Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-03-03 15 February 2006 External T.I. 2005-0126831E5 F - 120.4(1) - définition : montant exclu Income Tax Act - Section 248 - Subsection 248(5) phrase “substituted property” must be used to engage s. 248(5)
1 February 2006 External T.I. 2005-0142411E5 F - Don entre vifs - bien agricole admissible Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) words of transfer not determinative as to whether there is a gift or sale for nominal consideration
17 February 2006 External T.I. 2005-0153931E5 F - Primes d'installation médecins Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) signing bonuses to medical practitioners to establish in remote areas are taxable
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) signing bonuses to medical practitioners to locate in remote areas are a taxable benefit
2006-02-17 7 February 2006 External T.I. 2005-0122381E5 F - Consequential assessment Income Tax Act - Section 152 - Subsection 152(4.3) taxpayer following a redetermination to allow a loss for Year 1 can carry that loss forward to a statute-barred year pursuant to s. 152(4.3)
2 February 2006 External T.I. 2005-0127351E5 F - Fiducie révocable -Prêt authentique Income Tax Act - Section 75 - Subsection 75(2) exception for bona fide loans/trustee may guarantee a loan
2 February 2006 External T.I. 2005-0152871E5 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(a) partial funding under Reg. 3400 international development assistance program precludes credit
2006-02-10 2 February 2006 External T.I. 2005-0111911E5 F - Participation indivise dans un immeuble-fiducie Income Tax Act - Section 70 - Subsection 70(5) grant under will of usufruct and bare ownership to surviving spouse and children, respectively, resulted in a deemed s. 70(5) disposition to a testamentary trust
Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) grant under will of usufruct in 2-unit property to surviving spouse constituted a disposition to a testamentary trust which could make the (c.1) designation for the home unit
2 February 2006 Internal T.I. 2005-0129131I7 F - Assessing 163(2) penalty Income Tax Act - Section 163 - Subsection 163(2) s. 163(2) can be imposed where false adjustments are requested, without the necessity to first process those adjustments
2 February 2006 External T.I. 2005-0152431E5 F - Utilization of non-capital losses Income Tax Act - Section 69 - Subsection 69(11) s. 69(11) would not apply where losses are applied against services income of Amalco
Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) - Subparagraph 256(7)(a)(i) s. 256(7)(a)(i) applicable where sister transfers Lossco to Profitco owned equally by her and three siblings
2006-02-03 31 January 2006 External T.I. 2005-0151041E5 F - Régimes de sécurité sociale étrangers Treaties - Income Tax Conventions - Article 29 plan recognized as a pension plan under Art. 29(5) of the Cda-France Convention cannot be an EBP
27 January 2006 External T.I. 2005-0164611E5 F - Société immobilière de pension - sens de location Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(A) providing meals, medical services and housekeeping in a seniors apartment would put the corp. offside
31 January 2006 External T.I. 2006-0167501E5 F - Retenues à la source Income Tax Regulations - Regulation 100 - Subsection 100(3) - Paragraph 100(3)(c) reasonable belief can be based on confirmation from annuitant
2006-01-27 4 January 2006 Internal T.I. 2005-0115801I7 F - Convention de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement arrangement was not an RCA because the benefits were not reasonable
Income Tax Act - Section 56 - Subsection 56(2) contributions to purported RCA that provided excessive benefits to employee/ultimate shareholders were included in the direct shareholders’ income under s. 56(2)
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(r) excessive benefits would have resulted in denial under ss. 18(1)(o.2) and 20(1)(r) had the arrangement qualified as an RCA
Income Tax Act - Section 67 Petro-Canada applied re determining reasonableness
Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement contributions to a purported RCA that contemplated excessive benefits also were not in relation to an SDA because the contributions instead were indirect shareholder appropriations
19 January 2006 External T.I. 2006-0165471E5 F - Fiducie exemptée d'impôt Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(z.1) exemption of trust for closure costs of Quebec disposal facility
2006-01-20 21 December 2005 External T.I. 2005-0150711E5 F - Wind turbines - Class 43.1 Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(v) lessor of lands can renounce rights of accession so that operator can own the wind turbines
2006-01-13 6 January 2006 External T.I. 2005-0159421E5 F - Dons visant un programme particulier Income Tax Act - Section 248 - Subsection 248(30) acceptable to direct that donation to school where donor’s grandson is student can direct that the funds be used to purchase texts
2006-01-06 16 December 2005 External T.I. 2005-0150411E5 F - Roll-over Provisions and Partnership Income Tax Act - Section 86 - Subsection 86(1) partnership is a taxpayer for s. 51(1), 85.1(1) or 86(1) exchange purposes
Income Tax Act - Section 248 - Subsection 248(1) - Taxpayer partnership with non-resident partners is a taxpayer for s. 51(1), 85.1(1) or 86(1) rollover purposes
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(a) partnership is taxpayer for income computation purposes even if it has non-resident partners
22 December 2005 External T.I. 2005-0151091E5 F - Allocation de retraite - retenue à la source Income Tax Regulations - Regulation 100 - Subsection 100(3) - Paragraph 100(3)(c) confirmation of RRSP deduction limit is not required from the employee for the portion of the retiring allowance that is eligible for deduction under paragraph 60(j.1)
22 December 2005 External T.I. 2005-0162001E5 F - Déductibilité police d'assurance-vie Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) no assignment as required for premium deductibility by the taxpayer where the bank starts out as the policy owner
2005-12-09 21 November 2005 External T.I. 2005-0121232E5 F - Bien agricole admissible Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property holding of property for a period by their aunt disqualified it as a QFP
8 November 2005 Internal T.I. 2004-0109351I7 F - Frais juridiques - pension alimentaire Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal expenses to obtain increased support, but not to reduce a support obligation, are currently deductible
26 October 2005 External T.I. 2005-0117551E5 F - État des loyers de biens immeubles Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense costs of disinfecting, de-odourizing and repairing a rental home were currently deductible
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) prohibition applied to travel and accommodation expenses incurred in dealing with a rental property left in substandard condition
8 November 2005 External T.I. 2005-0117791E5 F - Exonération des gains en capital Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (e) - Subparagraph (e)(ii) asset utilization test referred to in subpara. (e)(ii) takes into account the more stringent test in para. (d)
29 November 2005 Internal T.I. 2005-0130101I7 F - ITC - Logging Truck Income Tax Regulations - Regulation 4600 - Subsection 4600(2) - Paragraph 4600(2)(f) trucking by sub-contractor can qualify
9 November 2005 Internal T.I. 2005-0133261I7 F - Frais médicaux payés à l'avance Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) prepaid dental care does not qualify until the year in which the care is received
Income Tax Act - Section 118.2 - Subsection 118.2(1) - B - Paragraph (a) a receipt for prepaid medical care does not qualify
8 November 2005 External T.I. 2005-0148091E5 F - Résidence principale-deux unités de condominium Income Tax Act - Section 54 - Principal Residence two stacked condos connected by an interior staircase constituted two housing units
16 November 2005 Internal T.I. 2005-0153071I7 F - Interprétation de l'alinéa 147.4(1)c) Income Tax Act - Section 147.4 - Subsection 147.4(1) further single-premium contract must be acquired for subsequent employees rather than being added with additional premium to existing contract
9 November 2005 Internal T.I. 2005-0154301I7 F - Choix concernant les immobilisations admissibles Income Tax Regulations - Schedules - Schedule II - Class 14.1 operating agreement of care facility with province was goodwill because it could not be transferred without a transfer of the care business
Income Tax Act - Section 14 - Subsection 14(1.01) cost of property acquired can be nil

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