Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-12-03 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) 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
16 November 2004 External T.I. 2004-0064821E5 F - 88(1) Bump Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c.3) - Subparagraph 88(1)(c.3)(ii) acquisition by Buyco of Target shares before its acquisition of control accommodated through restrictive interpretation of s. 88(1)(c.3)(ii)
Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(vi) - Clause 88(1)(c)(vi)(B) - Subclause 88(1)(c)(vi)(B)(I) where Buyco acquired Target shares before acquiring control of Target, Vendor would be a person described in s. 88(1)(c)(vi)(B)(I)
Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c.3) - Subparagraph 88(1)(c.3)(i) example of situation where the acquisition of shares of parent by vendor would not be within s. 88(1)(c.3)(i), but would fall within s. 88(1)(c.3)(ii)
10 November 2004 External T.I. 2004-0077831E5 F - Biens à usage personnel Income Tax Act - Section 9 - Capital Gain vs. Profit - Collectibles collection of items of personal interest accumulated over 35 years, with some trading, and then auctioned off, likely were capital property
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) - Subparagraph 45(1)(a)(i) offering personal collection on an auction site did not constitute a change of use
Income Tax Act - Section 46 - Subsection 46(3) selling off personal collection one-by-one on auction site did not engage s. 46(3)
27 October 2004 External T.I. 2004-0080901E5 F - Cotisation professionnelle-frais de traduction Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) costs of translating documents re the taxpayer’s foreign professional training did not qualify
2004-11-12 27 October 2004 External T.I. 2004-0063061E5 F - Provision pour somme payable Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose agreement of trust to pay all of its return, in excess of guaranteed return, to its manager likely would not satisfy s. 18(1)(a)
2 November 2004 External T.I. 2004-0063491E5 F - Droit de bénéficiaire et résidence principale Income Tax Act - Section 248 - Subsection 248(25) an individual who would take in the event of the intestacy of a named beneficiary of a trust is beneficially interested in the trust
Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) - Subparagraph (c.1)(ii) parents could be specified beneficiaries even if they would take only on the intestacy of a named beneficiary or if under the trust deed they had a habitation right
8 November 2004 External T.I. 2004-0067161E5 F - Change étranger Income Tax Act - Section 39 - Subsection 39(2) examples of FX conversions into and out of USD account of US share investor
22 October 2004 Internal T.I. 2004-0079791I7 F - Pension alimentaire Income Tax Act - Section 60.1 - Subsection 60.1(3) s. 60.1(3) did not apply since the judgment recognizing the amounts paid as support was given more than one year later
27 October 2004 External T.I. 2004-0080191E5 F - Paragraphes 6(1) et 6(2) de la Loi Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) annual recognition of s. 6(1)(e) standby charges does not reduce quantum of s. 6(1)(a) benefit where subsequent employee bargain-purchase of automobile
Income Tax Act - Section 15 - Subsection 15(5) benefit from bargain purchase of car from employer not reduced by previous s. 15(5) standby charges
27 October 2004 External T.I. 2004-0088581E5 F - Prêt à un actionnaire Income Tax Act - Section 15 - Subsection 15(2) - Paragraph 15(2)(b) exception unavailable to the extent loan funded renovations
Income Tax Act - Section 15 - Subsection 15(2) - Paragraph 15(2)(a) exception continues to apply following cessation of employment
8 November 2004 External T.I. 2004-0092021E5 F - RDTOH: Foreign tax credit under sub. 126(1) Income Tax Act - Section 129 - Subsection 129(4) - Non-Eligible Refundable Dividend Tax on Hand - Paragraph (a) - Subparagraph (a)(i) - Variable B RDTOH was reduced by s. 126(1) credit even where it related to a Canadian business rather than a source of property income
Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax foreign tax on royalty income generated from a Canadian business generating IP gave rise to credit under s. 126(1) rather than s. 126(2)]
10 November 2004 External T.I. 2004-0096991E5 F - Shareholders' agreement Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) Aco, owned by X, is associated with Zco, owned equally by X and Y, where the shareholders’ agreement provides that either can acquire the other’s shares on the latter’s disability
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) s. 256(1.4)(a) applied to a right to acquire the other’s shares even though it was reciprocal
8 October 2004 APFF Roundtable Q. 2, 2004-0085671C6 F - Scission d'entreprise - choix de 86.1 Income Tax Act - Section 86.1 - Subsection 86.1(2) sources of CRA information on s. 86.1
8 October 2004 APFF Roundtable Q. 6, 2004-0090831C6 F - 12(4) L.I.R. et fiducies personnelles Income Tax Act - 101-110 - Section 104 - Subsection 104(24) deemed income (e.g., under Reg. 7000) can be distributed if required by trust terms, or if permitted and trustee unconditionally exercise discretion to do so before year end

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