Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-07-16 6 July 2004 External T.I. 2004-0081631E5 F - Price Adjustment Clauses 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
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

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