Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-07-09 28 June 2004 Internal T.I. 2004-0073761I7 F - Dommages-intérêts-perte d'emploi Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance damages for failure to reinstate the taxpayer were a retiring allowance
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(l.1) reimbursement of legal costs incurred to recover damages for failure to reinstate were includible under s. 56(1)(l.1)
Income Tax Act - Section 60 - Paragraph 60(o.1) deduction for legal fees incurred to recover damages that were retiring allowance
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) change regarding pre-judgment interest judicially ordered after 2003
29 June 2004 External T.I. 2004-0078951E5 F - Non Arm's Length Sale of Shares, Surplus Stripping Income Tax Act - Section 84.1 - Subsection 84.1(1) s. 84.1 could apply if unrelated purchaser is an accommodation party
29 June 2004 Internal T.I. 2004-0081901I7 F - Taxable Benefit - Life Insurance Premiums Income Tax Act - Section 15 - Subsection 15(1) benefit from payment by corporation of life insurance premiums on policy of which shareholder’s spouse is the beneficiary is based on the premiums so paid
2004-07-02 28 June 2004 External T.I. 2004-0059311E5 F - Associated Corporations Income Tax Act - Section 256 - Subsection 256(3) - Paragraph 256(3)(a) "controlled, directly or indirectly in any manner whatever" includes de jure control
Income Tax Act - Section 256 - Subsection 256(6) where s. 256(6) applies, it excludes both de jure and de facto control by the creditor
Income Tax Act - Section 256 - Subsection 256(5.1) the defined phrase includes de jure control
24 June 2004 Internal T.I. 2004-0065301I7 F - Frais médicaux - purificateur d'air Income Tax Regulations - Regulation 5700 - Section 5700 - Paragraph 5700(c.1) air exchanger can also serve as air purifier/ “severe” excludes seasonal allergies
2004-06-25 18 May 2004 External T.I. 2002-0168191E5 F - Somme reçue après la fin d'une succession Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) pension payment received after estate termination was included in beneficiaries’ income pursuant to s. 56(1)(a) rather than s. 104(13)
Income Tax Act - Section 104 - Subsection 104(13) pension payment received after estate termination bypassed the s. 104(6) and s. 104(13) system
17 June 2004 External T.I. 2003-0045411E5 F - Entreprise de placement déterminée Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business - Paragraph (a) partnership business is transparent but separate from similar business carried on directly
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) business carried on through partnership is separate from similar business carried on directly by partner
Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business - Paragraph (b) para. (b) may not apply where the SIB is carried on through a partnership
18 June 2004 External T.I. 2004-0058621E5 F - Société agricole familiale Income Tax Act - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation shares did not qualify where 24-month holding period not satisfied after s. 85(1) roll in of farming business
22 June 2004 External T.I. 2004-0060211E5 F - Allocation pour utilisation d'un véhicule à moteur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) travel from home to numerous different customer locations was not personal
21 June 2004 External T.I. 2004-0074851E5 F - Allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance severance was a retiring allowance even though the employee was hired by another municipality that had agreed to take over the municipal functions of her first employer
Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) two municipalities were not Crown agents or controlled by provincial government and, therefore, were not related
Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(C) unrelated person who has assumed a severance payment obligation is treated as paying the severance on behalf of the “employer” who terminated
2004-06-18 12 May 2004 Internal T.I. 2004-0061071I7 F - Assistance sociale - Famille d'accueil Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) receipt of special allowance by the public institution under the CCTB program does not render the assistance to the individual taxable
8 June 2004 Internal T.I. 2004-0067401I7 F - Dépenses d'une entreprise illégale Income Tax Act - Section 9 - Computation of Profit onus on taxpayer, who did not keep records, to displace the net worth assessment method results
General Concepts - Onus onus on taxpayer, who did not keep records, to displace the net worth assessment results, with documentation or other “acceptable evidence”
Income Tax Act - Section 20 - Subsection 20(16) terminal loss when illegal equipment was forfeited to the Crown by court order
Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property disposition when illegal equipment was forfeited to the Crown by court order, rather than when it was seized by the RCMP
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees incurred to defend criminal charges for carrying on an illegal drug business were non-deductible
10 June 2004 Internal T.I. 2004-0073781I7 F - Orphelins et orphelines de Duplessis - intérêts Income Tax Act - Section 3 - Paragraph 3(a) interest earned on tax-free injury award was taxable
11 June 2004 External T.I. 2004-0076291E5 F - Renonciation aux intérêts à recevoir Income Tax Act - Section 12 - Subsection 12(3) renunciation of accrued interest during the year means that there is no inclusion of such interest during the year under s. 12(3) or 12(1)(c)
2004-06-11 18 May 2004 Internal T.I. 2004-0063351I7 F - Double déduction des intérêts et paragraphe 18(6) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) double-dip structure does not preclude access to s. 20(1)(c) deduction
Income Tax Act - Section 18 - Subsection 18(6) thin cap rules not engaged by parent guarantee
28 May 2004 Internal T.I. 2004-0065101I7 F - Tenures à bail - Catégorie 13 et loyers Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs rent on premises continued to be deductible after they were vacated
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) vacated leased premises continued to qualify as Class 13 property
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) no change of use when premises were vacated
Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property no disposition when premises were vacated (but not abandoned)
28 May 2004 External T.I. 2004-0065291E5 F - Corp. associated through a third corp.: 256(2) Income Tax Act - Section 256 - Subsection 256(2) “either of the other two corporations" in pre-2016 version interpreted as "both of the other corporations"
31 May 2004 External T.I. 2004-0069681E5 F - Adjusted Cost Base of Real Property Income Tax Act - Section 54 - Adjusted Cost Base legal fees and settlement payment made in connection with disputed legacy of residence might be an addition to its ACB
3 June 2004 Internal T.I. 2004-0072971I7 F - Taxable Benefit - Life Insurance Premiums Income Tax Act - Section 15 - Subsection 15(1) no benefit conferral where corporation pays premiums on policy on life of its shareholder of which it is the policyholder and beneficiary
1 June 2004 Internal T.I. 2004-0078161I7 F - ITCs - Winding-up Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(e.3) ITCs incurred by sub only available to parent for post-wind-up years
Income Tax Act - Section 88 - Subsection 88(1) to be “wound up” there must generally be evidence that the sub will soon be dissolved
2004-06-04 27 May 2004 External T.I. 2003-0031231E5 F - Actions visées par règlement-gel successoral Income Tax Regulations - Regulation 6205 - Subsection 6205(2) - Paragraph 6205(2)(a) - Subparagraph 6205(2)(a)(i) test satisfied where the purpose was solely estate-freezing

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