Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-02-16 22 January 2007 External T.I. 2006-0212641E5 F - Crédit de taxe sur le capital du Québec 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
Income Tax Act - Section 13 - Subsection 13(1) recapture of depreciation previously claimed for farm was farming income
6 October 2006 Roundtable, 2006-0197111C6 F - Le paragraphe 70(5.3) de la Loi. Income Tax Act - Section 70 - Subsection 70(5.3) s. 70(5.3) does not deal with impact of life insurance proceeds on different classes of shares
27 October 2006 External T.I. 2006-0212001E5 F - Immobilisations admissibles - Quotas Income Tax Act - Section 14 - Subsection 14(3) pro rata, not FIFO, method should be used to determine what portion of disposed of farm quota units were derived from a s. 14(3) pool
2006-12-29 15 December 2006 External T.I. 2005-0159931E5 F - Frais de fonctionnement et allocation automobile Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) where employee reimbursed for full operating cost of vehicle, personal use portion is a benefit
6 December 2006 External T.I. 2005-0163291E5 F - Résiliation d'une entente contractuelle Income Tax Act - Section 9 - Timing lump sum payment for termination of services contract likely fully deductible when paid
6 December 2006 External T.I. 2006-0152101E5 F - Disposition d'un domaine résiduel Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) principal residence exemption extends to s. 43.1(1) gain
Income Tax Act - Section 43.1 - Subsection 43.1(2) - Paragraph 43.1(2)(b) ACB addition to residual interest in farm principal residence disposed of to family farm corporation
30 October 2006 External T.I. 2006-0170071E5 F - Attribution de revenus - société en commandite Income Tax Act - Section 103 - Subsection 103(1) allocation of deferred gain to partners, who previously had contributed on a s. 97(2) rollover basis, seemed reasonable
4 December 2006 External T.I. 2006-0185301E5 F - Allocation automobile Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) allowance cannot be bifurcated so as to result in a component reasonable allowance
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(xi) meaning of mixed allowance
6 October 2006 Roundtable, 2006-0197131C6 F - Police soins de longue durée Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(q) premiums for policy providing both fixed benefit to cover costs of staying in a long-term care facility and of nursing care, would not qualify
6 October 2006 Roundtable, 2006-0197161C6 F - Étendu de l'allégement - Bulletin IT-470R Income Tax Act - Section 3 - Paragraph 3(a) potential exemption of commissions earned on life insurance policies issued to family members
16 November 2006 External T.I. 2006-0198811E5 F - Article 28 - Entreprise agricole Income Tax Act - Section 248 - Subsection 248(1) - Farming hatchery is farming because the product is produced by “natural biological growth and change”
4 December 2006 Internal T.I. 2006-0211061I7 F - Rentes pour incapacité et stabilisation sociale Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) monthly disability benefits after accident, and monthly top-up payment after return to work at lower pay, came within ss. 56(1)(v) and 110(1)(f)(ii)
2006-12-15 6 October 2006 Roundtable, 2006-0197041C6 F - Rente prescrite et hypothèque mobilière Income Tax Regulations - Regulation 304 - Subsection 304(1) - Paragraph 304(1)(c) - Subparagraph 304(1)(c)(iv) - Clause 304(1)(c)(iv)(D) prescribed annuity contract can be encumbered by a moveable hypothec

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