Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2005-01-14 10 January 2005 External T.I. 2004-0095361E5 F - Dommages Income Tax Act - Section 3 - Paragraph 3(a) courts have preferred to tax on the basis of an identified source
13 January 2005 External T.I. 2004-0097911E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program education credit unavailable where the course consisted of discrete 4-day sessions separated by a month or more – but tuition credit may be available
6 January 2005 Internal T.I. 2004-0100241I7 F - Imposition des rentes au décès Income Tax Act - Section 148 - Subsection 148(2) - Paragraph 148(2)(b) no disposition of PAC under s. 148(2)(b) – but disposition if estate elects to commute
Income Tax Act - Section 148 - Subsection 148(9) - Proceeds of the Disposition - Paragraph (d) disposition gain based on accumulating fund
13 January 2005 External T.I. 2004-0101701E5 F - Bien substitué Income Tax Act - Section 248 - Subsection 248(5) - Paragraph 248(5)(b) substituted property definition in s. 248(5)(b) does not apply for the purposes of s. 7(1.1)
Statutory Interpretation - Interpretation/Definition Provisions deeming provision only engaged when the referenced term is used
Income Tax Act - Section 7 - Subsection 7(1.1) s. 248(5)(b) inapplicable to s. 7(1.1)
13 January 2005 External T.I. 2004-0103281E5 F - dons et avantages Income Tax Act - Section 248 - Subsection 248(32) value of advantage should be based on FMV and ignore sales tax and tips
2005-01-07 21 December 2004 External T.I. 2004-0085481E5 F - Titres détenus par une compagnie d'assurance Income Tax Act - Section 142.2 - Subsection 142.2(1) - Mark-to-Market Property MFT units not mark-to-market property
Income Tax Act - Section 248 - Subsection 248(1) - Inventory per Friesen, securities held on income account are inventory
21 December 2004 External T.I. 2004-0091011E5 F - Déductibilité-primes d'assurance-responsabilité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs premiums for professional liability coverage incurred after the cessation of practice for continued coverage re that practice, are deductible
21 December 2004 External T.I. 2004-0093361E5 F - Report de l'impôt minimum de remplacement-décès Income Tax Act - Section 120.2 - Subsection 120.2(2) if the tax generated in the terminal year is insufficient to recover the AMT paid in the preceding year, the deceased individual can no longer utilize a s. 120.2(2) carryback
21 December 2004 Internal T.I. 2004-0096211I7 F - Remise de dettes Income Tax Act - Section 80.01 - Subsection 80.01(4) no need for s. 80.01(4) election if assets of sub in the amount of the debt owing to the parent are distributed on the winding up in payment of that debt
13 December 2004 Internal T.I. 2004-0097931I7 F - Définition de Divertissement - 67.1(4) Income Tax Act - Section 67.1 - Subsection 67.1(4) - Paragraph 67.1(4)(b) no application of s. 67.1 where employer operates a fitness centre for its employees
16 December 2004 Internal T.I. 2004-0098631I7 F - Déduction - Résidence des membres du clergé Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) based on Noseworthy, RC lay pastoral workers (in one case, authorized to baptize on occasion) were not regular ministers
16 December 2004 Internal T.I. 2004-0100891I7 F - Prestations d'assistance sociale Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) government and user-funded assistance with accommodation and care while attending psychiatric day hospital was exempted
2004-12-31 20 December 2004 External T.I. 2004-0092871E5 F - Arm's Length: de facto control Income Tax Act - Section 256 - Subsection 256(5.1) Silicon Graphics has not changed the CRA view that the holder of a large demand note can have de facto control
17 December 2004 External T.I. 2004-0095331E5 F - Déductibilité des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) where 1/3 of property, that had appreciated after being acquired with borrowed money, is sold and used for personal purposes, 1/3 of the interest ceases to have an eligible current use
2004-12-17 1 December 2004 Internal T.I. 2004-0065131I7 F - Sécurité sociale des États-Unis Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) US disability benefits under the US Social Security Act converted at age 62 to retirement benefits are includible under s. 56(1)(a)(i)
17 November 2004 External T.I. 2004-0067981E5 F - Fiducie de fonds commun de placement Income Tax Act - Section 132.11 - Subsection 132.11(6) s. 132.11(6) income must be pushed out to the unitholders in order to generate a s. 132.11(7) deduction
16 December 2004 External T.I. 2004-0070341E5 F - Déduction des intérêts sur un deuxième emprunt Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on money borrowed to pay interest on an interest-deductible loan is deductible
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

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