Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-11-14 6 November 2003 External T.I. 2003-0039525 F - Canadian Renewable & Conservation Expenses 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
20 October 2001 External T.I. 2003-0007015 F - RESSOURCE INTERMEDIAIRE Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) amounts received for accommodating disabled individuals in the taxpayer’s home were exempted
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) amounts received for accommodating disabled individuals in the taxpayer’s home would not engage s. 45(1)(c) if they were exempted under s. 81(1)(h)
23 October 2003 External T.I. 2003-0017935 F - BIEN AGRICOLE ADMISSIBLE Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property rebate of municipal taxes reduces the farming expense rather than constituting gross revenue from farming
Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue rebate of municipal taxes reduced that business expense rather than constituting gross revenue
Income Tax Act - Section 9 - Expense Reimbursement reimbursement of business expense reduces the expense rather than being included in gross revenue
15 October 2003 External T.I. 2003-0030905 F - Associated Corporations and 129(6) Income Tax Act - Section 256 - Subsection 256(2) s. 256(2) election does not affect the operation of s. 129(6)
29 October 2003 External T.I. 2003-0033435 F - CREDIT POUR INTERET SUR PRETS ETUDIANTS Income Tax Act - Section 118.62 exclusion for amount paid in satisfaction of a judgment applies to interest that was paid during the course of the legal proceedings resulting in the judgment
29 October 2003 External T.I. 2003-0037435 F - REMBOURSEMENT DE PAIMENTS D'UN REEE Income Tax Act - Section 146.1 - Subsection 146.1(2) subscriber can assign or pledge the right to receive repayments of payments
2003-10-24 15 October 2003 External T.I. 2003-0014535 F - FRAIS DE GARDE D'ENFANTS Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense - Paragraph (d) fees for daycare at day sports camp could qualify
20 October 2003 External T.I. 2003-0014615 F - allocation non-imposable Income Tax Act - Section 6 - Subsection 6(16) - Paragraph 6(16)(a) per-kilometre rates published by Finance could be used for reasonableness purposes
16 October 2003 Internal T.I. 2003-0032537 F - EQUIVALENT POUR PERSONNE Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) young child could not claim credit for mother
10 October 2003 Roundtable, 2003-0035385 F - POLICE D'ASSURANCE CONTRE MALADIE GRAVE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose premiums on critical illness policy are non-deductible to the corporate policyholder even if it is the beneficiary
Income Tax Act - Section 15 - Subsection 15(1) corporate payment of premiums on critical illness policy for its sole shareholder generated taxable benefit
10 October 2003 Roundtable, 2003-0035645 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) Ludco and Singleton accepted/ description of how and why cash damming works
Income Tax Act - Section 16 - Subsection 16(1) interest imputed on a non-interest-bearing note issued at a discount consists of simple interest (annually deductible) and compound interest (deductible only at maturity)
10 October 2003 Roundtable, 2003-0035655 F - CBR D'UNE POLICE D'ASSURANCE TRANSFEREE Income Tax Act - Section 148 - Subsection 148(9) - Adjusted Cost Basis ACB addition, for gratuitous transfer of corporation’s life insurance policy under s. 148(7) to the insured shareholder/employee, equals excess of policy ACB over its CSV
Income Tax Act - Section 148 - Subsection 148(7) consequences of gratuitous transfer of corporation’s life insurance policy under s. 148(7) to the insured shareholder/employee
10 October 2003 Roundtable, 2003-0035665 F - TRANSFER D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 148 - Subsection 148(7) transfer to shareholder at policy’s FMV is not a “distribution”
10 October 2003 Roundtable, 2003-0035675 F - EVALUATION D'UNE POLICE D'ASSURANCE-VIE Income Tax Act - Section 70 - Subsection 70(5.3) unpaid policy loan to corporation is to be deducted in determining shares’ FMV if the accords with valuation principles
10 October 2003 Roundtable, 2003-0035685 F - DEDUCTION INTERETS MONTANT RAISON Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) reasonableness of interest rate assessed in light of comparable market rates and issue premiums
10 October 2003 Roundtable, 2003-0036865 F - TRANSFER DE POLICE D'ASSURANCE Income Tax Act - Section 15 - Subsection 15(1) benefit to shareholder on gratuitous transfer to it of critical illness policy entitled to refund of premiums on maturity

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