Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-11-06 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
2009-08-14 21 July 2009 Internal T.I. 2009-0322591I7 F - Déduction des intérêts Income Tax Act - Section 248 - Subsection 248(1) - Disposition replacement of note and capitalized interest by new note with increased amount did not constitute payment by novation of the old debt
General Concepts - Payment & Receipt replacement of note with capitalized note with note for full amount did not constitute payment by novation
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) issuance of replacement promissory note for amount of previous principal plus capitalized interest was not a crediting of such interest
2009-08-07 29 June 2009 External T.I. 2008-0296371E5 F - Capital dividends Income Tax Act - Section 129 - Subsection 129(1.2) s. 87(2)(aa) would apply to eliminate RDTOH of predecessor given the absence of an s. 83(2.4) equivalent to exempt the predecessor’s notional dividend
Income Tax Act - Section 83 - Subsection 83(2.1) s. 83(2.1) would apply to acquisition and amalgamation with shell corp. with CDA unless s. 83(2.4) exceptions applied
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) s. 87(2)(z.1) would apply to eliminate CDA of predecessor if the s. 83(2.4) exceptions did not prevent the application of s. 83(2.1) to the notional dividend paid by that predecessor
29 July 2009 External T.I. 2008-0297011E5 F - Conversion de participations dans une SNC Income Tax Act - Section 248 - Subsection 248(1) - Disposition no disposition if new partnerships interests exchanged for old interests that in totality are not substantially distinguishable
Income Tax Act - Section 97 - Subsection 97(2) s. 97(2) rollover not available if new partnerships interests exchanged for old interests are not in totality substantially distinguishable
Income Tax Act - Section 96 - Subsection 96(1.01) s. 96(1.01) inapplicable where only income interest and not capital interest disposed of
Income Tax Act - Section 43 - Subsection 43(1) where only income interest and not capital interest in a partnership disposed of, there is part disposition of partnership interest with resulting reduced ACB for remainder interest
30 June 2009 External T.I. 2008-0304311E5 F - Période admissible - CIEE Income Tax Act - Section 122.3 - Subsection 122.3(1) meaning of “more than six consecutive months”
29 July 2009 External T.I. 2009-0314611E5 F - Résidence pour membres du clergé à la retraite Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) provision of manse to retired Minister is not taxable employment benefit – so that no s. 8(1)(c) deduction
2009-07-31 7 July 2009 External T.I. 2008-0267941E5 F - Pompiers volontaires Income Tax Act - Section 81 - Subsection 81(4) “volunteer” in s. 81(4) references its broader meaning under provincial standards legislation, and is initially applied by the employer municipality
Income Tax Act - Section 5 - Subsection 5(1) someone normally is a “volunteer” rather than employee if any compensation is too small to be motivating
20 July 2009 External T.I. 2009-0312541E5 F - Allocation pour usage d'un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) car allowance bifurcated into 2 allowances: reasonable per-kilometre allowance; and unreasonable minimum allowance
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) T2200 can be prepared where car allowance bifurcated into 2 allowances, one of which is taxable

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