Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-01-02 18 December 2003 Internal T.I. 2003-0045227 F - FRAIS JURIDIQUES-PENSION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees legal fees in relation to determining revised support entitlements were non-deductible
10 December 2003 Internal T.I. 2003-0047467 F - DESENREGISTREMENT D'UN REER Income Tax Act - Section 146 - Subsection 146(12) - Paragraph 146(12)(b) appraiser not required, but issuer must make reasonable efforts to determine FMV of shares of illiquid co-op
Income Tax Regulations - Regulation 103 - Subsection 103(6) - Paragraph 106(6)(d) no source deductions required where property is distributed in year subsequent to RRSP deregistration
22 December 2003 External T.I. 2003-0053005 F - transfert d'un reer a un ferr Income Tax Act - Section 146 - Subsection 146(16) - Paragraph 146(16)(b) shares may not be transferred from maturing RRSP to RRIF if they will not provide the annuity to make the minimum payments
2003-12-05 21 November 2003 External T.I. 2003-0010195 F - Etablissement Stable Income Tax Regulations - Regulation 400 - Subsection 400(2) - Paragraph 400(2)(e) use of substantial equipment in a province for even one day triggers a PE
29 September 2003 External T.I. 2003-0013435 F - Pension Belge Treaties - Income Tax Conventions - Article 18 Belgian National Pensions Office was a Belgian government instrumentality for purposes of the former Art. 18(2) exemption
14 November 2003 External T.I. 2003-0013445 F - Application de 94(1) et 128.1(1) Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(a) application of s. 94 subject to prior to application of s. 128.1(a)(a)
21 November 2003 External T.I. 2003-0023925 F - Distribution non-admissible au sens de 86.1 Income Tax Act - Section 86.1 - Subsection 86.1(2) - Paragraph 86.1(2)(b) distribution did not qualify because distributed shares were not pre-owned by Mexican distributor
Income Tax Act - Section 52 - Subsection 52(2) distributed shares had ACB equal to the s. 90 inclusion of their FMV
28 November 2003 External T.I. 2003-0046025 F - CONVENTION DE RETRAITE DEDUCTIONS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(r) s. 20(1)(r) deduction is limited by s. 67
2003-11-28 19 November 2003 Internal T.I. 2003-0047687 F - Interest Calculation T/P Adjustment RQST Income Tax Act - Section 161 - Subsection 161(7) - Paragraph 161(7)(a) - Subparagraph 161(7)(a)(iv) substitution of NCL carrybacks with CCA claims for nil assessment taxation years does not generate s. 161(1) interest
Income Tax Act - Section 161 - Subsection 161(1) substitution of NCL carrybacks with CCA claims for nil assessment taxation years does not generate s. 161(1) interest
18 November 2003 External T.I. 2003-0181195 F - REGLEMENT STRUCTURE Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(d) CCRA position on exemption of structured settlements (as described) extends to court-ordered personal injury payments
Income Tax Act - Section 3 - Paragraph 3(a) summary of CCRA position on structured settlements
2003-11-21 12 November 2003 External T.I. 2003-0020275 F - RECOMPENSES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) $500 gift policy might apply to points awards if redeemable for very limited range of goods/ policy does not apply to sales awards etc.
13 November 2003 Internal T.I. 2003-0039637 F - perte sur creance et frais Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(a) capital loss under s. 50(1)(a) if deferred proceeds became uncollectible
Income Tax Act - Section 54 - Adjusted Cost Base legal fees to recover deferred proceeds of share disposition do not increase the shares’ ACB
2003-11-14 5 November 2003 Internal T.I. 2003-0036737 F - BOURSES D'ETUDES Income Tax Act - Section 56 - Subsection 56(3) $3,000 exemption unavailable where education tax credit not available in the same taxation year
30 October 2003 External T.I. 2003-0037075 F - Associated Corporation and 129(6) Income Tax Act - Section 256 - Subsection 256(2) corporations associated through s. 256(2) continued as associated for s. 129(6) purposes where the 3rd corporation filed s. 256(2) election not to be associated with either
6 November 2003 External T.I. 2003-0039525 F - Canadian Renewable & Conservation Expenses Income Tax Regulations - Regulation 1219 - Subsection 1219(1) CCA is not an outlay or expense, and cannot qualify as CRCE
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) CCA is not an expense incurred
Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) computers used in operating landfill biogas site might be Class 10 property, and applications software would be Class 43.1 or Class 12 property/ below-surface pipes would not qualify
Income Tax Regulations - Schedules - Schedule II - Class 12 - Paragraph 12(o) applications software used by computers for operation of biogas landfill site would be Class 43.1 or Class 12 property
6 November 2003 External T.I. 2003-0041355 F - Subsections 110.(19) and 85(1) Income Tax Act - Section 85 - Subsection 85(1) s. 85(1) rollover for stepped-up s. 110.6(19) ACB
5 November 2003 Internal T.I. 2003-0043277 F - Benefit-Use of Automobiles Income Tax Act - Section 246 - Subsection 246(1) - Paragraph 246(1)(a) s. 246(1)(a) application re mother’s use of a car of Opco controlled by her son’s Holdco to her rather than son turned on whether her minority Holdco had significant influence over Opco
Income Tax Act - Section 15 - Subsection 15(5) application of s. 15(5) to shareholder’s use of company automobile
Income Tax Act - Section 10 - Subsection 10(1) automobiles in car dealer inventory used for employee’s personal use remained in inventory, cf. if converted primarily to personal use of shareholder (which would not be a disposition)
Income Tax Act - Section 9 - Computation of Profit conversion of automobile in car inventory to personal use of CEO would not entail its deemed disposition nor would the conversion of car inventory to personal use of shareholders
3 November 2003 Internal T.I. 2003-0044817 F - Copies of Electronic Documents Income Tax Act - Section 231.5 - Subsection 231.5(1) CCRA audit right to take electronic copies and to print out
Income Tax Act - Section 231.1 - Subsection 231.1(1) CCRA auditors may take electronic copies of taxpayer records
5 November 2003 External T.I. 2003-0045085 F - Section 159-Payments on Behalf of Others159(2) Income Tax Act - Section 159 - Subsection 159(2) trustee in bankruptcy must be acting in that capacity for that exception to apply
2003-11-07 27 October 2003 Internal T.I. 2003-0022887 F - CII-PECHEURS Income Tax Act - Section 127 - Subsection 127(9) - Specified Percentage - Paragraph (a) - Subparagraph (a)(iii) Gaspé Peninsula includes St. Lawrence
29 October 2003 External T.I. 2003-0026355 F - ECHANGE D'ACTIONS Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(i) s. 110.6(14)(f)(i) applies to shares issued as part consideration for shares of a different class transferred to the corporation on a dirty s. 85 exchange
30 October 2003 External T.I. 2003-0037465 F - Subsections 40(3.3) & 40(3.4) Income Tax Act - Section 40 - Subsection 40(3.4) non-application of s. 40(3.4) where taxpayer acquires then immediately disposes of an additional block/ application of formula where it partially dips into existing block
5 November 2003 Internal T.I. 2003-0037977 F - FRAIS POUR ANNULER UNE OFFRE D'ACHAT Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) legal fees incurred to defend a repudiation of a purchase contract might be a disposition expense (of the rights to purchase)
31 October 2003 Internal T.I. 2003-0040997 F - CHANTIER PARTICULIER REPAS CONJOINT Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) s. 6(6)(a) does not extend to covering meal expenses of visiting spouses
4 November 2003 External T.I. 2003-0042295 F - CONVENTION DE RETRAITE REVENU D'INTERET Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax - Paragraph (b) requirement to include interest income under s. 12 in computing refundable tax at end of year
31 October 2003 External T.I. 2003-0045795 F - DEDOMMAGEMENT POUR PERTE DE REVENU Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) Quebec government compensation to pension plan members for cessation of employer contributions was not itself pension or other income
Income Tax Act - Section 3 - Paragraph 3(a) lump sum government compensation for loss of employer pension plan contributions was not income from a source
2003-10-31 29 October 2003 External T.I. 2003-0006505 F - REGIME D'ASSURANCE SALAIRE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) criteria for determining whether there are separate plans

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