Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2017-03-15 2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.7, 2016-0674811C6 F - Allocations automobiles & dépenses afférentes Income Tax Regulations - Regulation 200 - Subsection 200(3) correction of T4s
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.8, 2016-0674851C6 F - HBTC - Acquisition by way of gift Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home gifted home can qualify for the HBTC
2017-02-08 19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) s. 13(7)(e) applicable to s. 107(2.1) distribution but not s. 104(5) deemed disposition
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) s. 107(2) generally available where beneficiary assumes trust debt
Income Tax Act - Section 248 - Subsection 248(1) - Personal Trust non-commital as to whether assumption of debt could constitute tainting consideration
Income Tax Act - 101-110 - Section 107 - Subsection 107(2.1) s. 13(7)(e) applicable to depreciable property distribution
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) trust cannot have a NAL relationship with itself
2017-01-25 19 December 2016 External T.I. 2016-0643191E5 F - Deferred Salary Leave Plan (DSLP) Income Tax Act - Section 5 - Subsection 5(1) salary advance arrangement results in recognition when advances made rather than when earned
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) deduction where “repayment” of advances made during employee leave
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) comprehensive discussion, including: seasonal workers cannot participate; and DSLP can be married with a salary advance arrangement
22 December 2016 External T.I. 2015-0608201E5 F - Capital distribution from trust & NR4 Income Tax Regulations - Regulation 202 - Regulation 202(1) - Regulation 202(1)(c) all capital distributions made by Canadian-resident trusts to a non-resident beneficiaries must be reported on NR4s
Income Tax Act - Section 212 - Subsection 212(11) capital distributions other than of capital dividends not subject to Part XIII tax
2017-01-18 12 December 2016 External T.I. 2016-0668341E5 F - Stock dividend Income Tax Act - Section 55 - Subsection 55(2.3) - Paragraph 55(2.3)(b) safe income strip using a preferred share stock dividend
Income Tax Act - Section 52 - Subsection 52(3) - Paragraph 52(3)(a) - Subparagraph 52(3)(a)(ii) stock dividend deemed under s. 55(2.3)(b) to come out of safe income gave rise to full basis
23 November 2016 Internal T.I. 2014-0558411I7 F - Application du paragraphe 110.7(4) Income Tax Act - 101-110 - Section 110.7 - Subsection 110.7(4) deduction for board at remote work site not applicable if not close to 40,000+ population centre
6 December 2016 External T.I. 2015-0589041E5 F - Frais médicaux payés d’avance - prepaid medical expenses Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) prepaid expenses not recognized before incurred
Income Tax Act - Section 118.2 - Subsection 118.2(1) example of the election to claim medical expenses (that are not a prepayment for a future year’s services) on a lagged basis
6 December 2016 External T.I. 2016-0666841E5 F - Sale of property for POD less than FMV Income Tax Act - Section 15 - Subsection 15(1.4) - Paragraph 15(1.4)(c) application to Holdco shareholder of Opco where Opco conferrred a benefit on child of Holdco's shareholder
Income Tax Act - Section 246 - Subsection 246(1) s. 246(1) applicable to indirect shareholder benefit if direct shareholder influenced the benefit conferral
Income Tax Act - Section 56 - Subsection 56(2) potential application to immediate shareholder re benefit on indirect shareholder
2016-12-28 15 November 2016 Internal T.I. 2015-0577201I7 F - Employés du transport Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) per kilometer “accommodation” allowances paid to long-haul drivers not in excess of their vouchered restaurant expenses were likely unreasonable
6 June 2016 Internal T.I. 2015-0590411I7 F - Revenu d’emploi ou allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance “salary” paid after employment duties had ceased was retiring allowance
Income Tax Act - Section 5 - Subsection 5(1) "salary" paid after notice period was retiring allowance
2016-12-21 22 September 2016 External T.I. 2015-0594721E5 F - Inventory of animal meat Income Tax Act - Section 28 - Subsection 28(1) - Paragraph 28(1)(b) processing meat can form part of a farming business
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) meat processing operation included in farming business if incidental
9 November 2016 External T.I. 2014-0537121E5 F - Overseas employment tax credit Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) - Subparagraph 122.3(1)(b)(i) - Clause 122.3(1)(b)(i)(B) marine dredging to maintain or widen channel is construction
2 August 2016 External T.I. 2016-0659041E5 F - Déduction habitants Îles de la Madeleine Income Tax Act - 101-110 - Section 110.7 - Subsection 110.7(1) residents of Magdalen Islands in intermediate zone
2016-12-14 6 February 2015 Internal T.I. 2015-0566681I7 F - Redevances perçues d'avance Income Tax Act - Section 9 - Timing lump sum irrevocable prepayment of contingent future royalties fully included
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) irrevocable royalty prepayment under s. 12(1)(a) or 9
2016-12-07 18 October 2016 External T.I. 2015-0608051E5 F - Emigration of a trust Income Tax Act - Section 220 - Subsection 220(4.5) emigrating trust can elect to defer payment of the exit tax
Income Tax Act - Section 2 - Subsection 2(1) Fundy Settlement test may differ from residence of trustees
2016-11-30 7 October 2016 APFF Roundtable Q. 1A, 2016-0652951C6 F - Penalty late filed election-subsection 85(8) Income Tax Act - Section 85 - Subsection 85(8) penalty calculated on a global basis
7 October 2016 APFF Roundtable Q. 1B, 2016-0652761C6 F - T4A filing Income Tax Regulations - Regulation 200 - Subsection 200(1) no expanded relief from the broad T4A reporting requirements
Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(g) limited exceptions to T4A reporting
7 October 2016 APFF Roundtable Q. 1C, 2016-0652771C6 F - T106 and multiple year ends Income Tax Act - Section 231.1 - Subsection 233.1(2) acquisition of control generally will not generate additional T106 filings
7 October 2016 APFF Roundtable Q. 2, 2016-0652841C6 F - Changement partiel d’usage - immeuble locatif et résidentiel Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) switch between which triplex units used for personal/family rental or 3rd-party rental did not trigger change of use
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) on sale of triplex, individual can claim exemption only for years in which particular units were used personally or by children
Income Tax Act - Section 54 - Principal Residence triplex contained separate housing units
7 October 2016 APFF Roundtable Q. 3, 2016-0652851C6 F - Annulation d'une promesse d'achat sur une maison Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) damages for breach of covenant to purchase principal residence not covered
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) no capital loss for damages paid for breach of purchase obligation

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