Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-07-24 15 July 2009 External T.I. 2009-0315221E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure cost of replacing residential septic system for principal residence (e.g., a cottage) generally qualifies
15 July 2009 External T.I. 2009-0316451E5 F - Crédit d'impôt pour la rénovation domiciliaire Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense cost of replacing septic tank and drainage field of an enduring nature
13 July 2009 Internal T.I. 2009-0328161I7 F - Personne entièrement à charge non-résidente Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) individual living outside Canada with dependant child can claim s. 118(1)(b) credit if a deemed s. 250(1) resident
2009-07-17 26 May 2009 External T.I. 2009-0318441E5 F - Bâtiment non-résidentiel admissible Income Tax Regulations - Regulation 1104 - Subsection 1104(2) - Eligible Non-Residential Building hotel but not a seniors’ residence qualifies as “non-residential”
2009-07-10 2 July 2009 External T.I. 2009-0319211E5 F - T5008 : Contrat d'opération à terme (Futures) Income Tax Regulations - Regulation 230 - Subsection 230(2) amount to be entered on T5008 as "proceeds of disposition or payments" is net gain or loss on closing out futures contract
Income Tax Act - Section 9 - Computation of Profit gain or loss on futures contract determined when closed out on establishing opposite position and not affected by maintenance margin
23 June 2009 External T.I. 2009-0322551E5 F - Commission scolaire, Organisme public Income Tax Act - Section 149.1 - Subsection 149.1(1) - Qualified Donee - Paragraph (a) - Subparagraph (a)(iii) school board performs a function of government
2009-07-03 26 June 2009 Internal T.I. 2009-0319501I7 F - Résidence reçue en héritage - PBR Income Tax Application Rules - Subsection 26(3) ACB of property inherited before December 31, 1971 to be determined as of that date
26 June 2009 External T.I. 2009-0323711E5 F - Commissions à des travailleurs indépendants Income Tax Regulations - Regulation 200 - Subsection 200(1) T4A requirement applies equally where payee is a partnership
25 June 2009 Internal T.I. 2009-0328171I7 F - Pénalité pour omission - 163(1) Income Tax Act - Section 163 - Subsection 163(1) s. 163(1) cannot apply where the previous year’s failure was in claiming bogus expenses rather than failing to report revenues
2009-06-26 11 May 2009 External T.I. 2008-0276761E5 F - Class 43.1 and 43.2 Income Tax Regulations - Schedules - Schedule II - Class 43.1 wood waste fuelled heat production system and ground source heat pump likely could qualify
Income Tax Regulations - Regulation 1104 - Subsection 1104(13) - Eligible Waste Fuel wood pellets are wood waste
12 June 2009 Internal T.I. 2008-0294921I7 F - Montant reçu à l'égard d'un surplus actuariel Income Tax Act - Section 9 - Nature of Income lump sum paid to asset vendor for actuarial surplus in transferred pension plan was s. 9 income under Ikea expense-adjustment principle
Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit transfer of a pension plan assets and liabilities to the asset purchaser with regulatory approval entailed a plan “modification” rendering actuarial surplus compensation taxable
27 May 2009 External T.I. 2008-0296731E5 F - Rachat d'actions: 20(1)c) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) corporation must allocate contributed capital of redeemed shares proportionately to borrowed money and redemption notes, but can disproportionately allocate its accumulated profits
12 June 2009 External T.I. 2009-0316511E5 F - Charges sociales et autres retenues France Treaties - Income Tax Conventions - Article 18 list of pension plans recognized for French tax purposes re Art. XXIX(5) of French Treaty
Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax social security contributions do not qualify as income taxes – but French "contribution sociale généralisée" and "contribution pour le remboursement de la dette sociale" so qualify
2009-06-19 4 May 2009 External T.I. 2008-0299841E5 F - Garantie pour l'impôt de départ Income Tax Act - Section 220 - Subsection 220(4.5) posting of security for departure tax can generate refund of instalments paid in excess of regular tax
Income Tax Act - Section 164 - Subsection 164(7) refund of instalments paid in excess of Part I tax for year ignoring s. 128.1(4) departure tax permitted where s. 220(4.5) security posted for such departure tax
10 June 2009 External T.I. 2008-0300041E5 F - Paiements ou remboursement de frais de formation Income Tax Act - Section 5 - Subsection 5(1) bonus taxable even where employee requests that it be spent on skills training
10 June 2009 External T.I. 2009-0308031E5 F - Admissibilité partagée de la PFCE Income Tax Act - Section 122.6 - Eligible Individual - Paragraph (f) factors in Reg. 6302 applied to determine which parent has primary care responsibility – if indeterminate, CRA applies its shared eligibility policy
8 June 2009 External T.I. 2009-0314301E5 F - Société d'État provinciale, production T2 Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) provincial Crown corporations not required to file T2 returns and forms
12 June 2009 Internal T.I. 2009-0324511I7 F - Déductibilité des primes payées Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) premiums paid by broker on policies on which the insureds were family members were non-deductible notwithstanding that the related commissions earned by him were taxable
Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit substantial commissions generated to broker on policies where he paid the premiums were taxable given their substantial amount
2009-06-12 27 May 2009 Internal T.I. 2009-0320311I7 F - CELI - Notion d'avantage Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) - Subparagraph (b)(i) accretion in common shares issued to employee's TFSA on an estate freeze was an advantage
27 May 2009 External T.I. 2008-0303971E5 F - Transfer of a life insurance policy Income Tax Act - Section 148 - Subsection 148(7) gain under s. 148(7) on drop down of policy (with CSV exceeding its ACB) by individual to his corp.
3 June 2009 External T.I. 2009-0310231E5 F - Exonération des gains en capital Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(d) 24-month test in para. (b) of QSBCS definition met where during part of 24-month period, mooted QSBCS were held through a general partnership
3 June 2009 External T.I. 2009-0319551E5 F - Déductibilité des dépenses Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit test for identifying a business source
2009-06-05 27 May 2009 Internal T.I. 2009-0310751I7 F - Usufruit d'un immeuble avant 1991 Income Tax Act - Section 248 - Subsection 248(3) re a usufruct created prior to 1991, the usufructuary was considered to continue as the beneficial owner
Income Tax Act - Section 54 - Principal Residence usufructuary under usufruct created prior to 1991 was beneficial owner on his death in 2007 for principal residence exemption purposes
22 May 2009 Internal T.I. 2009-0312791I7 F - Transfert de biens entre un rentier et son REÉR Income Tax Act - Section 146 - Subsection 146(1) - Premium purchase of RRSP property at cost is viewed as premium to the extent of excess over FMV
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) an RRSP trust’s annuitant does not deal at arm’s length under s. 251(1)(c) with the RRSP
26 May 2009 External T.I. 2009-0316841E5 F - Convention de retraite, crédit d'impôt étranger Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax - Paragraph (b) usual Pt. I deductions, including under ss. 20(11) and (12), can apply to computing income under para. (b)
Income Tax Act - Section 126 - Subsection 126(1) no foreign tax credit can be claimed for non-business income tax paid on income of RCA trust
2009-05-29 22 May 2009 External T.I. 2009-0311241E5 F - Compensation reçue pour harcèlement psychologique Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance award to dismissed employee for psychological harassment by the employer was non-taxable
2009-05-15 21 April 2009 External T.I. 2008-0304451E5 F - Accord de séparation et transfert de biens Income Tax Act - Section 146 - Subsection 146(16) - Paragraph 146(16)(b) amounts paid to provide for child maintenance not covered
27 April 2009 External T.I. 2008-0304761E5 F - Retraits et transferts provenant d'un RPDB Income Tax Act - Section 147 - Subsection 147(2) - Paragraph 147(2)(k) s. 147(2)(k) available even while member still an employee
Income Tax Act - Section 147 - Subsection 147(19) s. 147(19) available even while member still an employee
6 May 2009 External T.I. 2009-0311951E5 F - Résidence au Canada pour fins fiscales Income Tax Act - Section 114 application of s. 114 where return to Canada during the year
13 May 2009 External T.I. 2009-0314851E5 F - Frais d'administration, régimes de pensions Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense payment by employer to pension plan of ITCs generated by it on pension plan administration expenses could be deductible if pursuant to legal obligation

Pages