Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-09-21 11 September 2007 External T.I. 2007-0227421E5 F - Investment tax Credit - Production of Slate Income Tax Act - Section 248 - Subsection 248(1) - Mineral Resource extracting slate from quarry would be producing industrial minerals rather than extracting minerals from a mineral resource
13 September 2007 External T.I. 2007-0251081E5 F - Transactions d'options d'achat d'actions Income Tax Act - Section 49 - Subsection 49(1) before any GAAR application, an expiring non-capital loss can be converted to a net capital loss by selling a covered option at year end and purchasing an offsetting position a few days later
2007-09-14 29 August 2007 Internal T.I. 2007-0219931I7 F - Perte sur taux de change - société de personnes Income Tax Act - Section 39 - Subsection 39(2) s. 39(2) gain to partnership when USD advance owing by it is converted to units
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(i) no basis increase where partner converts its USD advance with accrued FX gain into additional units
24 July 2007 External T.I. 2007-0227261E5 F - Remise de certificats cadeaux à des employés Income Tax Act - Section 5 - Subsection 5(1) gift certificates given out to employees on a draw are cash equivalent taxable gifts
4 September 2007 Internal T.I. 2007-0237791I7 F - Gain et perte sur taux de change Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) USD loan to parent no longer represented money on deposit, so that funds movement generated FX gain or loss
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) s. 40(2)(g)(ii) extended to FX losses on non-interest-bearing loan to parent
2007-09-07 24 August 2007 External T.I. 2006-0215691E5 F - Ristourne d'un régime d'assurance collective Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) application of rebate by employer-policyholder to reduce premiums payable by employees would render their disability benefits partly taxable
17 July 2007 Internal T.I. 2007-0241701I7 F - Remboursement de primes versées à un RPAM Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) refund of premiums when coverage denied did not generate a taxable benefit
2007-08-31 17 July 2007 External T.I. 2007-0220121E5 F - Lac artificiel - catégorie d'amortissement Income Tax Regulations - Schedules - Schedule II - Class 6 - Paragraph (e) artificial lake qualifies as a “water storage tank’
25 July 2007 External T.I. 2007-0222251E5 F - Perte finale sur un immeuble démoli Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) terminal loss on demolition of building is generally cut in half without ACB bump to subjacent land
Income Tax Act - Section 248 - Subsection 248(1) - Disposition demolition of a building is its disposition
13 August 2007 External T.I. 2007-0224151E5 F - Surplus Stripping Income Tax Act - Section 84 - Subsection 84(2) proposed transactions that converted the proceeds of sale of a business into proceeds of share sale were surplus-stripping transactions
25 July 2007 External T.I. 2007-0224601E5 F - Application de l'alinéa 40(2)b) Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) s. 40(2)(b) deduction claimable on sale of vacant land formerly used for demolished residence, but only for years of occupation
20 July 2007 Internal T.I. 2007-0230451I7 F - Aide financière aux mineures enceintes Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) financial assistance to pregnant minors was includible under s. 56(1)(u) and deductible under s. 110(1)(f)
31 July 2007 Internal T.I. 2007-0237541I7 F - Frais de déplacement, de pension et de logement Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(l.1) lodging and travel expenses of parents incurred during preparatory and recuperation period for a spinal transplant operation for twin children are covered, but not costs of hospital attendants
17 July 2007 External T.I. 2007-0237811E5 F - Régime à traitement différé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) s. 8(1)(n) for required repayment of deferred salary under a deferred salary leave plan
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) requirement to return to work for the period of leave
22 August 2007 External T.I. 2007-0242721E5 F - Frais de déménagement engagés par un étudiant Income Tax Act - Section 62 - Subsection 62(1) - Paragraph 62(1)(c) student cannot deduct moving expenses against future employment income
23 August 2007 Internal T.I. 2007-0245591I7 F - Déductibilité d'un montant de pension alimentaire Income Tax Act - Section 60 - Paragraph 60(b) payments not established to be periodic
2007-08-24 23 July 2007 Internal T.I. 2007-0228601I7 F - Redemption of U.S. Denominated Shares Income Tax Act - Section 39 - Subsection 39(2) s. 86 exchange of US-dollar denominated prefs does not affect patrimony of issuer
Income Tax Act - Section 84 - Subsection 84(3) MacMillan Bloedel distinguished where redemption for preferred shares rather than cash
2007-08-10 23 July 2007 Internal T.I. 2007-0234691I7 F - Foreign Exchange Gains/Losses and CDA Income Tax Act - Section 39 - Subsection 39(2) FX losses sustained on the maturity of commercial paper deemed under s. 39(2) to be realized at year end, so that CDA deduction deferred until then
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(ii) s. 39(2) capital losses not deducted until year end
29 June 2007 Internal T.I. 2007-0229431I7 F - Excessive Capital Dividend Income Tax Act - Section 184 - Subsection 184(3) - Paragraph 184(3)(d) proration approach applied where dividend not fully paid
2007-07-20 10 July 2007 External T.I. 2006-0177881E5 F - Allégement transitoire Income Tax Act - Section 112 - Subsection 112(3) transitional relief not lost on s. 85(1) exchange
11 July 2007 External T.I. 2006-0192101E5 F - Disposition d'actions par un non-résident Income Tax Act - Section 212.1 - Subsection 212.1(1) relief under the 1998 federal budget was not implemented – deemed dividend where NR individual effects pipeline transaction
11 July 2007 External T.I. 2006-0206391E5 F - Choix du paragraphe 70(6.2) - société de personnes Income Tax Act - Section 70 - Subsection 70(6.2) s. 70(6.2) election not available for part of a partnership interest, whereas it is made for particular shares
Income Tax Act - Section 248 - Subsection 248(1) - Property each share, unlike a partnership unit, is a distinct property
12 July 2007 Internal T.I. 2007-0240681I7 F - Indiens - Cotisations à un RPA Income Tax Act - Section 147.2 - Subsection 147.2(4) - Paragraph 147.2(4)(a) s. 8(1)(m) deduction prorated based on percentage of work performed on the reserve
2007-07-13 9 July 2007 External T.I. 2006-0200791E5 F - Actions sous entiercement Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation shares of public-company franchisor could be used in the franchisee’s business if required to be held by it
4 July 2007 Internal T.I. 2007-0237631I7 F - Frais de repas - Secteur du taxi Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) ss. 18(1)(h) and (a) less restrictive than s. 8(4) but does not permit deduction of self-employed tax driver’s lunch expenses
4 July 2007 Internal T.I. 2007-0238391I7 F - Crédit pour stage en milieu de travail Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) Quebec job tax credit included under s. 12(1)(x) if not a wage expense reduction
Income Tax Act - Section 12 - Subsection 12(2.1) inclusion under s. 12(2.1) where Quebec job credit received by partnership members
2007-07-06 30 May 2007 External T.I. 2006-0183851E5 F - Paragraphs 83(2) and 84.1(1) Income Tax Act - Section 83 - Subsection 83(2) s. 83(2) election can be made on a s. 84.1 deemed dividend
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) s. 84.1(1) dividend is payable per s. 84(7) so that s. 83(2) election available
29 May 2007 Internal T.I. 2007-0223381I7 F - Capital Dividend Account Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) s. 87(2)(z.1) causes subsidiary CDA balances to flow through to the parent
14 June 2007 Internal T.I. 2007-0229311I7 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (b) recording of dividend payable and dividend receivable between sub and parent was insufficient to constitute the payment of a capital dividend, so that there was no CDA addition
General Concepts - Payment & Receipt making accounting entries does not constitute payment of a dividend
Income Tax Act - Section 184 - Subsection 184(3) invalid payment of capital dividend (because no payment) was subject to Pt. III tax (given valid s. 83(2) election) for which no s. 184(3) election could be made as no payment

Pages