Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-04-03 23 March 2009 External T.I. 2008-0293131E5 F - Prestations reçues par une succession 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
Treaties - Income Tax Conventions - Article 18 exemption under Art. 18(2) of the Canada-Switzerland treaty
4 February 2009 External T.I. 2008-0292771E5 F - Régime de congé à traitement différé Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) plan failed to provide: withdrawal must be in employer’s discretion; maximum deferral period of 6 years; a deferral period must precede leave; return to work required
12 January 2009 External T.I. 2008-0293901E5 F - Article 80 Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation de minimis interest deductibility on a debt could cause it to be a commercial debt obligation
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) indirect use test also applies to the extent of eligible capital attributable to shares repurchased in consideration for debt issuance
19 January 2009 Internal T.I. 2008-0305241I7 F - Impôt de la partie I.3 et PCGR Income Tax Act - Section 181 - Subsection 181(3) CRA can challenge taxpayer’s application of GAAP
2009-02-06 22 January 2009 External T.I. 2008-0290971E5 F - Bénéfices de fabrication et de transformation Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits operation of breaking bulk packages into smaller lots for repackaging and sale was not “processing”
Income Tax Regulations - Schedules - Schedule II - Class 29 equipment used in dividing and repackaging bulk goods was not “processing” equipment
2009-01-30 21 January 2009 External T.I. 2008-0266191E5 F - Part IV & Capital Gain Strip Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) 943963 Ontario followed
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) portion of the dividend received by the recipient corporation that is subject to Pt. IV also includes any safe income attributable to the shares of the payer held by the recipient
26 January 2009 Internal T.I. 2008-0303901I7 F - Allocation raisonnable et coûts d'opération Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) Quebec government-mandated travel allowances are reasonable including re depreciation – if too low, can make s. 8(1)(h.1) claim
2009-01-23 23 December 2008 External T.I. 2008-0271401E5 F - GRIP/CRTG Income Tax Act - Section 89 - Subsection 89(1) - General Rate Income Pool - Element A - Element G safe income dividend can be included in GRIP if designated as separate dividend
6 January 2009 External T.I. 2008-0289341E5 F - EET - Règles transitoires Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement no grandfathering under 1986 transitional rule
Income Tax Act - Section 6 - Subsection 6(11) recognition under s. 6(11) of previously-unrecognized portion of deferred amount
13 January 2009 External T.I. 2008-0296981E5 F - Ajustement au PBR d'une participation Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(i) - Clause 53(2)(c)(i)(B) full amount of allocated farm loss reduces partnership ACB even if loss restricted under s. 31
2009-01-16 7 January 2009 External T.I. 2008-0286111E5 F - 88(1)d) and 87(11)-Late-filed designation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) late designation generally permitted where pro rata bump and no retroactive tax planning
8 January 2009 Internal T.I. 2008-0299371I7 F - Montant pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) separated spouse with joint custody not able to claim under s. 118(1)(b.1) because in a new common-law relationship – other spouse could
6 January 2009 Internal T.I. 2008-0301721I7 F - Frais judiciaires et droit de propriété Income Tax Act - Section 54 - Adjusted Cost Base survey costs to remedy problems on previous land acquisition were addition to land ACB
2009-01-09 5 January 2009 External T.I. 2008-0294011E5 F - Choix d'exclure les travaux en cours Income Tax Act - Section 34 election can create a loss
Income Tax Act - Section 10 - Subsection 10(4) - Paragraph 10(4)(a) a services business generally values its WIP based on its hourly rates
16 December 2008 Internal T.I. 2008-0300361I7 F - Déductibilité de l'impôt minimum sur les sociétés Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose Ontario CMT is non-deductible
2009-01-02 16 December 2008 External T.I. 2008-0279741E5 F - Renonciation au capital d'une fiducie Income Tax Act - Section 75 - Subsection 75(2) settlor’s valid renunciation of capital interest (but not income interest) prior to trustees’ exercise of discretion to distribute a capital gain would avoid application of s. 75(2)(a)(i)

Pages