Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-12-29 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
2006-12-08 15 November 2006 External T.I. 2006-0190041E5 F - Biogas / Codigestion Process / Produced for Sale Income Tax Regulations - Schedules - Schedule II - Class 43.1 supplementation of manure with organic waste in input to anaerobic digester would disqualify it as Class 43.1 property, as would the sale of more than 50% of the biogas produced
30 November 2006 External T.I. 2006-0191541E5 F - Primes d'assurance-vie et d'assurance-invalidité Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) premiums on life insurance policy required by lender deductible even though loan government-guaranteed, but premiums on lender-required disability policy not deductible
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures premiums on disability policy required by lender are capital expenditures
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.1) guarantee fee does not include premiums on lender-required insurance policy
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (j) tax free receipt of life insurance proceeds by lender on policy required by it of the borrower
Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (h) tax free receipt of disability insurance proceeds by lender on policy required by it of the borrower
6 October 2006 Roundtable, 2006-0197151C6 F - Acquisition selon convention entre actionnaires Income Tax Act - Section 70 - Subsection 70(9.2) children’s exercise of a right in a shareholders’ agreement to acquire farmco shares that is triggered on their father’s death would not be a consequence of his death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) children exercising right in shareholders’ agreement to acquire shares on father's death would not be a consequence of his death, cf. if pursuant to his will
2006-12-01 11 December 1995 Internal T.I. 95056370 - Traitement fiscal - versement particulier - indien Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) benefits paid to Cree hunters regarding their hunting and trapping activities were s. 56(1)(u) support payments that were not exempted under s. 87
Other Legislation/Constitution - Federal - Indian Act - Section 87 benefits paid to Crees to support their traditional hunter lifestyle were social assistance
2006-11-17 15 November 2006 External T.I. 2004-0083461E5 F - Feb. 2004 Proposals - Paragraph 85(1)(d.11) Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(d.11) application date of s. 85(1)(d.11)
7 October 2005 Roundtable, 2005-0140891C6 F - Disposition d'une immobilisation Income Tax Act - Section 14 - Subsection 14(1) - Paragraph 14(1)(b) illustration of application of formula where the vendor of goodwill previously acquired it in a NAL transfer at a gain to the transferor
7 October 2005 Roundtable, 2005-0141021C6 F - Actions admissibles de petite entreprise Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation if Opco and Realtyco are held equally by two unrelated individuals, Realtyco is not an SBC if it holds more than 50% of its assets as debt of Opco
7 October 2005 Roundtable, 2005-0141151C6 F - Lotissement de biens Income Tax Act - Section 248 - Subsection 248(21) s. 248(21) can apply to partitioning a building into separately-owned units
12 September 2006 Internal T.I. 2005-0147801I7 F - Déduction pour frais judiciaires d'un employé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) legal fees incurred in defending against allegations of harassment were non-deductible
10 November 2006 External T.I. 2006-0174681E5 F - Salaire versé par un employé à un adjoint Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) position in IT-352R2, para. 1 consistent with Longtin
8 November 2006 External T.I. 2006-0176171E5 F - Revente d'un bien amortissable - alinéa 13(7)e) Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) no deemed CCA class for s. 13(7)(e) denial
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) - Subparagraph 39(1)(b)(i) capital loss denied on sale of building – proceeds reflected in UCC reduction
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - F application of disposition expenses under Element F
7 November 2006 External T.I. 2006-0201261E5 F - REER: Legs à une fiducie exclusive au conjoint Income Tax Act - Section 146 - Subsection 146(8.1) surviving spouse would be "beneficially interested" in the estate of a deceased RRSP annuitant by virtue of being a beneficiary of a testamentary trust
14 November 2006 External T.I. 2006-0201371E5 F - FERR: Legs à une fiducie exclusive au conjoint Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit - Paragraph (a) amount funded with capital encroachment out of spousal trust equaling RRIF of testator would be eligible for the election
24 October 2006 Internal T.I. 2006-0203901I7 F - Avantage automobile Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) bus stop near the employee’s home does not qualify as a pick-up point regarding the exception for employer-assisted commuting
16 November 2006 External T.I. 2006-0204901E5 F - Meaning of Full Voting Rights Income Tax Act - Section 186 - Subsection 186(2) requirement for special meeting of preferred shareholders to approve an adverse amendment to articles does not detract from full voting rights of common shareholders
8 November 2006 External T.I. 2006-0208601E5 F - Crédit d'impôt pour transport en commun Income Tax Act - Section 118.02 - Subsection 118.02(1) - Public Commuter Transit Services definition extends to ferrying of motorists
2006-11-10 27 October 2006 External T.I. 2005-0157321E5 F - Winding-up of a wholly-owned corporation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(ii) character of property usually regarded as retained in the hands of the parent
Income Tax Act - Section 9 - Capital Gain vs. Profit - Goodwill character of property usually regarded as retained in the hands of the parent
26 October 2006 External T.I. 2006-0170341E5 F - Subsections 87(2.1) and 87(2.11) Income Tax Act - Section 87 - Subsection 87(2.1) s. 87(2.11) does not affect the aging of previously-incurred losses and is relevant to carry-backs by the Amalco
Income Tax Act - Section 87 - Subsection 87(2.11) purposes of s. 87(2.11) is to allow parent to use losses realized by the new corporation (so as to carry back)
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

Pages