Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-03-05 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
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 - 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

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