Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-06-02 29 May 2006 External T.I. 2005-0131701E5 F - Durée de l'exercice d'une société Income Tax Act - Section 249.1 - Subsection 249.1(3) s. 249(3) did not preclude a 53 week fiscal period covering 3 calendar years
3 May 2006 Internal T.I. 2005-0133341I7 F - Cours normal des activités de l'entreprise Income Tax Act - Section 112 - Subsection 112(2.1) s. 112(1) applies to dividends received through partnership/whether venture capital firm received such dividends in ordinary course turned on similarity of this with its other investments
16 May 2006 External T.I. 2005-0155251E5 F - Dépenses de vêtements - travailleur indépendant Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) CCA cannot be claimed for suits of business person
18 May 2006 Internal T.I. 2005-0162821I7 F - Imposition - article 1619 du Code civil Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) additional indemnity awarded under CCQ Art. 1619, computed by applying an interest rate to damages award, was interest
29 May 2006 External T.I. 2006-0167031E5 F - Location automobile Income Tax Act - Section 6 - Subsection 6(2) - Element E deposit that is unconditionally refundable at conclusion of the car lease does not affect the standby charge
9 May 2006 Internal T.I. 2006-0175551I7 F - Traitement fiscal d'un montant forfaitaire Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) lump sum received in settlement of entitlement to future disability benefits was not taxable under s. 6(1)(f), as was forgiveness of obligation to repay disability overpayments
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) lump sum received in settlement of entitlement to future disability benefits was non-taxable s. 39(1)(a)(iii) receipt
Income Tax Act - Section 6 - Subsection 6(15) forgiveness of rehabilitation loan was taxable
9 May 2006 Internal T.I. 2006-0176371I7 F - Bourses d'études ou d'entretien Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) payments (made by application against student loans) were “given to students who need financial assistance to continue their education” and, thus, were bursaries
General Concepts - Payment & Receipt bursaries “received” by students even though required to be applied directly to their loans
12 May 2006 Internal T.I. 2006-0184781I7 F - Montant forfaitaire reçu en vertu de 56(1)v) Income Tax Act - Section 110.2 - Subsection 110.2(1) - Qualifying Amount lump sum workers’ compensation payments were not qualifying amounts
Income Tax Act - Section 122.5 - Subsection 122.5(1) - Adjusted Income deductibility of s. 56(1)(v) inclusions under s. 110(1)(f) did not detract from inclusion in adjusted income
Income Tax Act - Section 122.6 - Adjusted Income lump sum workers' compensation payments were deductible under s. 110(1)(f), but not deductible from adjusted income
31 May 2006 External T.I. 2006-0185481E5 F - Remboursement de dépenses et allocations Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) premiums to cover additional personal costs of travel do not come within the s. 6(1)(b)(vii) exception
2006-05-26 9 May 2006 External T.I. 2005-0161941E5 F - REER: Legs à une fiducie exclusive au conjoint Income Tax Act - Section 146 - Subsection 146(8.1) election could be made regarding encroachment of capital to beneficiary of spousal trust
10 May 2006 External T.I. 2005-0162591E5 F - Renonciation à une succession: REER Income Tax Act - Section 146 - Subsection 146(8.1) renunciation by two children for the benefit of the other heir did not give rise to a transfer as a consequence of death
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(b) renunciation by two children for the benefit of the other heir would not qualify
11 May 2006 Internal T.I. 2006-0178781I7 F - Résidence des membres du clergé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) pastoral worker not entitled to deduction
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

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