Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-04-21 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
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)

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