Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-06-04 31 May 2004 External T.I. 2004-0074381E5 F - Créance: calcul des intérêts 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
2004-04-16 13 April 2004 External T.I. 2003-0052291E5 F - Participation exclue - Par. 40(3.15) de la Loi Income Tax Act - Section 40 - Subsection 40(3.15) “exempt interest” status not lost if the partnership property becomes a source of property rather than active business income
6 April 2004 Internal T.I. 2004-0067761I7 F - Indemnisation pour perte dans un REÉR Income Tax Act - Section 146 - Subsection 146(8) damages received by the annuitant but promptly on-paid to the RRSP do not constitute a premium or benefit
2004-04-09 5 April 2004 External T.I. 2003-0034061E5 F - Frais relatifs aux études payés par l'employeur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) “allowance” received based on an estimate of costs incurred by employee for employer-desired master's degree would not be taxable
5 April 2004 External T.I. 2003-0050331E5 F - Allocations vestimentaires/Policiers Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) civvy clothing allowances received by police officers likely were taxable
2004-04-02 26 March 2004 Internal T.I. 2004-0060361I7 F - Date d'exécution Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day a request for support reinstatement that was styled by the court as a motion to establish support triggered a "commencement day”
30 March 2004 Internal T.I. 2004-0062711I7 F - tenure à bail Income Tax Regulations - Schedules - Schedule III - Section 4 not possible to extend the depreciation period
2004-03-26 28 January 2004 External T.I. 2003-0028891E5 F - Perte sur change relative à des contrats de change Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange CGE established that accrued loss on FX forward contract is not a contingent liability
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) CRA position regarding recognition of accrued income account losses is subject to any application of ss. 18(1)(a) and (e)
23 March 2004 External T.I. 2003-0049031E5 F - Paragraphe 15(2) de la Loi et "montant remis" Income Tax Act - Section 15 - Subsection 15(2) loan that was anticipated to be forgiven was not a bona fide loan, so that s. 15(2) did not apply
Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract loan that was anticipated to be forgiven was not in fact a loan
Income Tax Act - Section 15 - Subsection 15(1.21) inclusion under s. 56(2) avoided second inclusion under s. 15(1.21)

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