Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2010-03-12 17 February 2010 Internal T.I. 2009-0348461I7 F - Transfert d'une PCMC à une société mère Income Tax Regulations - Schedules - Schedule II - Class 10 - Paragraph 10(x) full cost of CFVPs acquired by parent from production sub (which claimed the credits) added to Class 10(x)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Current expense vs. capital acquisition fully claimed films productions acquired from production sub on capital account
2010-03-05 19 January 2010 External T.I. 2009-0344681E5 F - Récompenses visées par règlement Income Tax Regulations - Regulation 7700 literary prizes were sufficiently recognized by the general public to be prescribed
23 February 2010 Internal T.I. 2010-0356121I7 F - Avantage imposable - appareils auditifs Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) hearing aid reimbursement was taxable given that employee owned the devices and primarily benefited
2010-02-26 18 March 2008 External T.I. 2008-0265861E5 F - Programme d'aide financière d'urgence ("PAFU") Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) s. 56(1)(u) applied to emergency assistance not based on an income test
Statutory Interpretation - French and English Version English version of s. 56(1)(u), as the broader of the two, was to be preferred
Income Tax Act - Section 153 - Subsection 153(1) no source deductions from social assistance payments
16 February 2010 External T.I. 2009-0322751E5 F - Traitement fiscal des indemnités reçues Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) prejudgment interest included in class action award was tax free
29 January 2010 Internal T.I. 2009-0339541I7 F - Inclusion au revenu et provision Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) advance fees for futures goods-handling services included in income under s. 12(1)(a) rather than s. 9
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) reserve available for future goods handling services to be performed
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense no deduction from prepaid fees of estimated cost of performance
2 February 2010 Internal T.I. 2009-0345741I7 F - Programme d'aide financière d'urgence ("PAFU") Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) social assistance paid without a means, needs or income test was not income to recipient
Income Tax Regulations - Regulation 233 - Subsection 233(2) - Paragraph 233(2)(g) lump sum emergency assistance under Quebec program would not be required to be included in income because no information slip required
16 February 2010 External T.I. 2010-0354801E5 F - CIRD - construction d'un logement Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Renovation credit dependent on timing of renovation expenditures and when moved into home
General Concepts - Ownership individual is considered to become owner of home in construction when it becomes habitable
2010-02-19 3 November 2008 External T.I. 2008-0278431E5 F - Déménagement hors Canada du siège soc. de société Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) OECD Commentary informs allocation of sales through non-resident office to Cdn manufacturing operation
Income Tax Act - Section 250 - Subsection 250(5) central management and control test overridden
Income Tax Act - Section 127 - Subsection 127(9) - Investment Tax Credit - Paragraph (a.1) ITC potentially available to a non-resident corporation carrying on business in Canada
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) s. 4(1)(b) requires allocation between Canada and another country on basis of relative profit contribution
9 February 2010 External T.I. 2009-0316561E5 F - Biens en immobilisations-RS&DE Income Tax Act - Section 127 - Subsection 127(9) - First Term Shared-Use Equipment expected use throughout expected useful life is considered
Income Tax Regulations - Regulation 2900 - Subsection 2900(11) requirement during establishment phase to be used primarily during useful life for SR&ED
13 January 2010 Internal T.I. 2009-0334931I7 F - Demande de changement d'exercice Income Tax Act - Section 249.1 - Subsection 249.1(7) floating fiscal year does not require CRA approval/retroactive change to previous year end to reduce s. 85(8) penalty not permitted
Income Tax Act - Section 249.1 - Subsection 249.1(3) requested change to commencement of fiscal period entailed a change to the previous year end
8 February 2010 External T.I. 2009-0337691E5 F - Assurance frais-généraux Income Tax Act - Section 9 - Nature of Income excess of overhead disability insurance received over overhead expense actually incurred was s. 9 income
25 January 2010 Internal T.I. 2009-0338601I7 F - Déclaration de renseignements électronique Income Tax Act - Section 162 - Subsection 162(5) - Paragraph 162(5)(a) electronic filer must certify accuracy of filings before allowed access
Income Tax Act - Section 150.1 - Subsection 150.1(4) T183 only required where filer is not the taxpayer
25 January 2010 Internal T.I. 2009-0345501I7 F - Allocations pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) absence of any services rendered during travel indicates the travel was not in the course of employment
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) potential application to track maintenance employees
22 January 2010 Internal T.I. 2009-0346971I7 F - Événement ayant lieu dans un club de golf Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(f) 67.1(2)(f) exclusion can apply to meals provided at a golf club
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(i) “facility” does not include a golf club's dining room, reception rooms, conference rooms, lounges or bar
5 February 2010 Internal T.I. 2009-0348921I7 F - Application d'un jugement de la CCI Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) Dupuis not being followed
8 February 2010 Internal T.I. 2009-0352721I7 F - Allocations pour frais de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) meaning of regular place of employment
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) no taxable benefit from $17 meal allowance paid where 2 or more hours of occasional contiguous overtime
2010-02-12 8 February 2010 External T.I. 2009-0335041E5 F - Résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (a) house owned by occupant’s child could not qualify
4 February 2010 External T.I. 2009-0350671E5 F - CIRD - coûts de démolition et de reconstruction Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Renovation demolishing and rebuilding did not qualify
2010-02-05 21 December 2009 Internal T.I. 2008-0296131I7 F - Fraction à risque Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(c) exception from s. 96(2.2)(c) for legitimate business loans from related parties
14 January 2010 Internal T.I. 2009-0323991I7 F - Débenture échangeable et opération à terme Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) only ½ deduction under s. 20(1)(f)(ii) for premium paid on cash-settling an exchangeable debenture under pre-2010 policy, and no s. 20(1)(f) deduction for cash settlement of forward
Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges premium was paid on capital account in closing out a cash-settled forward entered into in order to monetize a shareholding
Income Tax Act - Section 152 - Subsection 152(1) CRA position of applying changes in published policy prospectively
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) full deduction of amounts only partly, or not, deductible under s. 20(1)(f) would have caught the eye of a wise and prudent person reviewing the return

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