Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-03-16 9 March 2007 External T.I. 2006-0218501E5 F - Application de 75(2) lors d'une émission d'actions Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) inapplicable to a corporation issuing shares to a trust of which it may become a beneficiary because it did not own the shares before their issuance
2007-03-09 26 February 2007 External T.I. 2005-0159431E5 F - Renonciation aux revenus d'une fiducie Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (c) renunciation of income not yet realized is not a contribution to the trust
Income Tax Act - 101-110 - Section 106 - Subsection 106(2) s. 106(2) inapplicable to renunciation of income not yet realized
2007-02-23 16 February 2007 External T.I. 2006-0200541E5 F - Prestation universelle pour la garde d'enfants Income Tax Act - Section 74.1 - Subsection 74.1(2) UCCB benefit put into separate bank account for child subject to attribution
12 February 2007 External T.I. 2006-0214141E5 F - Régime d'assurance salaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) a qualifying group disability plan could utilize individual policies, but s. 6(1)(a)(i) exclusion not available where plan restricted to the two shareholder-managers
Income Tax Act - Section 15 - Subsection 15(1) benefit from corporate employer’s payment of premiums under disability plan restricted to the two shareholder-managers was received qua shareholder rather than employee
15 February 2007 External T.I. 2006-0216851E5 F - REÉÉ - Définition de fiducie Income Tax Act - Section 146.1 - Subsection 146.1(1) - Trust - Paragraph (d) quaere whether payer can have control rights over the use of the RESP proceeds by university
2007-02-16 6 February 2007 External T.I. 2006-0170921E5 F - Capital Gain Strip Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3)(a)(ii) exclusion applies when Opco, in which two unrelated individuals having special voting shares, spins off real estate to Opco’s Holdco
16 November 2006 External T.I. 2006-0203131E5 F - Régime à traitement différé Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) failure for leave to be taken at the end of the deferral period
Income Tax Act - Section 5 - Subsection 5(1) advances received were salary rather than loans and, when repaid, reduced employment income
12 February 2007 External T.I. 2006-0205981E5 F - DAS programme de soutien financier pour handicapés Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(r) assistance paid to those with disabilities to assisting taking up employment came within s. 56(1)(r)
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration - Paragraph (h) assistance paid to those with disabilities to assisting taking up employment was “remuneration” subject to source deductions
18 December 2006 Internal T.I. 2006-0208611I7 F - Indemnités pour lésions professionnelles Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) application of ss. 56(1)(v) and 110(1)(f)(ii) to non-contractual amounts paid by bank pursuant to Canada Labour Code to Ontario employees, not in excess of the WSIB scales
Income Tax Regulations - Regulation 232 - Subsection 232(4) Reg. 232(4) exclusions are broader than those listed
22 January 2007 External T.I. 2006-0212641E5 F - Crédit de taxe sur le capital du Québec Income Tax Act - Section 13 - Subsection 13(7.1) Quebec tax credit for qualified investments is government assistance recognized under s. 13(7.1) rather than s. 12(1)(x)
Income Tax Act - Section 127 - Subsection 127(11.1) - Paragraph 127(11.1)(b) Quebec tax credit for qualified investments is deducted under s. 127(11.1)(b) in accordance with the ITTN No. 29 timing
25 January 2007 External T.I. 2006-0213961E5 F - Rémunération, assurance salaire, indemnité CSST Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) - Subparagraph 6(1)(f)(iii) wage maintenance amount paid in advance of workers’ compensation was reportable as s. 6(1)(f)(iii) income, with s. 8(1)(n) deduction when repaid after receipt under s. 56(1)(v)
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) amount paid by employer in advance of workers’ compensation was reportable as s. 6(1)(f)(iii) income, with the employee later taking a s. 8(1)(n) deduction and a s. 56(1)(v) inclusion
2007-02-09 26 January 2007 External T.I. 2005-0157751E5 F - Don d'un duplex et changement d'usage Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) generally appropriate to allocate the deemed proceeds between residence and rental portion on building square footage basis, with land to follow suit
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(b) 1/2 step-up limitation where change of use
17 January 2007 Internal T.I. 2006-0216331I7 F - Association Income Tax Act - Section 256 - Subsection 256(2) administrative policy regarding late elections by third corporation
2007-01-26 6 October 2006 Roundtable, 2006-0197031C6 F - Obligation achetée à prime Income Tax Act - Section 54 - Adjusted Cost Base premium paid on secondary purchase of bond is part of bond ACB
Income Tax Act - Section 12 - Subsection 12(9.1) purchase of bond at a premium does not engage s. 12(9.1)
Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(b) bond that was purchased at a premium is not a Reg. 7000(1)(b) obligation
6 October 2006 Roundtable, 2006-0197091C6 F - Sens de série de paiements périodiques Income Tax Act - Section 60.01 successive partial IRA surrenders are excluded as “a series of periodic payments”
19 January 2007 Internal T.I. 2006-0216451I7 F - Fondation privée investissant dans une S.P. Income Tax Act - Section 96 separate legal personality of DRUPA (or DRULPA) partnerships does not preclude them from being partnerships
Income Tax Act - Section 149.1 - Subsection 149.1(4) - Paragraph 149.1(4)(a) foundation’s registration subject to revocation because it had invested in a Delaware partnership (with stated separate existence) carrying on business
2007-01-19 17 January 2007 External T.I. 2005-0152601E5 F - Politique d'application RS & DE 1996-02 Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) LGL and Tigney pro rata approach to in-Canada requirement
10 January 2007 External T.I. 2006-0171132E5 F - Revenu locatif Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit house rented to daughter at below-market rent was not a source of income – rents excluded form income
Income Tax Act - Section 54 - Principal Residence - Paragraph (a) exemption potentially available re bungalow rented (but not as a source of income) to daughter
16 January 2007 External T.I. 2006-0217641E5 F - Dépenses de vêtements - travailleur indépendant Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) clothing expenses of personal stylist are non-deductible
2007-01-12 5 January 2007 External T.I. 2005-0133321E5 F - Validité d'un REER Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(c) RRSP arrangement that was not a civil law trust was cured by s. 248(3)(c)
3 January 2007 External T.I. 2006-0180601E5 F - Facturation entre deux sociétés affiliées. Income Tax Act - Section 230 - Subsection 230(1) invoices between domestic affiliates not required, but should be retained for evidentiary purposes consistently with IC-78-10R4
General Concepts - Evidence invoices between domestic affiliates are not required, but are recommended
15 December 2006 External T.I. 2006-0182471E5 F - Intérêts " explicitement identifiés " Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) whether a court order or settlement “explicitly identifies” pre-judgment interest, so as to be taxable, is question of fact
2007-01-05 13 December 2006 External T.I. 2005-0156201E5 F - Records on Heat Sensitized Paper Income Tax Act - Section 230 - Subsection 230(1) non-compliance with s. 230(1) does not preclude establishing an expense
General Concepts - Evidence documentary requirements if a receipt is not available
2 January 2007 External T.I. 2006-0156421E5 F - Frais médicaux Income Tax Act - Section 118.4 - Subsection 118.4(2) psychotherapists are not authorized to practise medicine in Quebec and, thus, are not medical practitioners
21 December 2006 External T.I. 2006-0170851E5 F - Option d'achat de biens immeubles Income Tax Act - Section 49 - Subsection 49(1) capital gain when amount received for extending an option
Income Tax Act - Section 49 - Subsection 49(4) refiling when option exercise in subsequent year

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