Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-10-15 12 October 2004 External T.I. 2004-0086331E5 F - Allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance instalments paid to terminated employee will be treated as s. 5 income if they are treated as employment income for CPP/EI purposes or as eligible for pension plan service years
14 October 2004 External T.I. 2004-0089921E5 F - Disposition d'une police d'assurance-vie Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis - Element L deduction of net cost of pure insurance effectively renders return of premiums partially taxable
2004-10-01 21 September 2004 External T.I. 2004-0067881E5 F - MCIA- lien de dépendance Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable A - Variable A.1 transferor must not be dealing at arm's length with the taxpayer at the time the eligible capital property is acquired
15 September 2004 Internal T.I. 2004-0075001I7 F - Transfert de bien lors du décès d'un conjoint Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(d) application of s. 70(13) avoided recapture to deceased
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

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