Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2006-01-27 4 January 2006 Internal T.I. 2005-0115801I7 F - Convention de retraite 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 - 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 - 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
2005-12-02 4 November 2005 External T.I. 2004-0108271E5 F - Frais juridiques-105(2) Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees costs incurred to defend the right of use of the property were capital expenditures
17 November 2005 External T.I. 2005-0118101E5 F - Disposition réputée Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) deemed disposition is not to an arm’s length person, so that no business investment loss can result
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) - Subparagraph 39(1)(c)(ii) no BIL can arise from a deemed disposition and reacquisition
17 November 2005 External T.I. 2005-0118181E5 F - Signification "was applicable" vs "s'est appliqué" Income Tax Act - Section 107 - Subsection 107(4.1) - Paragraph 107(4.1)(b) s. 75(2) “was applicable” even where there was no income to attribute
4 November 2005 External T.I. 2005-0131741E5 F - Don par testament d'un bien culturel Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(i.1) s. 39(1)(a)(i.1) extended to gift by spousal trust
2005-11-18 15 November 2005 External T.I. 2005-0154801E5 F - Service Contract Payments - Filing of T1204 Income Tax Regulations - Regulation 237 - Subsection 237(2) T4A required where no T1204 filing required
2005-11-11 2 November 2005 External T.I. 2004-0093601E5 F - Fiducie au profit d'un mineur Income Tax Act - Section 104 - Subsection 104(18) - Paragraph 104(18)(c) can be discretion regarding distribution of capital other than accumulated income
Income Tax Act - Section 104 - Subsection 104(18) - Paragraph 104(18)(d) there can be discretion to delay payment, but not as to the share
1 November 2005 External T.I. 2004-0100001E5 F - Revenu d'une fiducie réputé payable Income Tax Act - Section 104 - Subsection 104(18) - Paragraph 104(18)(c) trust can become discretionary once all beneficiaries have attained 21
Income Tax Act - Section 104 - Subsection 104(24) position in ITTN No. 11 re payment of summer camp fees etc. also applies to non-discretionary trusts
27 October 2005 External T.I. 2004-0103431E5 F - Crédit d'impôt étranger-Gain en capital Income Tax Act - Section 126 - Subsection 126(1) claiming of principal residence exemption or capital loss carryforwards would generally preclude FTC for related US capital gains tax
2005-11-04 20 September 2005 External T.I. 2005-0140601E5 F - Ristournes - Coop de travailleurs actionnaire Income Tax Act - Section 135 - Subsection 135(1) s. 135(1) can apply to payments to worker members of a shareholder worker co-operative
28 October 2005 External T.I. 2005-0145891E5 F - Redemption of Shares - Balance of Purchase Price Income Tax Act - Section 84 - Subsection 84(3) amount of deemed dividend arose on redemption date based on amount of covenanted future redemption payments
2005-10-28 17 October 2005 External T.I. 2005-0139031E5 F - Activités exercées en dehors de la réserve Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.6) timber royalties derived from timber cutting off the reserve had non-reserve situs
Income Tax Act - Section 149 - Subsection 149(1.2) timber royalties derived from agreement with provincial government but paid by 3rd party operator did not qualify
2005-10-21 29 August 2005 External T.I. 2005-0125811E5 F - Actions prescrites: 6204(1)b) du Règlement Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(b) likelihood that employees’ stock option shares would be immediately repurchased meant they were not prescribed shares
Income Tax Act - Section 248 - Subsection 248(28) s. 248(28) does not preclude the application of s. 84(3) on the exercise of employee stock options and the immediate redemption of the acquired shares
18 October 2005 Internal T.I. 2005-0133411I7 F - Penalty for repeated failures to report income Income Tax Act - Section 163 - Subsection 163(1) simultaneous filing of returns for three successive years, each with unreported income, did not engage s. 163(1) (if no unreported income in prior years)
8 September 2005 Internal T.I. 2005-0133721I7 F - Crédit d'impôt - fonds de travailleurs Income Tax Act - Section 211.8 - Subsection 211.8(1) no s. 211.8(1) tax where shares of provincially regulated LSVCC are redeemed and where there is no acquisition of replacement shares

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