Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
30 August 2005 External T.I. 2005-0134081E5 F - Transfert d'un REER entre conjoints de fait Income Tax Act - Section 146 - Subsection 146(16) - Paragraph 146(16)(b) application to RRSP transfer between two separated common-law partners pursuant to written separation agreement
17 August 2005 External T.I. 2005-0135911E5 F - REEE- Établissement d'enseignement à l'étranger Income Tax Act - Section 146.1 - Subsection 146.1(1) - Post-Secondary Educational Institution a foreign educational institution that is listed in the American Council on Education's Accredited Institutions of Postsecondary Education will be recognized as a "post-secondary educational institution"
6 October 2005 External T.I. 2005-0146061E5 F - Coop de travailleurs actionnaire - montants versés Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) interest on a preferred share was a dividend
Income Tax Act - Section 136 - Subsection 136(2) workers shareholder cooperative qualified
Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage patronage dividend based on volume of work performed
11 October 2005 External T.I. 2005-0148281E5 F - Déductibilité de dépenses Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees accounting fees in preparing consolidated financial statements generally deductible
Income Tax Act - Section 248 - Subsection 248(24) s. 248(24) does not affect deductibility of fees for preparing consolidated financials
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense periodic (every 3 years) required actuarial valuations were currently deductible
13 September 2005 External T.I. 2005-0148831E5 F - REÉR - retenues à la source Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(j) no discretion (otherwise than under s. 153(1.1)) to relieve from withholding for an in-kind distribution
4 October 2005 External T.I. 2005-0149671E5 F - Congé à traitement différé Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) returning to pre-retirement leave is not returning to “regular” employment
2005-10-07 30 September 2005 External T.I. 2004-0093661E5 F - Revenu d'une fiducie et droit acquis par un mineur Income Tax Act - Section 104 - Subsection 104(6) a specific clause allocating taxable portion of capital gains to income beneficiary and non-taxable portion to capital beneficiary can be recognized
Income Tax Act - Section 104 - Subsection 104(24) written trustee resolution may be necessary to establish that an amount of income has become payable
26 August 2005 Internal T.I. 2005-0131171I7 F - Alinéa 18(1) e) de la LIR Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense no expense incurred for maintenance obligation until contractual obligation to someone
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) no specific contractual obligation regarding maintenance obligation
2005-09-16 12 September 2005 External T.I. 2005-0134631E5 F - Superficial Loss - Realization of Latent Loss Income Tax Act - Section 54 - Superficial Loss loss could be realized by 4 unrelated individuals transferring their equal shareholdings of Opco to Newco
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) 4 unrelated individuals transferring their equal shareholdings of Opco to Newco could be a NAL transaction
2005-09-09 31 August 2005 External T.I. 2005-0114421E5 F - Frais de garde d'enfants Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense fees for breach of contract can qualify but not educational fees
26 August 2005 Internal T.I. 2005-0121871I7 F - Assurance-vie commissions reçues par une société Income Tax Act - Section 9 - Nature of Income exemption for life insurance commissions on broker’s own life inapplicable where commission is assigned to his corporation carrying on the business
31 August 2005 Internal T.I. 2005-0134831I7 F - Capital Gains Exemption Strip Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(a) s. 84.1 did not apply to transferring crystallized preferred shares’ ACB to common shares under s. 40(3.6)(b), with those shares exchanged for high-PUC prefs of new Holdcos for cash redemption
Income Tax Act - Section 245 - Subsection 245(4) the use of s. 40(3.6)(b) for surplus-stripping purposes would be referred to the GAAR Committee
Income Tax Act - Section 40 - Subsection 40(3.6) individuals holding high-ACB/low-PUC prefs and low ACB/PUC common shares preserved that ACB under s. 40(3.6)(b) for surplus-stripping purposes on their prefs’ redemption
2005-09-02 26 July 2005 External T.I. 2004-0097031E5 F - Règles sur les entités de placement étrangères Income Tax Act - Section 95 - Subsection 95(8) description of Barbados cell company in context of previous tracking interest rules
2005-08-19 2 August 2005 External T.I. 2005-0112871E5 F - Cotisation professionnelle Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) fees paid by municipal mangers to a professionals corporation formed under private member’s bill were non-deductible
3 August 2005 External T.I. 2005-0118891E5 F - REÉÉ - Décès du souscripteur Income Tax Act - Section 146.1 - Subsection 146.1(1) - Subscriber - Paragraph (c) testamentary trust became a successor subscriber
2 August 2005 Internal T.I. 2005-0135701I7 F - Exonération - Indien inscrit Other Legislation/Constitution - Federal - Indian Act - Section 87 being on standby does not constitute the performance of duties of employment
2005-08-05 7 July 2005 External T.I. 2005-0122191E5 F - Erroneous Elections in Statute-barred Years Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(c.1) no need to amend the s. 85(1) election where the agreed amount was less than the s. 85(1)(c.1) floor
Income Tax Act - Section 85 - Subsection 85(7) no need to amend the s. 85(1) election where automatic s. 85(1)(c.1) adjustment
Income Tax Act - Section 110.6 - Subsection 110.6(19) no need to amend the s. 85(1) election where the agreed amount was less than the s. 85(1)(c.1) floor
13 July 2005 External T.I. 2005-0131351E5 F - Séparation des conjoints de fait Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner common-law partnership of couple with a child resumed the moment they resumed living together
Income Tax Act - Section 74.5 - Subsection 74.5(3) - Paragraph 74.5(3)(a) attribution resumed when cohabitation resumed
Income Tax Act - Section 74.5 - Subsection 74.5(3) - Paragraph 74.5(3)(b) capital gain is attributed to transferor common-law partner if the property is sold after they resumed their relationship
2005-07-29 24 June 2005 External T.I. 2004-0109201E5 F - Professions libérales - Travaux en cours Income Tax Act - Section 34 a professional partnership carrying on a secondary non-professional activity may make the election
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) income from a professional practice includes income from a secondary non-professional activity if the practice is a single business
28 June 2005 Internal T.I. 2005-0115721I7 F - Entreprise de prestation de services personnels Income Tax Act - Section 125 - Subsection 125(7) - Personal Services Business high degree of control and integration with the business of a corporation established that the respective services providers had PSBs
4 July 2005 External T.I. 2005-0117321E5 F - Sens de l'expression "frais de scolarité" Income Tax Act - Section 118.5 - Subsection 118.5(3) various components of registration fees qualified including additional fees to out-of-province students
Income Tax Act - Section 118.5 - Subsection 118.5(3) - Paragraph 118.5(3)(d) detailed listing of charges subject to s. 118.5(3)(d)

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