Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-12-08 30 November 2006 External T.I. 2006-0191541E5 F - Primes d'assurance-vie et d'assurance-invalidité Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) premiums on life insurance policy required by lender deductible even though loan government-guaranteed, but premiums on lender-required disability policy not deductible
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures premiums on disability policy required by lender are capital expenditures
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.1) guarantee fee does not include premiums on lender-required insurance policy
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (j) tax free receipt of life insurance proceeds by lender on policy required by it of the borrower
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (h) tax free receipt of disability insurance proceeds by lender on policy required by it of the borrower
6 October 2006 Roundtable, 2006-0197151C6 F - Acquisition selon convention entre actionnaires Income Tax Act - Section 70 - Subsection 70(9.2) children’s exercise of a right in a shareholders’ agreement to acquire farmco shares that is triggered on their father’s death would not be a consequence of his death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) children exercising right in shareholders’ agreement to acquire shares on father's death would not be a consequence of his death, cf. if pursuant to his will
2006-12-01 11 December 1995 Internal T.I. 95056370 - Traitement fiscal - versement particulier - indien Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) benefits paid to Cree hunters regarding their hunting and trapping activities were s. 56(1)(u) support payments that were not exempted under s. 87
Other Legislation/Constitution - Federal - Indian Act - Section 87 benefits paid to Crees to support their traditional hunter lifestyle were social assistance
2006-11-17 15 November 2006 External T.I. 2004-0083461E5 F - Feb. 2004 Proposals - Paragraph 85(1)(d.11) Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(d.11) application date of s. 85(1)(d.11)
7 October 2005 Roundtable, 2005-0140891C6 F - Disposition d'une immobilisation Income Tax Act - Section 14 - Subsection 14(1) - Paragraph 14(1)(b) illustration of application of formula where the vendor of goodwill previously acquired it in a NAL transfer at a gain to the transferor
7 October 2005 Roundtable, 2005-0141021C6 F - Actions admissibles de petite entreprise Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation if Opco and Realtyco are held equally by two unrelated individuals, Realtyco is not an SBC if it holds more than 50% of its assets as debt of Opco
7 October 2005 Roundtable, 2005-0141151C6 F - Lotissement de biens Income Tax Act - Section 248 - Subsection 248(21) s. 248(21) can apply to partitioning a building into separately-owned units
12 September 2006 Internal T.I. 2005-0147801I7 F - Déduction pour frais judiciaires d'un employé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) legal fees incurred in defending against allegations of harassment were non-deductible
10 November 2006 External T.I. 2006-0174681E5 F - Salaire versé par un employé à un adjoint Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) position in IT-352R2, para. 1 consistent with Longtin
8 November 2006 External T.I. 2006-0176171E5 F - Revente d'un bien amortissable - alinéa 13(7)e) Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) no deemed CCA class for s. 13(7)(e) denial
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) - Subparagraph 39(1)(b)(i) capital loss denied on sale of building – proceeds reflected in UCC reduction
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - F application of disposition expenses under Element F
7 November 2006 External T.I. 2006-0201261E5 F - REER: Legs à une fiducie exclusive au conjoint Income Tax Act - Section 146 - Subsection 146(8.1) surviving spouse would be "beneficially interested" in the estate of a deceased RRSP annuitant by virtue of being a beneficiary of a testamentary trust
14 November 2006 External T.I. 2006-0201371E5 F - FERR: Legs à une fiducie exclusive au conjoint Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit - Paragraph (a) amount funded with capital encroachment out of spousal trust equaling RRIF of testator would be eligible for the election
24 October 2006 Internal T.I. 2006-0203901I7 F - Avantage automobile Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) bus stop near the employee’s home does not qualify as a pick-up point regarding the exception for employer-assisted commuting
16 November 2006 External T.I. 2006-0204901E5 F - Meaning of Full Voting Rights Income Tax Act - Section 186 - Subsection 186(2) requirement for special meeting of preferred shareholders to approve an adverse amendment to articles does not detract from full voting rights of common shareholders
8 November 2006 External T.I. 2006-0208601E5 F - Crédit d'impôt pour transport en commun Income Tax Act - Section 118.02 - Subsection 118.02(1) - Public Commuter Transit Services definition extends to ferrying of motorists
2006-11-10 27 October 2006 External T.I. 2005-0157321E5 F - Winding-up of a wholly-owned corporation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(ii) character of property usually regarded as retained in the hands of the parent
Income Tax Act - Section 9 - Capital Gain vs. Profit - Goodwill character of property usually regarded as retained in the hands of the parent
26 October 2006 External T.I. 2006-0170341E5 F - Subsections 87(2.1) and 87(2.11) Income Tax Act - Section 87 - Subsection 87(2.1) s. 87(2.11) does not affect the aging of previously-incurred losses and is relevant to carry-backs by the Amalco
Income Tax Act - Section 87 - Subsection 87(2.11) purposes of s. 87(2.11) is to allow parent to use losses realized by the new corporation (so as to carry back)
2006-11-03 19 October 2006 Internal T.I. 2006-0173261I7 F - Avantage conféré par une fiducie Income Tax Act - 101-110 - Section 105 - Subsection 105(2) no s. 105(2) benefit if no trust income, and benefit to beneficiary would generate a s. 104(6) deduction
Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) - Subparagraph (c.1)(iii) corporation as contingent beneficiary of cottage trust precludes use of principal residence exemption
Income Tax Act - 101-110 - Section 105 - Subsection 105(1) tolerance re use of trust personal use property by beneficiary or related person does not extend to unrelated person, but no benefit re payment of interest expense
Income Tax Act - Section 15 - Subsection 15(1) no s. 15(1) benefit if trust confers benefit directly on shareholder of a corporate beneficiary
31 October 2006 External T.I. 2006-0173731E5 F - Paragraphe 20(3) de la Loi Income Tax Act - Section 20 - Subsection 20(3) application of s. 20(3) where bank borrowing is used to repay a NIB loan used for business purposes
24 October 2006 External T.I. 2006-0174091E5 F - Disposition de parts d'un fonds réservé Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) exchange of segregated fund units with redemption charges for other units without, is a disposition
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (a) unit for unit exchange in segregated fund was disposition
30 October 2006 Internal T.I. 2006-0199721I7 F - Escompte sur vente de compte clients Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables the sale of receivables that were generated on income account is on income account
2006-10-27 3 October 2006 External T.I. 2006-0204181E5 F - Déduction de frais de thérapie Income Tax Act - Section 118.4 - Subsection 118.4(1) - Paragraph 118.4(1)(c) scope of activities of daily living
2006-10-20 28 September 2006 Internal T.I. 2006-0202901I7 F - Subsection 80(4) - Impact on the CDA Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(ii) application of net capital losses against a forgiven amount does not reduce the reduction for the related capital losses under s. (a)(ii) of the CDA computation
28 September 2006 External T.I. 2006-0197841E5 F - Shareholders agreement & 256(1.4) Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) s. 256(1.4) technically applies where each 25% shareholder has an obligation to acquire shares of another shareholder offering its shares
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) technically a contingent right to acquire control where each 25% shareholder has an obligation to acquire shares of another shareholder offering its shares
2006-10-13 21 September 2006 External T.I. 2005-0147821E5 F - Utilisation d'un véhicule Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) standby benefit where vans available to foremen during after hours

Pages