Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
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

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