Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-05-26 18 May 2006 Internal T.I. 2006-0182321I7 F - Déduction des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) refinancing dividend-payment notes with interest-bearing shareholder loans did not cure the interest-deductibility problem
4 May 2006 Roundtable, 2005-0161541C6 F - Placements admissibles - dépôts Income Tax Act - Section 204 - Qualified Investment - Paragraph (b) GIC or term deposit is a similar obligation
Income Tax Act - Section 204 - Qualified Investment - Paragraph (f) GIC could qualify under para. (b) or (f)
Income Tax Act - Section 204 - Qualified Investment - Paragraph (a) not a qualifying deposit if payable outside Canada or in foreign currency
Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(c.1) GIC of bank is a similar obligation
2006-05-19 4 May 2006 Internal T.I. 2006-0183801I7 F - 152(3.1) Normal Reassessment Period Determination Income Tax Act - Section 152 - Subsection 152(3.1) normal reassessment period excludes the day of initial assessment
Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(4) Brunette followed re computing normal reassessment period
2006-05-12 7 April 2006 External T.I. 2005-0132981E5 F - Avantages imposables à des employés Income Tax Act - Section 20 - Subsection 20(10) meaning of convention
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) measuring 3 hours of overtime to justify meal allowance
7 April 2006 External T.I. 2005-0152801E5 F - Remboursement de frais de scolarité Income Tax Act - Section 15 - Subsection 15(1) paying costs for its sole shareholder to get an MBA was not a taxable benefit
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training bearing costs for its sole shareholder to get an MBA was a capital expenditure
6 April 2006 Internal T.I. 2005-0157361I7 F - Pension alimentaire Income Tax Act - Section 60 - Paragraph 60(b) normal rules not changed where non-resident recipient
24 April 2006 External T.I. 2006-0166041E5 F - Transfert de biens entre époux séparés Income Tax Act - Section 40 - Subsection 40(4) s. 40(4) feeds principal residence claim of spouse after she acquires the co-ownership interest of her separated husband for $1
Income Tax Act - Section 74.5 - Subsection 74.5(3) separation judgment unnecessary for s. 74.5(3) election to avoid attribution
2006-04-28 6 April 2006 External T.I. 2005-0157461E5 F - Frais de déplacement - actionnaire Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) expenses of corporate investor to attend shareholders’ meeting were non-deductible
26 April 2006 External T.I. 2005-0163341E5 F - Frais de séjour, allocations de repas Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) duties could be temporary where a single non-renewable contract for 3 years
2006-04-21 22 March 2006 External T.I. 2006-0168491E5 F - Vente de compte-clients et d'achalandage Income Tax Act - Section 22 - Subsection 22(1) capital loss treatment if a s. 22 election is not made
11 April 2006 Internal T.I. 2006-0169571I7 F - Provision pour recours collectif Income Tax Regulations - Regulation 1408 - Subsection 1408(1) - Claims Liability - Paragraph (a) reserve could be set up for class action suit
2006-04-07 28 March 2006 Internal T.I. 2005-0109761I7 F - Commandite reçue par une athlète Income Tax Act - Section 3 - Paragraph 3(a) sponsorship received by amateur student athlete was not from a source of income
22 March 2006 External T.I. 2005-0131231E5 F - Perte et avantage au titre du logement Income Tax Act - Section 6 - Subsection 6(21) “at any time” is intended to accord flexibility as to when the housing loss is computed
16 March 2006 External T.I. 2005-0133301E5 F - Arrérages pension alimentaire reçus par succession Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(b) support arrears received by estate were tax-free
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees to settle an estate are non-deductible
28 March 2006 Internal T.I. 2005-0151711I7 F - Récompense visée par règlement Income Tax Regulations - Regulation 7700 prize to award excellence in teaching materials was a prescribed prize
29 March 2006 Internal T.I. 2006-0171171I7 F - Convention de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement plan was not an RCA because benefits were unreasonable
Income Tax Act - Section 67 application of a version of the Gabco test
2006-03-31 6 March 2006 External T.I. 2005-0155271E5 F - Disposition d'une participation au capital Income Tax Act - Section 107 - Subsection 107(2) - Paragraph 107(2)(a) computation of capital gain, where another taxpayer paid by another beneficiary to surrender his or her capital interest in the estate, based on para. (b) of “cost amount”
2006-03-24 22 March 2006 External T.I. 2005-0133061E5 F - Limitation Period Collection of Debts Income Tax Act - Section 222 - Subsection 222(4) - Paragraph 222(4)(a) - Subparagraph 222(4)(a)(ii) 10-year limitation period did not start running for a pre-2004 debt until March 4, 2004
21 March 2006 External T.I. 2005-0158451E5 F - Québec Mining Duties Act - Credit for Losses Income Tax Act - Section 66.1 - Subsection 66.1(6) - Cumulative Canadian exploration expense - Element J credit under the Quebec Mining Duties Act based on exploration and development losses of operator was not “assistance" under J
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x.2) credit under the Quebec Mining Duties Act based on exploration and development losses of operator was not includible under s. 12(1)(x.2)
Income Tax Act - Section 66 - Subsection 66(12.6) - Paragraph 66(12.6)(a) credit under the Quebec Mining Duties Act based on exploration and development losses of operator was too remote from the exploration to reduce the renounced CEE
2006-03-17 15 March 2006 External T.I. 2005-0124911E5 F - Prestation compensatoire française Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount life annuity, but not lump sum, received from divorced ex-spouse in France as “compensatory allowances” under the French Civil Code was taxable as support
Treaties - Income Tax Conventions - Article 18 life annuity, was to be treated for Treaty purposes as alimony or similar payments since it was treated by CRA as a support amount under ITA
Treaties - Income Tax Conventions - Article 3 treatment of a life annuity under ITA, as a support amount meant that it was to be treated for Treaty purposes as alimony or similar payments
Treaties - Income Tax Conventions - Article 21 non-taxability of lump sum compensation allowance under French law not altered by Art. 21
3 March 2006 Internal T.I. 2005-0151871I7 F - Déduction des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) notes issued to replace notes issued to pay dividends did not qualify as refinancing borrowed money under s. 20(3) or as being for the acquisition of property per s. 20(1)(c)(ii)
13 February 2006 External T.I. 2005-0153561E5 F - Aggregate Investment Income Income Tax Act - Section 129 - Subsection 129(4) - Aggregate Investment Income - Paragraph (b) - Subparagraph (b)(iv) rental income allocated by a unit trust could be active business income
16 March 2006 External T.I. 2006-0167361E5 F - Options et droits - Alinéa 251(5)b) Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) bankruptcy exception does not include mere insolvency/no application where corporation is required under USA to redeem shares or under a letter of intent
14 March 2006 External T.I. 2006-0170971E5 F - CRCE/Test Wind Turbine-FEREEC/Éolienne d'essai Income Tax Regulations - Regulation 1219 - Subsection 1219(3) - Paragraph 1219(3)(f) requirement for 1500 m spacing of wind turbines not satisfied
2006-03-03 15 February 2006 External T.I. 2005-0126831E5 F - 120.4(1) - définition : montant exclu Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (a) para. (a) exclusion does not apply to substituted property

Pages