary trust could distribute, and deduct under s. 104(6), a dividend received by it to a corporate beneficiary incorporated after the dividend’s receipt
Income Tax Act - Section 75 - Subsection 75(2) issuance of shares at FMV is not a transfer of property to which s. 75(2) can apply
2009-10-09 30 September 2009 External T.I. 2009-0340061E5 F - FERR au profit de l'époux ou du conjoint de fait Income Tax Act - Section 146 - Subsection 146(1) - Spousal or Common-Law Partner Plan a RRIF receiving a transfer from a spousal or common-law partner RRSP is rendered a spousal or common-law partner plan
2009-10-02 16 September 2009 External T.I. 2008-0295951E5 F - Article XVI de la Convention Canada-É.U Treaties - Income Tax Conventions - Article 16 $15,000 gross receipts exclusion under Art. XVI(1) of US Convention is inapplicable where the income is earned by the artist’s corporation
2 September 2009 Internal T.I. 2009-0329251I7 F - Application du paragraphe 80(16) Income Tax Act - Section 80 - Subsection 80(16) s. 80(16) designation under s. 80(11) increased s. 80(13) income inclusion
Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss - A s. 61.3 deduction reduced non-capital loss
Income Tax Act - Section 80 - Subsection 80(13) s. 80(13) income was from the debtor's business
2009-09-25 8 September 2009 External T.I. 2008-0299771E5 F - Gain on Disposition of Debt Income Tax Act - Section 43 - Subsection 43(1) partial repayment of low-ACB debt generates a capital gain
Income Tax Act - Section 9 - Computation of Profit partial repayment of low-cost debt generates business income if held on income account
17 September 2009 External T.I. 2009-0310251E5 F - Interaction between sections 89 and 55 Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) addition to CDA from redemption engaging s. 55(2) occurs at redemption time
28 August 2009 External T.I. 2009-0325881E5 F - Application of Subsection 89(8) Income Tax Act - Section 89 - Subsection 89(8) no deduction under element C for loss of target incurred in the year after the change of control
2009-09-04 20 August 2009 Internal T.I. 2009-0326941I7 F - Intérêts, Taxe sur le capital, déductibilité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose provincial capital tax and interest thereon generally is deductible/income taxes are not
2009-08-28 20 August 2009 External T.I. 2008-0294531E5 F - Placement admissible REÉR - Parts privilégiées RIC Income Tax Act - Section 146 - Subsection 146(5) premium can be paid in kind with contribution of shares, if validly issued

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