Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-11-03 19 October 2006 Internal T.I. 2006-0173261I7 F - Avantage conféré par une fiducie Income Tax Act - 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 - 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
14 September 2006 External T.I. 2006-0167861E5 F - Frais de représentation Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) taxpayer is not considered to receive compensation for restaurant bills where they are included in its estimates but not explicitly in its invoices
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(c) "specifically notified in writing" requirement is not satisfied where restaurant bills are included in fee estimates to clients but not explicitly in the ultimate invoices
2 October 2006 Internal T.I. 2006-0168081I7 F - Actions d'une société en faillite Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(b) - Subparagraph 50(1)(b)(i) s. 50(1)(b)(i) satisfied if notice of intention under BIA does not lead to timely filing of proposal – but election must be filed for that rather than subsequent year
Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(b) - Subparagraph 50(1)(b)(iii) if s. 50(1)(b)(iii) conditions are satisfied in a year, the election can be made in a subsequent year – but not if the corporation was a bankrupt in the first year
25 September 2006 External T.I. 2006-0169371E5 F - Résidence principale -Détermination du PBR Income Tax Act - Section 107 - Subsection 107(1) - Paragraph 107(1)(a) relinquishing to their father by the children of the bare ownership in a residence subject to a usufruct of their father resulted in a deemed trust interest disposition with a gain equal to the residence’s appreciation
3 October 2006 External T.I. 2006-0203911E5 F - Allocations pour l'usage d'un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) travel from home to attend service calls not in the course of employment
3 October 2006 Internal T.I. 2006-0208161I7 F - Projet pilote - Alternative jeunesse Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) Quebec youth alternative payments are social assistance
2006-09-29 1 August 2006 External T.I. 2005-0125431E5 F - Donation rémunératoire et vente à rabais Income Tax Act - Section 248 - Subsection 248(31) must be a donative intent for there to be a remunerative gift
20 September 2006 External T.I. 2006-0166541E5 F - Revenu d'emploi hors réserve gagné par un Indien Other Legislation/Constitution - Federal - Indian Act - Section 87 employer is a connecting factor if all its members are on the reserve
19 September 2006 External T.I. 2006-0170861E5 F - Contrat de rente différé et perte courue Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis ACB does not reflect the income for the anniversary year if disposition of interest occurs immediately after the anniversary day
Income Tax Regulations - Regulation 307 - Subsection 307(1) - Paragraph 307(1)(b) overview of Reg. 307(1)(b)
2006-09-22 16 August 2006 External T.I. 2006-0176801E5 F - Subparagraph 256(1.2)(f)(ii) Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) - Subparagraph 256(1.2)(f)(ii) s. 256(1.2)(f)(ii) extends to a person designated to be a beneficiary upon the death of the individual’s father
13 September 2006 External T.I. 2006-0184711E5 F - Allocation de retraite Income Tax Act - Section 60 - Paragraph 60(j.1) vested contributions include those transferred from previous employer
13 September 2006 External T.I. 2006-0185081E5 F - Crédit d'impôt pour études: sens du mot "semaine" Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program week means 7 consecutive days
13 September 2006 External T.I. 2006-0185161E5 F - Crédit d'impôt pour frais de scolarité Income Tax Act - Section 118.5 - Subsection 118.5(3) - Paragraph 118.5(3)(d) fee for credit recognition of work placement might qualify
13 September 2006 External T.I. 2006-0198391E5 F - Ventes à découvert - choix 39(4) Income Tax Act - Section 39 - Subsection 39(4) election applies to short sales of Canadian securities
2006-09-15 28 August 2006 Internal T.I. 2006-0171141I7 F - Régime d'assurance collective contre la maladie Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) a qualifying plan can be implemented by individual disability insurance policies taken out for all management employees if there is a similar premium sharing arrangement for all
2006-09-08 7 September 2006 External T.I. 2006-0172841E5 F - 15(2) - employé non-actionnaire au moment du prêt Income Tax Act - Section 15 - Subsection 15(2) s. 15(2) can apply if the loan recipient becomes a shareholder later in the year
7 September 2006 External T.I. 2006-0173701E5 F - Exercice financier d'une société Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(a) 53 week period includes initial period of inactivity
Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) - Subparagraph 150(1)(a)(i) initial period of years of inactivity does not suspend return-filing obligation
10 August 2006 Internal T.I. 2006-0191571I7 F - Frais de déplacement - biens locatifs Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) two adjacent properties nonetheless are separate so that related property-management travel expenses are deductible
11 August 2006 External T.I. 2006-0195781E5 F - Bourses de perfectionnement Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) National Research Council fellowships likely are employment income
Income Tax Act - Section 5 - Subsection 5(1) changed tests for distinguishing employment following Sagaz and Wolf
1 November 1994 Internal T.I. 94234170 F - CBR Assurance-vie Income Tax Act - Section 148 - Subsection 148(9) - Disposition amendment to policy to reduce premiums and insured amounts was not intended to create a new policy, and was not a disposition
Income Tax Act - Section 248 - Subsection 248(1) - Disposition amending policy to reduce premiums and insured amount was not a disposition
2006-08-18 20 June 2006 External T.I. 2005-0149651E5 F - CEE / FEC Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (f) expenditures to ensure safety of exploration personnel generally qualify if not specifically excluded
2006-08-11 18 July 2006 External T.I. 2005-0159781E5 F - Paragraph 55(3)(a) Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(i) ss. 55(3)(a)(i) to 55(3)(a)(v) not engaged where Holdco spins off Subco to Sisterco and then redeems the minority shareholding in Holdco of 3rd party

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