Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-12-07 7 November 2007 Internal T.I. 2007-0253861I7 F - Partie non-imposable du gain en capital Income Tax Act - Section 132.1 - Subsection 132.1(2) no ACB increase under s. 132.1(2) if no previous reduction under s. 53(2)(h)(i.1)
Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) - Clause 53(2)(h)(i.1)(B) - Subclause 53(2)(h)(i.1)(B)(I) s. 53(2)(h)(i.1)(B)(I) designation does not increase unit ACB
2007-11-30 22 November 2007 External T.I. 2007-0226001E5 F - Jugement de divorce - Montant forfaitaire Income Tax Act - Section 60 - Paragraph 60(b) lump sum paid by ex-spouse’s corporation could not be maintenance
14 November 2007 Internal T.I. 2007-0254601I7 F - Paiement incitatif - Bon de souscription Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iii) value of share purchase warrant granted to asset vendor as an inducement to agree to a longer term services agreement with purchaser was includible under s. 12(1)(x)
Income Tax Act - Section 52 - Subsection 52(1) value of share purchase warrant included in recipient’s income under s. 12(1)(x) increased ACB of warrant
23 November 2007 Internal T.I. 2007-0258051I7 F - REÉR - Hypothèque légale Income Tax Act - Section 146 - Subsection 146(2) - Paragraph 146(2)(c.3) - Subparagraph 146(2)(c.3)(ii) tax debtor can pledge his RRSP to CRA without triggering an income inclusion under s. 146(12)
2007-11-23 6 November 2007 Internal T.I. 2005-0152091I7 F - Frais de déplacement - activité de divertissement Income Tax Act - Section 67.1 - Subsection 67.1(1) cost of transporting independent sales reps from an event was “in respect of … entertainment”
14 November 2007 External T.I. 2007-0245631E5 F - Retenue à la source -employé à l'étranger Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(c) employment for Canadian employer exercised in France and not exempt from French tax was not deemed to be exercised in Canada
Income Tax Regulations - Regulation 104 - Subsection 104(2) no source deductions required of Canadian employer for employee exercising duties in France
2007-11-16 8 November 2007 External T.I. 2006-0181621E5 F - Article 67.1 - Frais de transport et de logement Income Tax Act - Section 67.1 - Subsection 67.1(1) costs of transporting customers to an entertaining event and of their accommodation were “in respect of … entertainment”
2007-11-09 28 August 2007 External T.I. 2006-0190971E5 F - Gain et perte sur change étranger Income Tax Act - Section 39 - Subsection 39(2) trader in US shares realized FX gains or losses as USD payables settled and on transfers in and out of USD cash account
29 September 2007 External T.I. 2006-0204361E5 F - Gain et perte sur change étranger Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) FX gains or losses are realized when funds in a U.S.-dollar account are applied to purchase U.S. securities
6 November 2007 External T.I. 2007-0227241E5 F - Crédit de taxe sur le capital - moment Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose Quebec capital tax before credit deduction is deductible in computing income
6 November 2007 External T.I. 2007-0234681E5 F - Crédit de taxe sur le capital - moment Income Tax Act - Section 13 - Subsection 13(7.1) - Paragraph 13(7.1)(f) Quebec capital tax credit is receivable at end of taxation year
2007-11-02 10 October 2007 External T.I. 2007-0249251E5 F - Utilization of Losses - Acquisition of control Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) - Subparagraph 111(5)(a)(i) an interruption of activity severs one business into two
16 October 2007 Internal T.I. 2007-0253161I7 F - Revenu d'intérêts réputés Income Tax Act - Section 17 - Subsection 17(1) “amount owing” [“créance"] refers to current rather than original balance
2007-10-26 15 October 2007 External T.I. 2007-0239491E5 F - Prepayment of Reassessments Income Tax Act - Section 161 - Subsection 161(1) payments made in advance of a reassessment reduce arrears interest under s. 161(1)
10 October 2007 External T.I. 2007-0243601E5 F - Proposal - Taxation year end Income Tax Act - Section 128 - Subsection 128(1) person who made a successful proposal was not a bankrupt
12 October 2007 External T.I. 2007-0252941E5 F - OSBL et organisation agricole Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(e) "agricultural organization" has its ordinary meaning/ss. 149(1)(e) and (l) can overlap
2007-10-19 3 October 2007 External T.I. 2007-0230671E5 F - Paragraphe 12 du IT-338R2 Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) there is a s. 53(1)(e)(iv) basis bump for underlying debt under s. 98(5) wind-up
28 September 2007 External T.I. 2007-0241341E5 F - Crédit pour la condition physique des enfants Income Tax Act - Section 118.03 - Subsection 118.03(1) - Eligible Fitness Expense summer or sports camp is ineligible if not for a period of at least five consecutive calendar days
2007-10-05 25 September 2007 Internal T.I. 2007-0226751I7 F - Gain en capital versus revenu d'entreprise Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b) property regular refurbished for leasing then resale at a gain was inventory
Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment the regular refurbishing, rental then sale at a gain of machines gave rise to business profits
21 September 2007 External T.I. 2007-0229191E5 F - Agent de voyages & impôt de la partie I.3 Income Tax Act - Section 181 - Subsection 181(3) - Paragraph 181(3)(b) - Subparagraph 181(3)(b)(i) customer advances received by travel agents and reported as deferred revenue in their balance sheets were required to be included in taxable capital even though amounts held in trust
Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(c) customer advances received by travel agents and reported as deferred revenue in their balance sheets were “advances”
20 September 2007 External T.I. 2007-0248451E5 F - Donation lors d'un encan Income Tax Act - Section 248 - Subsection 248(30) s. 248(30) has no impact in Quebec
26 September 2007 External T.I. 2007-0252621E5 F - Crédit pour la création d'emplois pour apprentis Income Tax Act - Section 127 - Subsection 127(9) - Investment Tax Credit - Paragraph (m) 12 month extension also applies to AJCTC
2007-09-28 11 September 2007 External T.I. 2006-0195851E5 F - Crédit pour impôt étranger Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax if Romania denies refund of withholding tax improperly held on management fees, CRA nonetheless will deny FTC
Treaties - Income Tax Conventions - Article 7 reasonable management fees come within the business profits rather than other income Article
12 September 2007 External T.I. 2006-0211121E5 F - Fiducie non-résidente Income Tax Act - Section 94 - Subsection 94(1) - Resident Contributor must generally consider whether the mooted resident contributor was resident in Canada at the trust’s year end and had made a contribution thereto then or prior thereto
Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property generally no reporting obligations on T1135 where interest in non-resident trust acquired for not consideration
13 September 2007 External T.I. 2006-0214631E5 F - Déboursé pour usufruit ou droit d'usage Income Tax Act - Section 248 - Subsection 248(3) instalments of purchase price for usufruct were cost of capital interest in a trust
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

Pages