Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-05-08 30 April 2009 External T.I. 2008-0296721E5 F - Late filed election 85(7) - Amending transactions Income Tax Act - Section 85 - Subsection 85(1) CRA will not accept s. 85 election based on self-help rectification to retroactively issue shares at transfer time
General Concepts - Rectification & Rescission CRA will not anticipate a judicial rectification
5 May 2009 Internal T.I. 2009-0311211I7 F - Impôt payable par ailleurs en vertu de la Partie I Income Tax Act - Section 117 - Subsection 117(1) "tax otherwise payable under this Part" under s. 127(1) includes corporate surtax
2009-05-01 23 April 2009 External T.I. 2008-0301241E5 F - Fiducie d'invest. à participation unitaire-75(2) Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) generally not applied to commercial unit trust where single class of units subscribed for on FMV terms
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) CRA could extend IT-369R, para. 10 to avoid ACB reductions to unit trust units where s. 75(2) applies
Income Tax Act - Section 248 - Subsection 248(28) doubtful that s. 248(28)(a) can be applied to preclude ACB grind
22 April 2009 Internal T.I. 2009-0312261I7 F - Étude de faisabilité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense expenses of optimizing manufacturing operations including of related shelving and other equipment purchases were on income account
2009-04-24 16 April 2009 External T.I. 2008-0294631E5 F - Interaction between 55(2) and 186(1) Income Tax Act - Section 55 - Subsection 55(2) application of s. 55(2) does not affect amount of assessable dividend for Pt. IV tax purposes
25 March 2009 External T.I. 2008-0300401E5 F - Fiducie en faveur de soi-même - prêt sans intérêt Income Tax Act - Section 75 - Subsection 75(2) Howson applied to find that non-interest bearing loan by individual to his alter ego trust not subject to s. 75(2)/no contribution if individual pays trust taxes following a s. 104(13.1) election
Income Tax Act - 101-110 - Section 104 - Subsection 104(13.1) s. 104(13.1) election generally available where no s. 75(2) application, which is not engaged by the individual’s payment of trust-level taxes
Income Tax Act - Section 56 - Subsection 56(4.1) s. 56(4.1) inapplicable to NIB loan made by individual to his alter ego trust
General Concepts - Payment & Receipt individual pays trust taxes when he receives trust distributions net of such taxes
15 April 2009 Internal T.I. 2008-0301171I7 F - 7(3)b) vs 143.3(3) Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) recognition of compensation expense under GAAP on granting and then exercise of conventional Pubco options precluded by s. 7(3)(b) and notwithstanding Alcatel
Income Tax Act - Section 143.3 - Subsection 143.3(3) - Paragraph 143.3(3)(b) s. 143.3(3)(b) inapplicable given prior application of s. 7(3)(b)
2009-04-17 14 April 2009 External T.I. 2009-0307791E5 F - Allocation de retraite et congé de maladie Income Tax Act - Section 5 - Subsection 5(1) payment of accumulated sick leave on termination was employment income given pattern of annual payouts
Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance payout of accumulated sick leave on employment termination can be a retiring allowance – but not where it has been annually distributed
31 March 2009 External T.I. 2009-0310821E5 F - Associated Corporations - 256 Income Tax Act - Section 256 - Subsection 256(1) - Paragraph 256(1)(d) Mr. B was related to each member of a related group comprising him and his brother for purposes of engaging s. 256(1)(d)
2009-04-10 1 April 2009 Internal T.I. 2009-0307151I7 F - Employé ou travailleur autonome Income Tax Act - Section 5 - Subsection 5(1) Bills deeming workers not to be employees were unconstitutional
Statutory Interpretation - Interpretation Act - Section 8.1 unnecessary to address effect of provincial statutes declared to be invalid
27 March 2009 Internal T.I. 2009-0308111I7 F - Crédit d'impôt pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) s. 118(9.1) applies to death of dependant child, but not to parent
2009-04-03 23 March 2009 External T.I. 2008-0293131E5 F - Prestations reçues par une succession Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) amounts received by estate in settlement of deceased’s action for unpaid employment-termination disability were taxable
Income Tax Act - Section 70 - Subsection 70(2) amounts received by estate in settlement of deceased’s action for unpaid disability were rights and things
Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit survivor benefit in settlement of rights under a wage loss replacement plan could be a death benefit
2009-03-27 5 March 2009 External T.I. 2008-0279241E5 F - Prestation consécutive au décès Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit benefit paid on union member’s death could not be a death benefit (no employer-employee relationship
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(j) amount paid to union member could be treated as a refund of union dues with the balance taxable under s. 6(1)(j)
Income Tax Act - Section 70 - Subsection 70(2) lump sum paid to a union member on death could be in satisfaction of a right or thing
19 March 2009 Internal T.I. 2009-0306971I7 F - 6801(d): Traitement fiscal pour l'employé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) appreciation in DSUs is not a capital gain
Income Tax Regulations - Regulation 6801 - Paragraph 6801(d) DSU cash-out amount is employment income
18 March 2009 External T.I. 2009-0309211E5 F - Crédits d'impôt personnels Income Tax Act - Section 118.92 ordering of tuition, then medical expense, then student loan credits
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(d) satisfaction of clothing needs of institutionalized adult child would be sufficient to engage the credit
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) parent separated for part of year could claim the wholly dependent person credit only if he did not deduct support
2009-03-20 4 March 2009 External T.I. 2009-0306401E5 F - Plafond des affaires Income Tax Act - Section 125 - Subsection 125(5) - Paragraph 125(5)(a) no inappropriate grind of business limit, where a straddling fiscal period, when business limit increased to $400,000 in 2007
11 March 2009 External T.I. 2009-0306601E5 F - Remboursement de cotisations syndicales Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(j) amounts received from a union that are not a reimbursement of union dues generally are exempt
Income Tax Act - Section 3 - Paragraph 3(a) Fries applied re exempt distributions from a union
2009-02-27 30 January 2009 External T.I. 2008-0287541E5 F - Décès - actions détenues en indivision Income Tax Act - Section 70 - Subsection 70(6) s. 70(6) inapplicable if partition of bequeathed shares between death and distribution to spousal trust
Income Tax Act - Section 248 - Subsection 248(21) block of shares is not a single property, so that partition must occur on a share-by-share basis giving rise to separately-held fractional shares
16 February 2009 External T.I. 2008-0293911E5 F - Application of subsection 55(2). Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) s. 55(3)(a) most clearly unavailable where Opco repurchases a portion of its commons shares held by Bco, followed by Bco’s purchase of the Opco shares of Aco
2009-02-20 5 February 2009 External T.I. 2008-0302821E5 F - Revenu de biens ou revenu d'entreprise Income Tax Act - Section 129 - Subsection 129(6) carrying on a specified investment business does not preclude the operation of s. 129(6)
2009-02-13 15 January 2009 External T.I. 2008-0272681E5 F - Options d'achat sur devises Income Tax Act - Section 204 - Qualified Investment - Paragraph (d) FX puts and calls are qualified if listed
14 January 2009 External T.I. 2008-0274271E5 F - Rente de la Suisse Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) - Clause 56(1)(a)(i)(C.1) does not extend to pension from Switzerland

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