Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-06-15 29 May 2007 Internal T.I. 2006-0217401I7 F - 110(1)d): Moment de la conclusion de la convention 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 - 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 - 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
2007-05-11 30 April 2007 External T.I. 2007-0230441E5 F - Crédit d'impôt pour condition physique des enfants Income Tax Act - Section 118.03 - Subsection 118.03(1) - Eligible Fitness Expense determination as to whether the program qualifies should be made by sponsor
2007-04-27 17 April 2007 External T.I. 2007-0230381E5 F - Option d'achat de biens immeubles Income Tax Act - Section 49 - Subsection 49(1) - Paragraph 49(1)(a) allocation of option proceeds between principal residence and business asset to be allocated based on the reasonable value attributed to each type of property
2007-04-20 12 April 2007 External T.I. 2007-0220561E5 F - Crédit pour études - stages de formation pratique Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program paid internships are not necessarily disqualifying
2007-04-06 21 March 2007 External T.I. 2005-0142121E5 F - Don au décès d'un contribuable Income Tax Act - Section 118.1 - Subsection 118.1(18) gift of shares to a charity is not of non-qualifying securities if immediately after the ownership transfer, the estate now deals at arm's length with the corporation
Income Tax Act - Section 118.1 - Subsection 118.1(5) bequest of shares to spousal trust, with the shares then directed to a registered charity on the spouse’s is treated as a gift of an equitable trust interest by the deceased
20 March 2007 External T.I. 2006-0173711E5 F - Paiement des impôts d'une fiducie Income Tax Act - Section 105 - Subsection 105(1) s. 105(1) does not apply where trustee pays trust taxes
Income Tax Act - Section 246 - Subsection 246(1) s. 246(1) does not apply where trustee pays trust taxes
Income Tax Act - Section 74.1 - Subsection 74.1(2) attribution may apply where father pays income tax liability of trust for his children
20 February 2007 External T.I. 2006-0210291E5 F - Remboursement des billets d'avion Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no taxable benefit for business class ticket reimbursement – but benefit if employee is reimbursed for 2 economy tickets for the employee and spouse
27 March 2007 External T.I. 2006-0217511E5 F - Régime d'assurance collective Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) payment by employer of all rather than half the premiums for a group insurance plan would not oust the exclusion
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) CRA will not accept a retroactive change to a plan’s tax status
21 February 2007 Internal T.I. 2006-0218421I7 F - Pension alimentaire - date d'exécution Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day retroactive nature of a divorce judgment is to be respected
General Concepts - Effective Date divorce judgment with stated retroactive effect caused the amounts to “be required to be made” on the earlier date
27 March 2007 External T.I. 2007-0226801E5 F - Orphelin(e)s de Duplessis Income Tax Act - Section 3 - Paragraph 3(a) compensation to Duplessis orphans was non-taxable
2007-03-30 14 March 2007 External T.I. 2006-0169821E5 F - REÉÉ - définition de souscripteur Income Tax Act - Section 146.1 - Subsection 146.1(1) - Subscriber - Paragraph (c) legatees of subscriber are subscribers
14 March 2007 External T.I. 2007-0219601E5 F - Police d'assurance-vie cédée en garantie Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) borrowing must be by the taxpayer

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