Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-07-06 14 June 2007 Internal T.I. 2007-0229311I7 F - Capital Dividend Account General Concepts - Effective Date a declared dividend cannot be revoked
3 July 2007 External T.I. 2007-0236551E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Student post-doctoral fellow is not a student
2007-06-29 21 June 2007 External T.I. 2005-0157861E5 F - Cotisation professionnelle Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) membership in a municipal employees’ association was not necessary for the maintenance of a professional status
13 June 2007 External T.I. 2007-0226261E5 F - Convention Émirats Arabes Unis Treaties - Income Tax Conventions - Article 4 meaning of “substantially all” in UAE Convention informed by its meaning under ITA
Treaties - Income Tax Conventions - Article 3 undefined term in Convention informed by its domestic interpretation by CRA
Income Tax Regulations - Regulation 5907 - Subsection 5907(11.2) - Paragraph 5907(11.2)(a) FA required to have its central management and control in the Treaty country in addition to satisfying the Treaty residence test
18 June 2007 Internal T.I. 2007-0231861I7 F - Principale place d'affaires Income Tax Act - Section 8 - Subsection 8(13) - Paragraph 8(13)(a) - Subparagraph 8(13)(a)(i) “principally performed” test references the proportion of time spent at the home office
21 June 2007 Internal T.I. 2007-0239681I7 F - perte sur prêts irrécouvrables Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) acquisition of shares through an RRSP can establish an income-producing purpose re a non-interest loan made directly to the corp
2007-06-22 13 June 2007 External T.I. 2006-0178031E5 F - Biens détenus par des fiducies testamentaires Income Tax Act - 101-110 - Section 104 - Subsection 104(2) property settled on a spousal trust that, on the spouse/s death, passes to testamentary trusts for the testator’s children, originates from him for s. 104(2)(a) purposes
14 June 2007 External T.I. 2006-0198341E5 F - L'EXPRESSION "VIT DANS UNE RELATION CONJUGALE" Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner meaning of "cohabits… in a conjugal relationship
14 June 2007 External T.I. 2006-0209341E5 F - Utilisation d'un bien d'une société de personnes Income Tax Act - 101-110 - Section 103 - Subsection 103(1) personal use of property is a factor going to the reasonableness of the profit-sharing arrangements
Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d) personal use of property could engage s. 96(2.2)(d)
Income Tax Act - Section 246 - Subsection 246(1) conferral-of-benefit provisions do not apply to a partner’s personal use of partnership property other than car
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose partner’s use of partnership property is addressed by denying partnership income deductions and under s. 103, rather than through benefit-conferral provisions
2007-06-15 5 June 2007 External T.I. 2006-0174521E5 F - Avantages imposables - Ordinateur et Internet Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) 85% personal use of employer-funded home computer does not generate taxable benefit if computer is essential to performance of employment duties
29 May 2007 Internal T.I. 2006-0217401I7 F - 110(1)d): Moment de la conclusion de la convention Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) - Subparagraph 110(1)(d)(ii) - Clause 110(1)(d)(ii)(A) where options previously granted were not exercisable until an employer “Exercise Notice,” the stock option agreement was made at such notice time
Income Tax Act - Section 7 - Subsection 7(5) not giving exercise notice to employees who are not shareholders (so that they cannot exercise their options) may engage s. 7(5)
7 June 2007 External T.I. 2007-0228831E5 F - Pénalité au rachat d'une obligation Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) bond redemption premium entered into computation of capital gain or loss of bondholder notwithstanding withholding of premium from accrued interest
2007-06-08 9 May 2007 External T.I. 2006-0189931E5 F - Renonciation à une fiducie par un conjoint Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) renunciation of interest in spousal trust not a disposition to the family beneficiaries
Income Tax Act - Section 248 - Subsection 248(1) - Disposition extinguishment of trust interests on their renunciation is a disposition of the renounced interest, but resulting variation of trust to accelerate distribution entitlements is not
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not engage s. 104(4) until distribution
Income Tax Act - Section 70 - Subsection 70(6) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not deny s. 70(6) rollover
30 May 2007 External T.I. 2006-0200271E5 F - Bien agricole et résidence principale Income Tax Act - Section 40 - Subsection 40(4) s. 45(3) election did not extend time that farm house was a principal residence, once the occupant went to nursing home
Income Tax Act - Section 45 - Subsection 45(3) no change of use when occupant of residence moved into a nursing home
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) principally references over 50% of use
11 May 2007 External T.I. 2006-0214351E5 F - Transfert d'un droit de propriété Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) where duplex co-owned by husband and wife, the one unit occupied by them can be designated as a principal residence – but this changes when daughter moves into the 2nd unit
Income Tax Act - Section 248 - Subsection 248(1) - Property an occupied unit in a co-owned duplex can be designated as a principal residence
30 May 2007 External T.I. 2006-0218101E5 F - Interaction entre 125.4(1) et 256(1.2)c) Income Tax Regulations - Regulation 1106 - Subsection 1106(2) s. 256(1.2)(c) does not inform the definition of prescribed taxable Canadian corporation
Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(c) s. 256(1.2)(c) does not affect the determination of de facto control
28 May 2007 External T.I. 2007-0219801E5 F - Paiement de soutien aux enfants Income Tax Act - Section 74.1 - Subsection 74.1(2) child assistance payment is transferred to a minor child is subject to s. 74.1(2) attribution
4 June 2007 Internal T.I. 2007-0229251I7 F - Montants reçus pour aide personnelle à domicile Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit no income to parental caregiver in situations similar to Pellerin
24 May 2007 Internal T.I. 2007-0235681I7 F - Frais de bureau à domicile Income Tax Act - Section 18 - Subsection 18(12) home office expenses to earn income from property are not subject to s. 18(12)
5 June 2007 Internal T.I. 2007-0237291I7 F - Disposition d'une police d'assurance-vie Income Tax Act - Section 148 - Subsection 148(7) s. 148(7) applicable to gift of policies by partners to a limited partnership
2007-06-01 24 May 2007 External T.I. 2006-0209081E5 F - Withholding Source Deductions - Trustee Fees Income Tax Act - Section 248 - Subsection 248(1) - Office fees if trustees of REIT based partly on the number of meetings they attended were from an office
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration fees received by REIT trustees including per-meeting fees were salary and wages subject to source deductions and T4 reporting
2007-05-25 23 May 2007 External T.I. 2006-0215721E5 F - Application de l'alinéa 40(2)b) Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) on sale of land and second building, taxpayer can include the years of occupation of predecessor building that he demolished
22 May 2007 External T.I. 2007-0228611E5 F - Crédit pour la création d'emplois pour apprentis Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice year means 12 months/”contract” for apprentice can be the collective agreement
2007-05-18 11 May 2007 External T.I. 2005-0156891E5 F - Déductibilité des intérêts - retour de capital Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) return of share capital or partnership contribution eliminated interest deductibility on loan to fund share subscription or partnership capital contribution
11 May 2007 External T.I. 2006-0191681E5 F - Déductibilité des intérêts - retour de capital Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) no interest deductibility where share subscription using bank loan is immediately followed by stated capital distribution in same amount to pay off personal mortgage
7 May 2007 Internal T.I. 2007-0228521I7 F - Allocation pour frais de déplacement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) daily minimum for kilometerage allowance was acceptable as it was nominal and intended to compensate for expenses

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