Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-03-05 26 February 2004 External T.I. 2003-0045471E5 F - Prêt à un actionnaire Income Tax Act - Section 15 - Subsection 15(1.21) inclusion of home-acquisition loan under s. 15(2) precluded a further inclusion under s. 15(1.21)
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense forgiven amount not deductible in computing income
2 March 2004 Internal T.I. 2003-0045921I7 F - 118(5) - impact d'une clause rétroactive Income Tax Act - Section 118 - Subsection 118(5) homologated order with effect of judgment that retroactively eliminated Monsieur’s support obligation re one of his children did not retroactively eliminate the s. 118(5) prohibition
General Concepts - Effective Date CRA would not apply a retroactive judgment to the affected prior period because it was inconsistent with the actual understanding at the time
23 February 2004 External T.I. 2003-0050641E5 F - Fiducie Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts no particular mortality table required re donation of a residual interest in a trust to a public charitable foundation
23 February 2004 External T.I. 2003-0051371E5 F - Déduction des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) non-deductible personal residence interest could be converted to deductible interest through sale of rental property to spouse for money borrowed by her
10 February 2004 Income Tax Severed Letter 2003-0052621A11 F - Régime de pension étranger Treaties - Income Tax Conventions - Article 18 French social security payments based on years of service in self-employment were not exempted a having been “paid in respect of past employment”
16 February 2004 External T.I. 2003-0054091E5 F - Rollover for Contractors Income Tax Act - Section 85 - Subsection 85(1.1) - Paragraph 85(1.1)(a) construction lien holdbacks are eligible property that can be transferred at a nominal agreed amount
Income Tax Act - Section 56 - Subsection 56(4) s. 56(4) not applied where construction lien holdbacks are transferred on s. 85(1) rollover basis to transferee, which includes them when they become receivable
1 March 2004 External T.I. 2003-0060381E5 F - Police d'assurance exonérée Income Tax Act - Section 148 - Subsection 148(9) - Proceeds of the Disposition proceeds must be recognized on termination of policy irrespective of whether an exempt policy
23 February 2004 External T.I. 2004-0057051E5 F - RAP - Personne séparée Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) separated spouse’s ownership is relevant
1 March 2004 External T.I. 2004-0059151E5 F - Déduction des intérêts Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest generally deductible on money borrowed to acquire preferred shares with a dividend entitlement
3 March 2004 Internal T.I. 2004-0061781I7 F - Engagement de non-concurrence Income Tax Act - Section 9 - Exempt Receipts/Business Manrell inapplicable where recipient of non-compete carried on the related business
2004-02-27 20 February 2004 External T.I. 2003-0035361E5 F - Chantier particulier - travail temporaire Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) single 3-year term contract could be work of a temporary nature
30 January 2004 Internal T.I. 2003-0037191I7 F - Fabrication /sous-traitants/frais de gestion Income Tax Regulations - Regulation 5202 - Cost of Labour - Paragraph (a) cost of labour included amounts paid to a sister company that paid the employees on behalf of the manufacturer
Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) s. 153(1) applicable to salaries paid as agent
Income Tax Regulations - Regulation 5202 - Cost of Labour - Paragraph (b) - Subparagraph (b)(iii) tasks performed by subcontractors were not normally performed by employees
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose partial disallowance of salaries of taxpayer where it was not fully reimbursed by the recipient of their services
24 February 2004 External T.I. 2003-0041121E5 F - Avantages imposables-installations récréatives Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) making employer’s resort recreational facilities available to all employees not a taxable benefit
6 February 2004 External T.I. 2003-0044021E5 F - Les règles d'attribution et les REER Income Tax Act - Section 74.1 - Subsection 74.1(1) RRSP withdrawal of property funded with contribution by the annuitant's spouse is income to the spouse under s. 74.1(1)
23 February 2004 External T.I. 2003-0048121E5 F - Paiement reçu - annulation d'un contrat Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange surrogatum principle applied to FX hedging termination payment
24 February 2004 External T.I. 2003-0049351E5 F - Dommages moraux Income Tax Act - Section 3 - Paragraph 3(a) damages received for pain and suffering or loss of amenities of life are non-taxable
6 April 2003 External T.I. 2003-0054461E5 F - Traitement fiscal d'un cadeau Income Tax Act - Section 9 - Nature of Income “gift” may be business income to the recipient
2004-02-20 13 February 2004 External T.I. 2003-0027361E5 F - Déductibilité des intérêts -TPS et TVQ Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose interest on assessments for failure to collect or remit GST that was collectible in respect of a business or property, is deductible
17 February 2004 Internal T.I. 2003-0046981I7 F - Paragraphe 98(5) de la Loi Income Tax Act - Section 98 - Subsection 98(5) s. 98(5) inapplicable on an amalgamation of the members
6 February 2004 Internal T.I. 2003-0052831I7 F - Application of subparagraph 84.1(2)(a.1)(ii) Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) no change to the ACB grind under s. 84.1(2)(a.1) if a loss is subsequently proposed to be carried back to reduce the amount that was claimed under s. 110.6(2.1)
2004-02-13 9 February 2004 External T.I. 2003-0004401E5 F - Bien agricole admissible - fiducie Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property 2 successive corporations could together satisfy the 24-month test in s. (a)(vi)(B) of qualified farm property
Income Tax Act - Section 104 - Subsection 104(21.2) sufficient for the disposed-of property to be qualified farm property to the disposing trust, and need not be qualified farm property to the beneficiary
27 January 2004 External T.I. 2003-0006025 F - Roulement d'une partie d'un bien Income Tax Act - Section 248 - Subsection 248(1) - Property s. 70(6) can apply to a part interest in a single real property
Income Tax Act - Section 70 - Subsection 70(6) rollover applicable to part interest transferred to surviving spouse
29 January 2004 External T.I. 2003-0040631E5 F - Rente de bienfaisance : contrat ou fiducie Income Tax Act - Section 75 - Subsection 75(2) amounts included in income of donor under charitable annuity arrangement under s. 75(2) is not also included under s. 56(1)(d)
6 February 2004 External T.I. 2003-0049461E5 F - Parité salariale - Pension rétroactive Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) retroactive pay-equity increase to the pension receipts of the deceased were s. 56(1)(a)(i) inclusions to the receiving estate
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

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