Principal Issues: Will subsection 74.4(2) apply to both scenarios presented?
Position: No in the first scenario. May technically apply in the second scenario depending on the facts and circumstances.
Reasons: See below.
XXXXXXXXXX 2015-060156
Mr. Séguin
December 11, 2015
Dear Sir,
Subject: Subsection 74.4(2)
Principal Issues: Are funds accumulated in AgrInvest and Agri-Québec accounts eligible properties for the definition "share of the capital stock of a family farm or fishing corporation" for the capital gains deduction?
Position: Not applicable because their FMV is deemed to be nil by ss. 110.6(1.1).
Reasons: Application of 110.6(1.1).
XXXXXXXXXX 2015-058356
J. Lacharité, CPA, CGA
June 30, 2016
Dear Sir,
Subject: Capital gains deduction - contamination
Principal Issues: Will subsection 74.4(2) apply in the scenarios described?
Position: No in the first scenario. Probably in the second scenario. No in the third scenario but no comments on subsection 245(2).
Reasons: See below.
XXXXXXXXXX 2015-061340
M. Séguin
December 8, 2015
Dear Sir,
Subject: Paragraph 74.4(2)
Principal Issues: 1. Whether a severance payment to an employee who performed services on exploration projects would be part of the Canadian exploration expenses of a taxpayer.
2. Whether a severance payment to an employee who performed services on exploration projects would be part of the Canadian exploration and development overhead expenses of a taxpayer.
Position: 1. No. 2. No.
Principal Issues: Several questions regarding the medical expense tax credit.
Position: See document.
Reasons: See document.
XXXXXXXXXX 2014-052985
Sophie Lambert, CPA, CMA, DESS. FISC.
June 8, 2015
Dear Sir,
Subject: Fees paid to a nursing home
Principal Issues: What is the tax treatment of some sponsorship expenses made to a golf club?
Position: None. General comments.
Reasons: Question of fact
XXXXXXXXXX I. Landry, M. Fisc.
2016-063560
May 13, 2016
Dear Sir,
Subject: Sponsorship Expenses
This letter is in response to your email of March 3, 2016 in which you inquired as to the tax treatment of certain sponsorship expenses incurred in favour of a golf club.
Principal Issues: 1. Whether subparagraph 53(2)(c)(v) would apply to the loans in the situation described in the letter 2. Whether the limited partner would have a gain under subsection 40(3.1) in the situation described in the letter 3. Whether subsection 40(3.13) would apply in the situation described in the letter
Position: 1. Possibly, depending of the facts. 2. Possibly, depending on the facts. 3. In general no.
Principal Issues:
1) Do the taxpayer's activities qualify as a source of income?
2) If the taxpayer is carrying on a business, are the allowable deductible expenses limited to the business income?
3) If there is a business, are all vehicle expenses deductible?
4) Are the travel expenses regarded as personal expenses?
5) If the activity qualifies as a hobby:
Principal Issues: Prior to the sale of the shares of a corporation to an arm’s length purchaser, in a situation where paragraph 7(1)(b) applies, whether the arm’s length purchaser who also wants to purchase the stock options of an employee can make an election under subsection 110(1.1).
Position: No.
