Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-07-02 28 June 2004 External T.I. 2004-0059311E5 F - Associated Corporations 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
Income Tax Regulations - Regulation 6205 - Subsection 6205(2) - Paragraph 6205(2)(a) - Subparagraph 6205(2)(a)(ii) - Clause 6205(2)(a)(ii)(A) - Subclause 6205(2)(a)(ii)(A)(II) trusts in which nieces and nephews were beneficiaries nonetheless were deemed NAL for purposes of satisfying Reg. 6205(2)(a)(ii)(A)(II)
31 May 2004 External T.I. 2003-0051971E5 F - Notion de capital aux fins de 20(1)c) de la Loi Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) stated capital inadequately measures capital for “filling the hole” purposes where PUC is ground under s. 85(2.1) or stated capital is increased to capitalize consolidated safe income
31 May 2004 External T.I. 2004-0055141E5 F - Vente de bien à un actionnaire Income Tax Act - Section 15 - Subsection 15(1) sale of newly constructed homes to shareholders at cost plus a gross margin did not avoid shareholder benefit issues
28 May 2004 Internal T.I. 2004-0064291I7 F - Paiement de dépenses Income Tax Act - Section 60.1 - Subsection 60.1(2) no need to expressly refer to ss. 56.1(2) and 60.1(2)
3 June 2004 External T.I. 2004-0068081E5 F - Allocation de retraite - Employeurs liés Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) predecessor employees were with whom service was recognized were related
1 June 2004 External T.I. 2004-0073441E5 F - Transfert d'un REÉR au décès Income Tax Act - Section 146 - Subsection 146(16) s. 146(16) cannot be utilized once one of the spouses has died
Income Tax Act - Section 146 - Subsection 146(8.1) whether s. 148(9.1) could be used to satisfy unpaid support of the deceased
31 May 2004 External T.I. 2004-0074381E5 F - Créance: calcul des intérêts Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) discount is not interest where its rate is “similar” to yield on similar bonds

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