Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-12-17 2 December 2004 External T.I. 2004-0083931E5 F - Frais relatifs à une garantie prolongée 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
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)

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