Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
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

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