Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
6 October 2006 Roundtable, 2006-0197051C6 F - Abri fiscal: Don de valeurs mobilières Income Tax Act - Section 237.1 - Subsection 237.1(1) - Tax Shelter question of fact whether gift of securities described in s. 38(a.1)
6 October 2006 Roundtable, 2006-0197211C6 F - Transfert de police d'ass-vie entre sociétés Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) could apply to the individual shareholder of Aco and Bco where Aco transfers an insurance policy at an undervalue to Bco
Income Tax Act - Section 148 - Subsection 148(7) s. 148(7) applicable to policy transfer between sister corps

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