Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-12-17 10 December 2004 External T.I. 2004-0080141E5 F - Remboursement de cotisations syndicales Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(j) refunds in excess of current year’s paid dues are income
15 December 2004 External T.I. 2004-0081411E5 F - Société étrangère Income Tax Act - Section 91 - Subsection 91(1) overview of FAPI rules/ rules in ss. 15(1), 56(2) or 246(1) apply in addition
Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) deemed disposition on emigration of individual’s shares of CFA
10 December 2004 Internal T.I. 2004-0082341I7 F - Dissolution d'un syndicat Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(j) liquidating distribution to union members required to be allocated first to taxable refund of dues, and balance to proceeds of disposition of their memberships
Income Tax Act - Section 54 - Capital Property liquidating distribution to union members gave rise to capital gain
2 December 2004 External T.I. 2004-0083931E5 F - Frais relatifs à une garantie prolongée Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) cost of extended car warranty that meets the s. 8(1)(f) or (h.1) conditions is deductible on cash basis
Income Tax Act - Section 18 - Subsection 18(9) cost of extended car warranty is subject to s. 18(9)
13 December 2004 External T.I. 2004-0088971E5 F - Change étranger Income Tax Act - Section 9 - Computation of Profit transactions can be recorded at the average exchange rate provided that a year end adjustment is made
3 December 2004 External T.I. 2004-0089341E5 F - Intérêts et frais juridiques Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) interest on amount held in court until judgment rendered was contingent, and non-includible, until judgment rendered
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees to recovery a legacy were non-deductible
16 December 2004 External T.I. 2004-0093221E5 F - Résidence des membres du clergé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) RC lay pastoral workers not authorized to exercise most functions of a minister are not regular ministers/ position must be of some permanence
9 December 2004 External T.I. 2004-0093621E5 F - REÉR et faillite Income Tax Act - Section 146 - Subsection 146(8) income inclusion to bankrupt once the RRSP fund is seized by creditor after court ruling
13 December 2004 External T.I. 2004-0094991E5 F - Look-Back Rule: Flow-Through Shares Income Tax Act - Section 66 - Subsection 66(12.66) issuance of shares pursuant to flow-through warrant starts a fresh 24-month period and fresh application of s. 66(12.66) look-back rule
7 December 2004 External T.I. 2004-0103061E5 F - Non Arm's Length Sale of Shares-Surpl. Stripping Income Tax Act - Section 84.1 - Subsection 84.1(1) application of s. 84.1 if company sold to accommodation party, followed by wind-up of that company and payment of purchase price
Income Tax Act - Section 245 - Subsection 245(4) scheme of Act requires that a corporate distribution be treated as income, regardless of form
7 December 2004 External T.I. 2004-0104321E5 F - Non Arm's Length Sale of Shares Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(b) s. 84.1(2)(b) inapplicable where member of control group of Aco sells Aco shares to Bco of which he does not own shares
2004-12-03 28 April 2004 Internal T.I. 2004-0066991I7 F - Paiement incitatif Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) incentive payments received from broker to purchase an exempt life insurance policy were received “in the course of earning income from … property” (the policy)
Income Tax Act - Section 248 - Subsection 248(1) - Property property “includes practically any type of economic interest”
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose per MacIntyre, life insurance premiums are not deductible from business income
25 November 2004 External T.I. 2004-0079751E5 F - Dépenses d'une auberge limitées par 18(12) Income Tax Act - Section 18 - Subsection 18(12) s. 18(12) would apply to the joint owners of an inn whose wives operate it, with them staying with them on weekends/ no avoidance if partnership interposed
Income Tax Act - Section 96 pro rata rent received by the 2 equal partners of a partnership operating an inn jointly owned by them would not be respected as rent
12 November 2004 External T.I. 2004-0080051E5 F - Allocation et remboursement de dépenses-employé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) per-kilometre allowance tainted because a per-diem allowance also paid
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) per-hour reimbursement of employees’ use of equipment is taxable allowance/ reimbursed employment-related internet use is not taxable
29 November 2004 External T.I. 2004-0080891E5 F - Régime d'assurance invalidité Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) employer cannot render a disability plan a full employee-funded plan by arbitrarily allocating composite employee contributions to that plan
3 November 2004 Internal T.I. 2004-0083791I7 F - Paragraphe 44.1(2) Income Tax Act - Section 44.1 - Subsection 44.1(1) - Eligible Small Business Corporation shares were not of an eligible small business corporation given that only business activity was desultory zoning application
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs business did not commence with zoning application that was not actively pursued
Income Tax Act - Section 44.1 - Subsection 44.1(8) pre-condition of carrying on business not satisfied / general overview provided
30 November 2004 External T.I. 2004-0090181E5 F - Assurance maladie grave Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) no capital gain on receipt by corporation of benefit under a critical illness insurance policy or of refund of premiums
Income Tax Act - Section 15 - Subsection 15(1) misallocation shareholder benefit could arise if corporation pays premiums for its critical illness policy and sole shareholder pays for rider entitling him to premium refunds
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) premiums paid by corporation for critical illness policy of which it is beneficiary are non-deductible pursuant to s. 18(1)(h)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose premiums paid by corporation for critical illness policy of which it is beneficiary are non-deductible per s. 18(1)(a) or (h)
16 November 2004 Internal T.I. 2004-0092521I7 F - Frais médicaux - époux Income Tax Act - Section 118.2 - Subsection 118.2(1) expenses of other spouse incurred in year prior to their becoming spouses or common-law partners cannot be claimed
30 November 2004 External T.I. 2004-0092941E5 F - Déductibilité des intérêt Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest deduction not generally denied where negative spread
23 November 2004 External T.I. 2004-0094101E5 F - IT-474R Administrative Relief Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) IT-474R, para. 10 provides no administrative relief from short taxation year from amalgamation
Income Tax Act - Section 20 - Subsection 20(24) amalgamated corporation can make s. 20(24) election
17 November 2004 External T.I. 2004-0097131E5 F - Travail temporaire; négociation de contrats Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) union executives standing for election every 4 years would not have duties of a temporary nature
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(v) expenses of union employee in negotiating contracts with the union members’ employers would not be included
29 November 2004 External T.I. 2004-0105131E5 F - Avantages sur options - Diminution de valeur Income Tax Act - Section 7 - Subsection 7(8) s. 7(1)(a) benefit is realized under s. 7(8) based on shares’ FMV at exercise, and capital loss is realized if the shares decline before their disposition
2004-11-19 10 November 2004 External T.I. 2004-0092561E5 F - 85(1), 248(1) "Disposition" Income Tax Act - Section 85 - Subsection 85(1) no disposition on common-for-common exchange
Income Tax Act - Section 248 - Subsection 248(1) - Disposition no disposition to the extent that there is a dirty s. 95 exchange of old common shares for identical new common shares

Pages