Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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 - 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
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 - 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

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