Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-02-13 14 January 2009 External T.I. 2008-0274271E5 F - Rente de la Suisse 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)
Income Tax Act - Section 248 - Subsection 248(9) - Disclaimer legally impossible for a beneficiary of a discretionary trust to partially renounce income from a specific trust property
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (i) non-disposition distribution of non-taxable portion of trust capital gains avoids a gain under s. 107(2.1)
Income Tax Act - Section 54 - Proceeds of Disposition settlor’s renunciation of capital interest (but not income interest) prior to trustees’ exercise of discretion to distribute a capital gain would generate nil proceeds and not engage s. 56(2) or (4)
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) s. 69(1) does not apply to a renunciation of trust capital interest since no disposition "to" any person
Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) inapplicable to renunciation of capital interest in a trust
Income Tax Act - Section 56 - Subsection 56(4) s. 56(4) inapplicable to disclaimer of capital interest in a trust
19 December 2008 External T.I. 2008-0299321E5 F - Exploitation forestière et DBFT Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits managing processing operation of another corp. did not qualify
Income Tax Regulations - Regulation 5202 - Cost of Manufacturing and Processing Labour fees of another corp. for managing the taxpayer’s log processing operation could qualify as "cost of manufacturing and processing labour"
2008-12-19 8 December 2008 External T.I. 2008-0264691E5 F - GRIP Addition/ Majoration CRTG Income Tax Act - Section 89 - Subsection 89(7) - Element A - Paragraph (c) dividends of full rate taxable income from sub to parent generated addition to parent’s GRIP addition
2008-12-12 2 December 2008 Internal T.I. 2008-0270981I7 F - Entreprise de prestation de services personnels Income Tax Act - Section 246 - Subsection 246(1) s. 246(1) could apply re individual’s personal use of residence held in partnership mostly owned by his Holdco
2 December 2008 External T.I. 2008-0301761E5 F - Prepayment of Reassessments - Refund Interest Income Tax Act - Section 164 - Subsection 164(3) CRA will accept an advance payment of a genuinely anticipated reassessment so as to subsequently generate interest on the advance’s refund
2008-11-28 21 November 2008 External T.I. 2008-0279231E5 F - Revenu de commission Income Tax Act - Section 9 - Nature of Income CRA exempting of non-substantial commissions received by brokers for sales to themselves of life insurance or critical illness policies does not extend to other financial products
17 November 2008 Internal T.I. 2008-0293121I7 F - Crédit d'impôt pour déficience mentale ou physique Income Tax Act - Section 118.3 - Subsection 118.3(1) - Paragraph 118.3(1)(c) nursing home exclusion could extend to credit claimed under s. 118.2(2)(e) if the individual does not receive highly specialized care
25 November 2008 External T.I. 2008-0297631E5 F - Déductibilité des intérêts dans une compagnie Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest-free loan made by Opco to fund acquisition of its shares did not satisfy any indirect use test
17 November 2008 Internal T.I. 2008-0299621I7 F - Allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance amounts received for lost wages, and pain and suffering, under ss. 53(2)(c) and (e), respectively, of the Canadian Human Rights Act were taxable, and non-taxable
2008-11-21 10 November 2008 External T.I. 2007-0237551E5 F - Vente à tempérament Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A acquisition and disposition under instalment sale when purchaser obtains possession, the right of use and to collect the fruits
6 November 2008 Internal T.I. 2008-0292561I7 F - DAPE multiple Income Tax Act - Section 125 - Subsection 125(7) - Personal Services Business PSBs where 4 brothers and an executive provided all the management services to a jointly owned construction company through their respective managementcos
Income Tax Act - Section 256 - Subsection 256(2.1) application of s. 256(2.1) to SBD multiplication where 4 brothers provided their management services to Opco through their respective managementcos
12 November 2008 External T.I. 2008-0295731E5 F - Supplément remboursable pour frais médicaux Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) statutory reference to sources of income from businesses did not require netting business loss from 1st partnership against business income from 2nd partnership

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