Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
2 February 2005 Internal T.I. 2005-0111961I7 F - Reassessment of a Partner Income Tax Act - Section 152 - Subsection 152(1.4) CRA can assess a partner directly to change the partnership income allocable to it rather than being required to make a partnership-level determination under s. 152(1.4)
2005-01-28 19 January 2005 External T.I. 2004-0075601E5 F - Fiducie de fonds commun de placement Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) no ACB reduction from distribution of ordinary income or capital gain (cf. ROC distribution) irrespective whether effected as cash or unit distribution
Income Tax Act - Section 248 - Subsection 248(25.3) cost under s. 248(25.3) for distribution of ordinary income or capital gain made as units distribution
19 January 2005 External T.I. 2004-0081001E5 F - Réserve de valorisation d'une coopérative Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage question of fact whether distributions of enhancement reserves are allocations in accordance with patronage
Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(b) enhancement reserve of Quebec cooperative added to capital
5 January 2005 External T.I. 2004-0085571E5 F - Art. XXIV de la Convention Canada-France Treaties - Income Tax Conventions - Article 25 Art. 24(1) of Canada-France Convention would provide the principal residence exemption to a Canadian citizen if France accorded the exemption to a French national residing in Canada
6 January 2005 External T.I. 2004-0087221E5 F - Modification de la déclaration d'une société Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) return amendment should be requested where a capital gain has been unreported due to a missed ROC distribution
6 January 2005 External T.I. 2004-0088791E5 F - Paragraphe 4803(2) du Règlement Income Tax Regulations - Regulation 4803 - Subsection 4803(2) Reg. 4803(2) satisfied if any of its paragraphs is satisfied
24 January 2005 External T.I. 2004-0099471E5 F - Convention de retraite pour un actionnaire-employé Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(r) no deduction regarding pre-incorporation services, and longstanding CRA position re shareholder-manager compensation
Income Tax Act - Section 67 81 Roundtable position on shareholder-manager compensation also applies to RCA contributions
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(x) Part XI.3 tax and s. 56(1)(x) income inclusion apply even where RCA contribution is partially or fully non-deductible
Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement a significant reduction in bonus or salary matched by an RCA contribution likely suggests it instead is an SDA
20 January 2005 External T.I. 2004-0104921E5 F - RPDB et déficit cumulé Income Tax Act - Section 147 - Subsection 147(1) - Profit Sharing Plan corporation with an accumulated deficit is not precluded from registering a DPSP
2005-01-21 10 January 2005 Internal T.I. 2004-0091251I7 F - Définition d'automobile Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(iii) exclusion applies even where the occupant is self-employed rather than an employee of the business that owns (or leases) the truck
19 January 2005 External T.I. 2004-0091601E5 F - Incitatif versé - taux d'intérêt réduit Income Tax Act - Section 53 - Subsection 53(2.1) ss. 13(7.4) and 53(2.1) elections unavailable re acquired rental property for cashback received from mortgage lender to offset high interest rate

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