Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-10-01 13 August 2004 Internal T.I. 2004-0076861I7 F - Investissement à l'étranger Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) return payable on maturity that was not expressed as a percentage or fraction qualified as interest
Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) would apply where loan proceeds would ultimately revert to the taxpayer
Income Tax Act - Section 108 - Subsection 108(2) - Paragraph 108(2)(a) suspension of redemption right for more than one year would disqualify as s. 108(2)(a) trust
16 September 2004 Internal T.I. 2004-0083421I7 F - Clause de non-concurrence - employé Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(e) amount received by employee for agreeing to non-compete was included under s. 6(3)(e)
2004-09-17 13 September 2004 Internal T.I. 2004-0080041I7 F - Compte de dividendes en capital Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (c.2) pro rata share of s. 14(1)(b) gain included in partner’s CDA
2004-09-03 27 July 2004 Internal T.I. 2004-0079111I7 F - Actions privilégiées à terme Income Tax Act - Section 248 - Subsection 248(1) - Term Preferred Share - Paragraph (b) contingent requirement for the majority shareholder’s shares to be redeemed on death represented a contingent control-acquisition right of the minority SFI under para. (b)
2004-08-20 29 July 2004 Internal T.I. 2003-0023761I7 F - Contrat de SWAP d'équité Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss loss on equity swap entered into in monetization transaction was on capital account
Income Tax Act - Section 248 - Subsection 248(1) - Disposition termination of equity swap contract entailed the disposition of property
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) swap termination payment could be deducted if it was incurred to make the disposition (the swap payment termination)
Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges equity swap was to hedge the risk under a capital borrowing, so that loss on closing out the swap was on capital account
29 July 2004 Internal T.I. 2004-0065971I7 F - Frais d'intégration de sociétés Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Current expense vs. capital acquisition costs of integrating targets that were on-charged to them after closing were currently deductible to parent
3 August 2004 Internal T.I. 2004-0077991I7 F - Allocations d'aide à domicile reçues de la SAAQ Income Tax Act - Section 3 - Paragraph 3(a) insurance proceeds to compensate for parent’s home care services provided to disabled son were non-taxable
Income Tax Act - Section 152 - Subsection 152(1) CRA applies changes to its position as a result of taxpayer-friendly judgments effective to post-judgment assessments
2004-08-13 12 July 2004 Internal T.I. 2004-0077981I7 F - Dédommagement-Régime de pension Income Tax Act - Section 3 - Paragraph 3(a) lump sum settlement of pension claim was non-taxable
2004-08-06 20 July 2004 External T.I. 2004-0062031E5 F - Actif utilisé dans entreprise exploitée activement Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) - Subparagraph (c)(i) vacant land not used in carrying on a business if merely subdivided and sold
Income Tax Act - Section 248 - Subsection 248(1) - Business an adventure is not “carried on” if there is insufficient activity
Income Tax Act - Section 125 - Subsection 125(7) - Active Business Carried On by a Corporation an adventure is a business for s. 125(1) (but not 110.6) purposes even if it is not carried on
30 July 2004 External T.I. 2004-0063811E5 F - Soutien administratif à une filiale Income Tax Act - Section 37 - Subsection 37(8) - Paragraph 37(8)(a) - Subparagraph 37(8)(a)(ii) - Clause 37(8)(a)(ii)(A) parent can use traditional method while subsidiary uses proxy method
Income Tax Act - Section 37 - Subsection 37(13) administrative support tasks of the parent respecting SR&ED activities of its subsidiary would not be considered SR&ED of the parent
3 August 2004 External T.I. 2004-0066431E5 F - Contrat de rente et fiducie Income Tax Act - Section 75 - Subsection 75(2) "by a trust" includes any transaction performed by the trustees
23 July 2004 External T.I. 2004-0067861E5 F - Transfert d'une terre à bois à un enfant Income Tax Act - Section 70 - Subsection 70(9) - Paragraph 70(9)(a) certified forest management plan filed to obtain forest producer status under the Forest Act (Quebec) generally qualified
13 July 2004 Internal T.I. 2004-0068521I7 F - Date d'exécution - Affaire Miller Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(ii) Miller incorrect: change in aggregate (but not per-child) amount triggers commencement date
15 July 2004 Internal T.I. 2004-0071101I7 F - Site de neiges usées Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) waste snow storage site was qualifying surface construction
Income Tax Regulations - Schedules - Schedule II - Class 6 - Paragraph (e) tank for holding waste snow melt and decanting the pollutants was a storage tank (Class 6(e))
Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(c) tank for holding waste snow melt and decanting the pollutants was not a building used in processing
27 July 2004 External T.I. 2004-0077581E5 F - Transfert d'un REÉR à une fiducie Income Tax Act - Section 146 - Subsection 146(2) - Paragraph 146(2)(b.4) qualifying RRSP cannot have a trust as the annuitant
Income Tax Act - Section 146 - Subsection 146(12) transfer by an individual of his RRSP to a trust set up for his exclusive benefit would engage s. 146(12)(b)
Income Tax Act - Section 146 - Subsection 146(1) - Retirement Savings Plan listing of qualified issuers
3 August 2004 Internal T.I. 2004-0078781I7 F - Déduction de l'impôt sur la masse salariale Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose Quebec payroll tax on financial institutions is deductible
8 July 2004 External T.I. 2004-0079771E5 F - Crédit pour pension - FRV Income Tax Act - Section 118 - Subsection 118(7) - Qualified Pension Income - Paragraph (a) amounts from LIF not pension income
30 July 2004 External T.I. 2004-0083841E5 F - Développement informatique Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A whether an interest in software has been acquired is determined under common or civil law
2004-07-30 9 July 2004 External T.I. 2004-0079221E5 F - Indemnité pour mauvaise information Income Tax Act - Section 3 - Paragraph 3(a) compensation received for incorrect computation of pension benefit is non-taxable
2004-07-23 13 July 2004 External T.I. 2004-0058141E5 F - Transfert du droit aux revenus provenant d'un bien Income Tax Act - Section 248 - Subsection 248(3) assignment of the rents from a rental property to a corporation would result in a disposition to a deemed trust under s. 248(3)
Income Tax Act - Section 85 - Subsection 85(1) rollover not available to assignment of the rents from a rental property to a corporation for shares since the transferee was a deemed trust under s. 248(3)
Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) applicable to assignment of the rents from a rental property to a corporation giving rise to a deemed trust under s. 248(3)
2004-07-16 6 July 2004 External T.I. 2004-0081631E5 F - Price Adjustment Clauses Income Tax Act - Section 85 - Subsection 85(1) ticking "yes" box on election form is sufficient notice of price adjustment clause
General Concepts - Effective Date no requirement to notify CRA of price-adjustment clause otherwise than by ticking box on any prescribed form
Income Tax Act - Section 51 - Subsection 51(1) no requirement to notify CRA of price-adjustment clause regarding a s. 86 or 51 exchange
2004-07-09 29 June 2004 External T.I. 2004-0065941E5 F - Revenu de bien ou d'entreprise exploitée active Income Tax Act - Section 129 - Subsection 129(6) double application of s. 129(6) where active business sub pays interest to its Holdco parent which, in turn, pays interest to its parent
24 June 2004 Internal T.I. 2004-0068381I7 F - Date d'exécution Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(ii) change in required support amount triggers commencement day regardless of the number of children covered by the changed support

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