Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2004-01-09 9 December 2003 External T.I. 2003-0032585 - Immeuble détenu par une succession Income Tax Act - Section 107 - Subsection 107(2) s. 107(2) rollover unavailable to an income beneficiary
15 December 2003 External T.I. 2003-0182855 - Fiducie pour Loi au Quebec Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(e) meaning of “a right as a beneficiary in a trust” is found in s. 248(25)
General Concepts - Ownership sole beneficiary of Quebec trust is the beneficial owner of its property
Income Tax Act - Section 73 - Subsection 73(1.02) - Paragraph 73(1.02)(b) - Subparagraph 73(1.02)(b)(ii) no change in beneficial ownership on transfer of property to self-benefit Quebec trust
Income Tax Act - Section 75 - Subsection 75(2) policy is for s. 75(2) application not to result in double taxation
2004-01-02 22 December 2003 External T.I. 2003-0000125 F - TITRE DE CREANCE INDEXE Income Tax Regulations - Regulation 7001 - Subsection 7001(1) detailed illustration
Income Tax Act - Section 248 - Subsection 248(1) - Indexed Debt Obligation stripped indexed coupons were indexed debt obligations but would not give rise to excluded payments
Income Tax Regulations - Regulation 7001 - Subsection 7001(7) - Excluded Payment stripped indexed coupons did not give rise to excluded payments because no single fixed rate
Income Tax Regulations - Regulation 201 - Subsection 201(4.1) reporting of inflation adjustments on indexed bonds
Income Tax Act - Section 20 - Subsection 20(14) application of s. 20(14) to indexed debt obligation
11 December 2003 External T.I. 2003-0015975 F - calcul du gain/perte sur disposition Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) portion of share sales proceeds required under a Bankruptcy Act proposal to be paid to the unsecured creditors, not a disposition expense
10 December 2003 External T.I. 2003-0023335 F - COUT D'UN BIEN REMIS EN RECOMPENSE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) $500 gift policy applies where parent incurs the cost (which must include any customs and shipping costs)
16 December 2003 External T.I. 2003-0027245 F - MCIA-ACQUIS. D'UNE PERSONNE LIEE Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable A - Variable A.1 subsequent arm’s length acquisition does not vitiate application of A.1
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)

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