Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-11-19 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
2004-11-05 25 October 2004 External T.I. 2004-0077031E5 F - Application de la division 20(1)e.2)(i)(B) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) - Subparagraph 20(1)(e.2)(i) - Clause 20(1)(e.2)(i)(B) condition in s. 20(1)(e.2)(i)(B) is satisfied for a year if only a portion of the interest is deductible in that year pursuant to s. 20(1)(c)(iv)
8 October 2004 APFF Roundtable Q. 8, 2004-0090801C6 F - Benefit to Shareholders Income Tax Act - Section 15 - Subsection 15(1) s. 15(1) could apply where corporate funds used to acquire non-participating preferred shares
2004-10-29 15 October 2004 External T.I. 2004-0068421E5 F - Bien de remplacement Income Tax Act - Section 44 - Subsection 44(5) replacement property can be acquired from a related person
Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) rental use is a similar use even if shift from residential to commercial use
18 October 2004 External T.I. 2004-0077151E5 F - Déduction pour gain en capital Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(ii) no requirement for the combined period of holding to be 24 months
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (e) para. (e) effectively requires a combined 24-month holding period for s. 110.6(14)(f)(i) or (iii) transactions
28 September 2004 Internal T.I. 2004-0079801I7 F - Pension alimentaire Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount settlement of support arrears are not deductible or includible
30 September 2004 Internal T.I. 2004-0083301I7 F - Entreprises distinctes Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) 2 different centres were branches of the same business
30 September 2004 Internal T.I. 2004-0085051I7 F - Intérêts et indemnité additionnelle Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) indemnity under CCQ Art. 1619 was pre-judgment interest
Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss interest on damages relating to lost business was active business income
19 October 2004 Internal T.I. 2004-0085711I7 F - Dommages suite à une entente hors cour Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance amount received in settlement of grievances and on agreeing to retire was a retiring allowance in the absence of evidence that it was for harassment or unpaid wages
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) required repayment of excess amount of wage loss insurance previously received could give rise to s. 8(1)(n) deduction
25 October 2004 External T.I. 2004-0086261E5 F - Ristournes Income Tax Act - Section 135 - Subsection 135(1.1) patronage dividends paid after March 22, 2004 are non-deductible even if reported before then
20 October 2004 Internal T.I. 2004-0086501I7 F - Droits compensateurs Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(vv) posting of bonds for US countervailing duties did not constitute their being “paid” for s. 20(1)(vv) purposes
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) obligation to repay suppliers for extra US countervailing duties charge made to them was contingent until a board decision reversed such duties
8 October 2004 Internal T.I. 2004-0093371I7 F - Crédit d'impôt à l'investissement & impôt minimum Income Tax Act - Section 127 - Subsection 127(5) - Paragraph 127(5)(a) - Subparagraph 127(5)(a)(ii) carryback of ITCs from year where the taxpayer was subject to minimum tax
19 October 2004 Internal T.I. 2004-0094971I7 F - Programme de formation admissible Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program “period” referred to the times at which the individual was receiving income from employment
8 October 2004 APFF Roundtable Q. 1, 2004-0085551C6 F - Application de la division 20(1)e.2)(i)(B)

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