Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-02-13 10 February 2004 External T.I. 2003-0053311E5 F - Indemnité de préavis - allocation de retraite Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance bifurcation of termination payment into s. 5 payment in lieu, and excess as retiring allowance
6 February 2004 External T.I. 2004-0057821E5 F - Connected Corporations Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a) connected corporation status is tested at the time of dividend receipt
2004-02-06 29 January 2004 External T.I. 2003-0046151E5 F - RPE - Dissolution d'une société en commandite Income Tax Act - Section 32.1 - Subsection 32.1(1) - Paragraph 32.1(1)(a) no s. 32.1(1)(a) deduction for remaining EBP contributions that are assumed by the partners on partnership dissolution and then paid by them
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(a) application of s. 96(1)(a) presumption means that future deductions that would have been available to the partnership are lost on its dissolution
27 January 2004 External T.I. 2003-0047381E5 F Income Tax Act - Section 146 - Subsection 146(1) - Premium interest received by lender to an RRSP in excess of market rate is not a “premium”
Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) mortgage interest rate must reflect normal commercial practice
27 January 2004 External T.I. 2003-0048891E5 F Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) indirect-use test not applied where income-producing property used as security for a personal-use loan, notwithstanding that the loan equalled the net capital invested in that property
29 January 2004 External T.I. 2003-0049111E5 F - Retenue d'impôt - Régime visé à l'alinéa 6801d) d Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) no source deductions while amounts are deferred under a Reg. 6801(d) plan
2 February 2004 External T.I. 2003-0050241E5 F - Déductibilité des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) effective prohibition on receiving dividends on common shares for 24 months does not preclude interest deductibility
2 February 2004 External T.I. 2003-0052611E5 F - Montant de l'avantage au titre d'un don Income Tax Act - Section 248 - Subsection 248(32) where possible, advantage must be determined on a property-by-property basis
2004-01-30 22 January 2004 External T.I. 2003-0006191E5 F - Frais et montant reçus lors de poursuite Income Tax Act - Section 15 - Subsection 15(1) legal fees paid by corporation in suit by it and its shareholder and his RRSP should be allocated pro rata to them even though the joint incremental costs were minimal
Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (f) damages received for portfolio mismanagement could be proceeds under para. (f)
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) legal fees for successfully suing broker for portfolio mismanagement would reduce the resulting capital gain on receipt of the damages
20 January 2004 External T.I. 2003-0030291E5 F - Bien agricole admissible Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property s. 110.6(19) election prevented access to the pre-1987 rule
7 January 2004 External T.I. 2003-0032501E5 F - Transitional Rules/Allègement transitoire Income Tax Act - Section 112 - Subsection 112(3) CCRA adopts the order of disposition of shares chosen by the taxpayer in applying the grandfathering rules under ss. 112(3) and (3.2)
General Concepts - Transitional Provisions and Policies taxpayer could choose whether a disposition came out of a pool of grandfathered or non-grandfathered shares
19 January 2004 Internal T.I. 2003-0045911I7 F - Camionnette et définition de automobile Income Tax Act - Section 13 - Subsection 13(5) - Paragraph 13(5)(a) when truck is transferred from Class 10.1 to 10, the capital cost as originally limited under s. 13(7)(g) is used for Class 10 purposes
Income Tax Act - Section 248 - Subsection 248(1) - Automobile application of s. 13(5) where extended-cab pick-up truck ceased to be an automobile
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) s. 13(7)(g) limitation was preserved when pick-up truck transferred from Class 10.1 to 10
22 January 2004 Internal T.I. 2003-0047561I7 F - Effet de la délégation puis de la subrogation Income Tax Act - Section 42 payment under covenant of vendor regarding mortgage assumed by purchaser, who defaulted on its assumed obligation, did not generate a s. 42 loss
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) s. 40(2)(g)(ii) did not apply to a debt claim acquired by subrogation against a defaulted debtor since the claim was interest-bearing
28 January 2004 Internal T.I. 2003-0047701I7 F - Télétravail et indien inscrit Other Legislation/Constitution - Federal - Indian Act - Section 87 Indian teleworker exempted re duties performed on Reserve
26 January 2004 External T.I. 2003 - 0047961E5 F - Part IV Circularity Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) waiver of dividend refund does not solve the Pt. IV circularity issue, which is not serious
22 January 2004 Internal T.I. 2003-0052121I7 F - Régime d'éducation permanente - période de rembour Income Tax Act - Section 146.02 - Subsection 146.02(1) - Repayment Period actual date of repayment is not taken into account
22 January 2004 Internal T.I. 2003-0054781I7 F - Reçu de don pour une partie de la valeur Income Tax Act - Section 248 - Subsection 248(32) de minimis threshold policy inapplicable where meal was part of what the ticket to the event was paid for
2004-01-23 14 January 2004 External T.I. 2003-0026011E5 F - Contrat à terme sur indice boursier Income Tax Act - Section 54 - Adjusted Cost Base unrealized gains or losses on stock index futures contracts not included in the ACB of such property
Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) foreign currency "variable margin" accounts held by registered plans with dealers are foreign property
14 January 2004 External T.I. 2003-0029571E5 F - Attribution - société de personnes Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) allocation of farming partnership income did not appear reasonable
Income Tax Act - Section 74.1 - Subsection 74.1(1) s. 74.1(1) would not apply where farming income is transferred to spouse where she subscribed a nominal amount for farm partnership interest
14 January 2004 External T.I. 2003-0046131E5 F - Convention de retraite - dépositaire Income Tax Act - Section 207.6 - Subsection 207.6(2) employer is deemed custodian under s. 207.6(2)
Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement life insurance company can be a custodian
16 January 2004 External T.I. 2003-0046491E5 F - Allocation de retraite Income Tax Act - Section 60 - Paragraph 60(j.1) severance pay was not retiring allowance
14 January 2004 Internal T.I. 2003-0049531I7 F - Valeur de rachat - police d'assurance Income Tax Act - Section 181 - Subsection 181(1) - Long-Term Debt - Paragraph (b) insurance policy is not long-term debt of the insurer, although prepaid premium deposits might be
14 January 2004 Internal T.I. 2004-0054711I7 F - Choix en vertu du paragraphe 12(2.2) Income Tax Act - Section 12 - Subsection 12(2.2) s. 12(1)(x) assistance included in Year 1 income, then reversed by reassessment when s. 12(2.2) election is made in Year 2 return respecting the related Year 2 expenditure
2004-01-16 9 January 2004 Internal T.I. 2003-0031601I7 F - Air Miles :employés/employeurs Income Tax Act - Section 69 - Subsection 69(4) s. 69(4) applicable where corporation acquires property with its Air Miles and distributes the property to a shareholder (but not in the case of an arm’s length employee)
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) business air miles assumed to be used before personal air miles
8 January 2004 External T.I. 2003-0040575 F - Associated Corporations Income Tax Act - Section 256 - Subsection 256(6) - Paragraph 256(6)(a) cessation of lender’s right to shares on occurrence of reasonably-expected event must be expressly stated in loan terms
Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) lender’s right to acquire 99% of shares in event of insolvency engaged s. 256(1.4)(a)
Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(c) rule in s. 256(1.2)(c) references de jure control, not de facto control
9 January 2004 External T.I. 2003-0047341E5 F - Coût indiqué - Biens étrangers Income Tax Act - Section 54 - Adjusted Cost Base distribution of shares out of MFT and exchange for new MFT units would reset the ACB/ cost amount

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