Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-06-11 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
Income Tax Act - Section 20 - Subsection 20(21) overview of s. 20(21)
31 May 2004 Internal T.I. 2004-0077341I7 F - Déduction de 110(1)d) de la Loi Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) - Subparagraph 110(1)(d)(ii) FMV may depart from the market price of shares
General Concepts - Fair Market Value - Shares market price is a prima facie indication of share FMV
2004-05-28 25 May 2004 External T.I. 2003-0051291E5 F - Formation et croisière Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training deducible cost of cruise that included seminars would not exceed the cost of a comparable domestic course
Income Tax Act - Section 20 - Subsection 20(10) costs of cruise, if not viewed as training, would be non-deductible as they were incurred outside Canada
2004-05-21 13 May 2004 External T.I. 2003-0051951E5 F - Course automobile amateur Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit if amateur car racing had a personal element, it should be determined whether it was carried on in a sufficiently commercial manner to be a business source
18 May 2004 External T.I. 2004-0069691E5 F - Incorporation des professionnels Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(b) WIP subject to s. 34 election is tranferred at nil
Income Tax Act - Section 34 insolvency practice carried on by accountants does not qualify as accountancy
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(a) - Subparagraph 40(2)(a)(ii) only s. 40(2)(a)(ii)(A), not (B) or (C), is potentially engaged where transferor is individual
Income Tax Act - Section 249.1 - Subsection 249.1(2) s. 249.1(2) not engaged by virtue only of no income being allocated to the partner
12 May 2004 External T.I. 2004-0072951E5 F - Ristournes versées dans un REÉR Income Tax Act - Section 135 - Subsection 135(3) no 15% withholding where patronage dividend paid to RRSP or other exempt
2004-05-14 11 May 2004 External T.I. 2004-0069521E5 F - Don de biens culturels Income Tax Act - Section 248 - Subsection 248(32) s. 248(32) inapplicable where contract of sale rather than deed of gift
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Cultural Gifts - Paragraph (a) no donation of an object where donation of an interest therein
28 April 2004 Internal T.I. 2004-0071191I7 F - À quoi se rattache l'élément contrôle/propriété? Income Tax Act - Section 104 - Subsection 104(1) ownership or control test relates to all the listed persons
2004-05-07 30 April 2004 External T.I. 2003-0045851E5 F - L'affaire Gillette Canada inc. Income Tax Act - Section 15 - Subsection 15(2) CRA does not follow Gillette Canada
27 April 2004 External T.I. 2003-0048351E5 F - Prestation de décès versée par la RRQ Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a.1) amounts paid directly to heirs are not included in income
3 May 2004 External T.I. 2003-0049061E5 F - Calcul du PBR d'une terre agricole Income Tax Act - Section 43 - Subsection 43(1) allocation by sq. m. not always appropriate
4 May 2004 Internal T.I. 2004-0060871I7 F - Frais de coaching Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) coaching expenses of self-employed person were personal
4 May 2004 Internal T.I. 2004-0062671I7 F - Associé qui se joint à une société de personnes Income Tax Act - Section 34.2 - Old 34.2 former s. 34.2(3) permitted the continuation of the former Dec. 31, 1995 professional income reserve on joining a similar partnership
Income Tax Act - Section 249.1 - Subsection 249.1(4) taxpayer bound by previous off-calendar year election of partnership which he joined
28 April 2004 External T.I. 2004-0066201E5 F - Associated Corporations - Control by same person Income Tax Act - Section 256 - Subsection 256(2) illustration of application of s. 256(2)
28 April 2004 External T.I. 2004-0066231E5 F - Connected Corporations Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a) connected corporation exemption applied at the time of receipt rather than declaration of the dividend
21 April 2004 Internal T.I. 2004-0070901I7 F - 163(2) Penalty - Off-Calendar Fiscal Period Income Tax Act - Section 163 - Subsection 163(2.1) - Paragraph 163(2.1)(a) penalty for failure to bring reserves back into income reduced under s. 163.2(2.1)(a)(ii) for further deductible reserve amounts
2004-04-30 27 April 2004 External T.I. 2004-0062091E5 F - 55(3)(a) Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(a) s. 55(3)(a) exception applicable where spin-off from one parent-controlled corporation to another, notwithstanding the children shareholders are unrelated under s. 55(5)(e)(i)
Income Tax Act - Section 55 - Subsection 55(4) s. 55(4) inapplicable where parent retains control for the protection of parent’s economic interests
28 April 2004 Internal T.I. 2004-0067561I7 F - Impôt de la partie I.3 Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) no IT-474, para. 10 relief for acceleration of Part I.3 tax
28 April 2004 Internal T.I. 2004-0071331I7 F - Régime d'investissement coopératif du Québec Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(k) listed assistance does not include a deduction from taxable income
2004-04-23 15 April 2004 Internal T.I. 2004-0062451I7 F - Résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (c) no need to file form for principal residence portion of disposed-of property if it was fully exempted
19 April 2004 External T.I. 2004-0063851E5 F - Année d'imposition du revenu d'entreprise Income Tax Act - Section 249.1 - Subsection 249.1(4) s. 249.1(1)(b) requires inclusion of partnership income in current calendar year where it ceases to carry on business in the year

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