Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2005-04-01 17 March 2005 External T.I. 2005-0118601E5 F - Sale of Shares-Transfer of Family Business Income Tax Act - Section 245 - Subsection 245(4) GAAR could apply where previous capital gains crystallization transaction indirectly generated a capital loss on a pref redemption transaction
2005-03-25 22 March 2005 External T.I. 2005-0112081E5 F - Convention de retraite - lettre de crédit Income Tax Act - Section 207.7 - Subsection 207.7(2) where LC used to secure RCA benefits and refundable tax generated on funding of LC fees, refundable tax not recoverable based on paying the benefits
Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax use of letter of credit to secure RCA benefits
Income Tax Act - Section 207.5 - Subsection 207.5(2) election not available to custodian holding an LC
22 March 2005 Internal T.I. 2005-0115451I7 F - Extinction d'une remise de dette Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount no deduction where forgiven debt is subsequently restored pursuant to improved fortunes clause
Income Tax Act - Section 80.01 - Subsection 80.01(10) repayment deduction under s. 80.01(10)
General Concepts - Effective Date CRA assesses based on the state of affairs at year end
2005-03-18 1 February 2005 External T.I. 2004-0083921E5 F - Société mandataire, gain & CIÉ Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax US taxes paid by a corporation based on falsely representing that the related gain was its gain could generate a FTC to the Canadian shareholder for which it in fact was agent
4 February 2005 External T.I. 2004-0085361E5 F - Changement de résidence: émigration Income Tax Act - Section 122.6 - Eligible Individual - Paragraph (c) required repayment of CCB if received after departure from Canada
31 January 2005 External T.I. 2004-0091301E5 F - Déductions à la source-avantage autre qu'en argent Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) no source deductions required where a non-cash benefit is the sole remuneration
Income Tax Act - Section 153 - Subsection 153(1.1) no source deductions required where free accommodation was the intern's only benefit
4 February 2005 External T.I. 2004-0093611E5 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) - Clause 39(1)(a)(i.1)(B) s. 39(1)(a)(i.1) unavailable where capital gain realized under s. 104(4)
15 March 2005 Internal T.I. 2004-0108721I7 F - Don d'une licence Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gift of a non-exclusive software licence was a gift of property
Income Tax Act - Section 248 - Subsection 248(1) - Property excepting WIP, definition of property is no broader than term’s ordinary meaning
2005-03-11 3 March 2005 External T.I. 2004-0096371E5 F - Revenu tiré d'un emploi et 110(1)f)(iii) Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(iii) no special tests under s. 110(1)(f)(iii) for determining whether the individual is self-employed
2005-03-04 23 February 2005 External T.I. 2004-0093921E5 F - Déménagement d'un employé-Paiement de frais Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) payment of house-hunting fee for new hire was non-taxable
7 February 2005 External T.I. 2004-0101421E5 F - Subsection 111(5.1) Income Tax Act - Section 111 - Subsection 111(5.1) FMV of assets should be established on a push-down basis from the share purchase price, but can be allocated based on an appraisal
General Concepts - Fair Market Value - Other depreciable assets’ value inferred from the share purchase price
28 February 2005 Internal T.I. 2004-0103991I7 F - Remboursement de frais de scolarité Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) agreement of employer to pay tuition would have been taxable under s. 6(3) if a benefit
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) payment of tuition fees conditional on a return to extended employment was not a taxable benefit
28 February 2005 External T.I. 2004-0104121E5 F - Détermination du statut de résidence Income Tax Regulations - Regulation 2607 individual working in Ontario but visiting Quebec family home twice monthly likely was resident in Quebec
7 February 2005 External T.I. 2005-0111431E5 F - Death of a Taxpayer - Deduction of CCDE Income Tax Act - Section 66.2 - Subsection 66.2(2) CCDE balance cannot be deducted in terminal return or by estate
Income Tax Act - Section 70 - Subsection 70(5.2) no s. 70(5.2) deduction where CCDE balance arose “through” a partnership
2005-02-25 17 February 2005 External T.I. 2004-0091811E5 F - Exemption pour résidence principale Income Tax Act - Section 54 - Principal Residence separate municipal addresses not determinative that basement occupied by son and ground floor occupied by mother were two housing units
Income Tax Act - Section 54 - Principal Residence - Paragraph (a) where residence held by son and mother in equal co-ownership is 2 units each occupied separately, each could technically access the exemption for only a ¼ interest
17 February 2005 External T.I. 2004-0104331E5 F - Indemnisation et autres paiements Income Tax Act - Section 5 - Subsection 5(1) portions of settlement payment that compensated for lost vacation credits and reimbursed for psychotherapy and medication costs were taxable under s. 5(1)
2005-02-18 17 February 2005 External T.I. 2004-0090411E5 F - Bien de remplacement-dispos. involontaire Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) replacement property potentially can be held through a partnership if the partnership property is physically similar
Income Tax Act - Section 13 - Subsection 13(4) rollover not available where building replaced by interest in partnership carrying on a similar business because the partnership interest is not depreciable property
16 February 2005 External T.I. 2004-0097161E5 F - Fin d'exercice d'une société de personnes Income Tax Act - Section 249.1 - Subsection 249.1(4) - Paragraph 249.1(4)(b) requirement that there not be a multi-tier partnership must be satisfied each fiscal period
8 February 2005 Internal T.I. 2004-0099681I7 F - Remboursement de frais de déménagement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement of reasonable living expenses incurred until the employee permanently occupies new home in employer’s area is not a benefit
16 February 2005 Internal T.I. 2004-0105401I7 F - Frais de publicité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose costs of commenting on an issue unrelated to the business were non-deductible
17 September 1998 External T.I. 98222950 F - Régime d'accession à la propriété - habitation admissible Income Tax Act - Section 146.01 - Subsection 146.01(1) - Qualifying Home qualifying home can be part of a larger commercial building
2005-02-11 2 February 2005 External T.I. 2004-0104671E5 F - Convention de retraite - Fonds mis de côté Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement amounts agreed to be paid post-retirement do not create an SDA if they are not reasonably regarded as deferred salary
Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement no requirement that payment to the other be in trust
3 February 2005 External T.I. 2005-0111871E5 F - Intérêts / mise à part de l'argent Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) cash damming to pay current deductible business expenses is an eligible use which continues with the business
3 February 2005 External T.I. 2005-0112141E5 F - Safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) safe income prorated on a partial crystallization of an accrued gain
2005-02-04 26 January 2005 Internal T.I. 2004-0101351I7 F - Déduction pour frais juridiques - Alinéa 60o) Income Tax Act - Section 60 - Paragraph 60(b) legal fees incurred in disputing sales tax assessments are not included
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose legal costs of disputing GST or sales tax assessments of a business are deductible
27 January 2005 Internal T.I. 2004-0103531I7 F - Dommages Intérêts art.1618- 1619 CCQ Income Tax Act - Section 9 - Compensation Payments Irving Oil applied to find that interest on damages received to compensate for additional costs incurred in a construction business, was business income
Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss - Paragraph (b) - Subparagraph (b)(ii) interest on damages received to compensate for a business loss, was business income

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