Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-04-23 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)
Income Tax Act - Section 80 - Subsection 80(1) - Excluded Obligation loan included in income under s. 15(2) was excluded obligation re its subsequent forgiveness
15 March 2004 Internal T.I. 2004-0058591I7 F - Projet agricole au sens de 122.3(1)b)(i)(B) Income Tax Act - Section 248 - Subsection 248(1) - Farming foreign woodlot operation was farming
2004-03-19 16 March 2004 External T.I. 2003-0050041E5 F - Fin de société de personnes et 98(5) Income Tax Act - Section 98 - Subsection 98(5) s. 98(5) can apply if all the partners transfer their interests to a corporation at daily, or perhaps, split-second, intervals
2 March 2004 Internal T.I. 2004-0061041I7 F - Safe Income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) Kruco decision followed
2004-03-12 10 March 2004 External T.I. 2002-0160751E5 F - REÉR au décès: rente pour un bénéficiaire mineur Income Tax Act - Section 60 - Paragraph 60(l) - Subparagraph 60(l)(ii) - Clause 60(l)(ii)(B) s. 60(l)(ii)(B) can apply where the minor child is the sole living testamentary beneficiary but, on the child's death, the residue passes to other beneficiaries
10 March 2004 External T.I. 2002-0164661E5 F - REÉR au décès: rente pour un bénéficiaire mineur Income Tax Act - Section 60 - Paragraph 60(l) - Subparagraph 60(l)(ii) - Clause 60(l)(ii)(B) child is the only one, prior to the child’s death, to have a beneficial interest in the amounts payable under the annuity
Income Tax Act - Section 146 - Subsection 146(8.1) election can be executed by executor qua executor and qua legal representative of the minor beneficiary, if so authorized
9 March 2004 External T.I. 2003-0046961E5 F - Frais payés à une famille d'accueil Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense - Paragraph (a) occasional short stays with the parents do not qualify as residing with them
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(b.1) fee paid for care by foster family for disabled child could qualify under s.118.2(2)(b.1
Income Tax Act - Section 68 break-out of care component in the invoice for the attendant’s fee would permit CRA to recognize that component
4 March 2004 External T.I. 2003-0049831E5 F - Allocation pour l'achat d'ordinateur Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement of internet and modem charges not taxable where internet access is essential to performing employment duties
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) monthly home computer allowance was taxable
5 March 2004 External T.I. 2004-0060831E5 F - Congé à traitement différé Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(i) no SDA impact if, after taking leave, an employee responds to early retirement incentives
8 March 2004 External T.I. 2004-0063841E5 F - placement admissible au titre des REER Income Tax Act - Section 262 OTC Bulletin Board stocks not qualified investments (if not of Canadian public corporations)
2004-03-05 1 March 2004 External T.I. 2003-0017861E5 F - Bien agricole admissible Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property - Paragraph (a) - Subparagraph (a)(iii) farm satisfied the qualified farm property definition on the death of an individual who, with his father, had used it in farming
Income Tax Act - Section 159 - Subsection 159(5) general overview/ election unavailable where s. 70(9) applies
25 February 2004 External T.I. 2003-0042461E5 F - Invalidité d'un actionnaire/admin./employé Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose premiums paid by corporation on disability policy on its principal employee are non-deductible
Income Tax Act - Section 3 - Paragraph 3(a) disability benefits received by corporation to fund continuing salary-equivalent payments to its chief employee are not income
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) taxable continued payment of salary-equivalent payments to disabled employee, but no taxable benefit from employer’s previous payment of premiums on funding disability policy
2 March 2004 External T.I. 2003-0042631E5 F - Déductibilité de dépenses Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose life interest in condo to surviving spouse precluded deductibility of condo expenses
26 February 2004 External T.I. 2003-0045471E5 F - Prêt à un actionnaire Income Tax Act - Section 15 - Subsection 15(2.4) - Paragraph 15(2.4)(e) housing loan not excluded if comparable employees would not have received it
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”

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