Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
Income Tax Act - Section 103 - Subsection 103(1) CRA generally does not challenge sharing agreements based on each partner’s contribution
29 August 2008 External T.I. 2008-0289971E5 F - Disposition d'un immeuble Income Tax Act - Section 54 - Principal Residence - Paragraph (a) residence did not qualify if sold before inhabited
2008-08-29 25 August 2008 External T.I. 2005-0139191E5 F - Paiement forfaitaire - pension alimentaire Income Tax Act - Section 60 - Paragraph 60(b) Tsiaprailis does not affect CRA position that lump-sum settlement of support obligations are not deductible and taxable
21 August 2008 External T.I. 2008-0286051E5 F - Revenu de location Income Tax Act - Section 3 - Paragraph 3(a) where one of the two co-owners of a duplex occupies and pays rent for one of the units, she is a source of income to the other co-owner, but not herself
2008-08-22 12 August 2008 External T.I. 2008-0278401E5 F - Pension alimentaire Income Tax Act - Section 60 - Paragraph 60(b) support payments to fiancée living abroad with her children were not deductible
13 August 2008 External T.I. 2008-0286341E5 F - Pension d'invalidité reçue de la GRC Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(i) pension under s. 11(2) of the RCMP Superannuation Act would not be exempt
Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(d) RCMP disability pension would not fall within s. 81(1)(d)
2008-08-01 25 July 2008 External T.I. 2008-0284861E5 F - Bourse post-doctorale Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) post-doctoral fellowship recognized under s. 56(1)(n) rather than (o), as the research was merely a means to furtherance of academic career
2008-07-25 18 July 2008 External T.I. 2008-0271211E5 F - Fiducie de santé et de bien-être Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan PHSP can include a self-insured plan
11 July 2008 External T.I. 2008-0271941E5 F - Frais de déplacement-principal lieu d'affaires Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) use of their homes for voyage planning did not render pilots’ homes their principal place of business
15 July 2008 External T.I. 2008-0275471E5 F - Société de personnes/Ajustement au PBR Income Tax Act - Section 99 - Subsection 99(1) CRA was prepared to rule to avoid double taxation problem prior to the s. 99(1) amendment
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) CRA intent to avoid double taxation from untimely basis adjustment for earned income
15 July 2008 External T.I. 2008-0278971E5 F - Feuillet T1204 Income Tax Regulations - Regulation 237 - Subsection 237(2) no T2014 slips required where the recipients did not have a contract with the federal government
15 July 2008 External T.I. 2008-0279271E5 F - Frais de déménagement en cas de faillite Income Tax Act - Section 128 - Subsection 128(2) as s. 128 is a complete code not covering moving expenses, an individual could deduct moving expenses incurred in the stub pre-bankruptcy year from bankruptcy year income
2008-07-04 28 April 2008 External T.I. 2007-0238071E5 F - Voiturier public Treaties - Income Tax Conventions - Article 8 taxpayer need not own the vehicles or operate them provided that it is engaged in all other aspects of the transporting service and is responsible to the customers
23 June 2008 External T.I. 2008-0268121E5 F - 75(2) et Prêt consenti à une fiducie Income Tax Act - Section 75 - Subsection 75(2) in order for s. 75(2) not to apply to loan to trust, the loan must be independent of the trust terms
7 July 2008 External T.I. 2008-0275961E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Student post-doctoral fellow focusing on research is not a student
2008-06-27 16 June 2008 External T.I. 2008-0270251E5 F - Bien utilisé dans une entreprise agricole Income Tax Act - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) tax effect remained the same following the 2006 amendments
13 June 2008 External T.I. 2008-0270721E5 F - Allocations pour l'usage d'un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) allowance for employees’ to return to work after regular shift to be on call was taxable
2008-06-20 29 May 2008 External T.I. 2007-0255321E5 F - Déclaration de renseignements Income Tax Regulations - Regulation 200 - Subsection 200(1) broad range of fees, reimbursements and honoraria paid by health centre required to be reported, but exclusive of GST
2 June 2008 External T.I. 2007-0262511E5 F - Obligation de produire un feuillet T4A Income Tax Regulations - Regulation 200 - Subsection 200(1) no T4A required by individual in personal capacity paying for professional or home-repair services
2 June 2008 External T.I. 2008-0264161E5 F - Benefit Conferred to a Shareholder Income Tax Act - Section 15 - Subsection 15(1) benefit on sole shareholder whose parents were the occupants of the corporate-owned home
27 May 2008 External T.I. 2008-0269441E5 F - Withdrawn Ruling Request Income Tax Act - Section 84 - Subsection 84(2) the 2005-0134731R3 transactions, accommodating “an intergenerational transfer of a family business,” would be abusive surplus stripping if applied to inter-sibling transfer
Income Tax Act - Section 245 - Subsection 245(4) GAAR applied to use of outside basis, created with the capital gains exemption, for an inter-sibling transfer
13 June 2008 Internal T.I. 2008-0280121I7 F - Crédit d'impôt pour condition physique des enfant Income Tax Regulations - Regulation 9400 - Subsection 9400(1) - Physical Activity initial swimming lesson program for preschoolers qualified notwithstanding that did not contribute initially to cardio-respiratory endurance
2008-06-06 29 May 2008 External T.I. 2007-0262591E5 F - Remboursement de sommes versées par erreur Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) s. 8(1)(n) could extend to reimbursements of disability benefits to an employer-arranged insurer
26 May 2008 External T.I. 2007-0263001E5 F - 2006 GRIP Addition Income Tax Act - Section 89 - Subsection 89(7) illustration of circular calculations for GRIP additions where cross-redemption in 2004
2008-05-30 29 April 2008 External T.I. 2006-0215891E5 F - Partnership Interest & Departure Tax Income Tax Act - Section 220 - Subsection 220(4.5) - Paragraph 220(4.5)(a) - Subparagraph 220(4.5)(a)(i) s. 85(1) rollover of the property triggered the s. 220(4.5) deferred tax
Income Tax Act - Section 85 - Subsection 85(1.1) - Paragraph 85(1.1)(b) partnership interest is eligible property
28 April 2008 External T.I. 2007-0243711E5 F - Gains et pertes sur change Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) FX gains on U.S. securities transactions cannot be deferred until there is a conversion to Canadian funds
28 April 2008 External T.I. 2007-0248761E5 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1.1) - Paragraph 122.3(1.1)(a) s. 122.3(1.1)(a) inapplicable where the individual’s corporation was retained for project abroad by arm’s length Canadian corporation
6 May 2008 External T.I. 2007-0254661E5 F - Partie B Medicare Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax U.S. Medicare Part B premiums are not non-business income tax

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