Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2009-01-02 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
Income Tax Act - Section 122.51 - Subsection 122.51(1) - Eligible Individual - Paragraph (c) - Subparagraph (c))ii) reference to sources of income from business did not require netting partnership business loss against business income from 2nd partnership
2008-11-07 30 October 2008 External T.I. 2006-0198381E5 F - Disposition d'un BUP - application de l'article 42 Income Tax Act - Section 42 - Subsection 42(1) - Paragraph 42(1)(b) payment of claim re latent defect in principal residence generated a s. 42 capital loss – that was denied by s. 40(2)(g)(iii)
28 October 2008 External T.I. 2008-0274281E5 F - Société gestion de pension, moyen de financement Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.1) - Subparagraph 149(1)(o.1)(i) - Clause 149(1)(o.1)(i)(A) 2-pronged test
Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.1) - Subparagraph 149(1)(o.1)(ii) to be accepted, the corporation must hold property rather than only manage
3 November 2008 Internal T.I. 2008-0285781I7 F - Résidence principale Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(b) business use of residence was not “ancillary”
30 October 2008 External T.I. 2008-0286141E5 F - Prestations de retraite reçues par un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 exempt portion of pension payments determined based on exempt portions of employment as entitlements thereto accrued
3 November 2008 External T.I. 2008-0289701E5 F - Paiement fait à la succession d'un employé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) lump sum paid by employer to estate of employee, compensating for insurance proceeds that the estate could have claimed, was non-taxable under surrogatum principle
2008-10-31 24 October 2008 External T.I. 2008-0278661E5 F - Allocation pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(v) travel to cover “a very great distance” between the employee’s regular work place and the employer’s place of business (a hotel meeting room) is in the course of the employment
2008-10-24 6 October 2008 External T.I. 2008-0271421E5 F - Terres à bois-plan d'aménagement forestier Québec Income Tax Act - Section 73 - Subsection 73(3) - Paragraph 73(3)(c) Quebec regional agencies’ plans for forest management plans would generally satisfy s. 73(3)(c), whose “engaged” requirement would be met if such plans did not require work
Income Tax Act - Section 70 - Subsection 70(9) - Paragraph 70(9)(a) “engaged” requirement in s. 70(9)(a) is satisfied to extent the forest management plan requires no action
Income Tax Act - Section 248 - Subsection 248(1) - Farming woodlot, to be a farm, must focus on the fostering of the stand
2008-10-10 26 September 2008 Internal T.I. 2008-0281111I7 F - Salaires admissibles - CICEA Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice wages of apprentice carpenter ineligible to the extent related to renovation rather than new construction
2008-10-03 24 September 2008 External T.I. 2008-0268511E5 F - Déductibilité des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) partial loss of interest deduction on MFT investment loan on capital distributions even where capital distribution allocated solely to interest payment
25 September 2008 Internal T.I. 2008-0292531I7 F - Frais de scolarité -Programme suivi par internet Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(b) full-time attendance can occur via the internet
2008-09-26 18 September 2008 External T.I. 2008-0264381E5 F - Résidence d'une fiducie Income Tax Act - Section 104 - Subsection 104(1) securities depositary and custodian did not hold assets under a trust
Income Tax Act - Section 2 - Subsection 2(1) holding of assets by Canadian securities depositary and custodian would not be relevant to trust residence
12 September 2008 External T.I. 2008-0275041E5 F - Don de bien écosensible Income Tax Act - Section 110.1 - Subsection 110.1(1) - Paragraph 110.1(1)(d) donated ecologically sensitive land can be inventory
17 September 2008 External T.I. 2008-0279101E5 F - Pension alimentaire - enfant majeur Income Tax Act - Section 56.1 - Subsection 56.1(1) s. 56.1(1) deemed amounts paid directly to adult child pursuant to court-ordered support obligation to have been received by the other spouse
Income Tax Act - Section 60.1 - Subsection 60.1(1) s. 60.1(1) deemed amounts paid directly to adult child pursuant to court-ordered support obligation to have been paid to the other spouse
2008-09-19 16 September 2008 External T.I. 2008-0268021E5 F - Catégorie 43 - poinçon hydraulique Income Tax Regulations - Schedules - Schedule II - Class 43 hydraulic punch used in manufacturing processes of 3rd parties qualified
28 August 2008 External T.I. 2008-0287611E5 F - Surplus Stripping Income Tax Act - Section 84.1 - Subsection 84.1(1) s. 84.1 or GAAR would apply to series of transactions to convert a taxable dividend into proceeds of freeze shares
2008-09-05 29 August 2008 External T.I. 2007-0257661E5 F - Allocation pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) travel between the employer’s place of business (even where a home office) and another business location is not personal
21 August 2008 External T.I. 2008-0272241E5 F - Régime compl. d'assurance de soins médicaux Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) a decrease in salary and increase in HCSA flex credits on renegotiation of employment contract does not result in an income inclusion
19 August 2008 Internal T.I. 2008-0280681I7 F - Création d'emplois d'apprentis Income Tax Act - Section 127 - Subsection 127(9) - Apprenticeship Expenditure no pro-ration for short taxation years
27 August 2008 External T.I. 2008-0287951E5 F - Entreprises distinctes Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) a chain of retail stores operating under the same rules and procedures likely would be a single business
20 August 2008 External T.I. 2008-0288561E5 F - Convention de partage d'une société de personnes Income Tax Act - Section 96 - Subsection 96(1.1) no income could be allocated under s. 96(1.1) where aggregate income was nil
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) payment to a retired partner in excess of partnership income is treated as a constructive withdrawal of capital by the other partners, reducing their ACB

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