Principal Issues: Amounts to be included in 88(1)(d)(i)(B) - deferred income taxes

Position: Not to be included

Reasons: No legal obligation to pay an amount

XXXXXXXXXX 2015-061777
M. Séguin

January 28, 2016

Dear Madam,

Subject: Paragraph 88(1)(d)

This is in response to your email of November 11, 2015 in which you requested our views regarding the application of paragraph 88(1)(d) of the Income Tax Act (hereinafter, the “Act").

Principal Issues: The question is whether a debt was acquired by the taxpayer for the purpose of gaining or producing income from a business or property.

Position: No

Reasons: The taxpayers have not demonstrated that the debts were acquired for the purpose of gaining or producing income from a business or property. It is our view that when F1 and F2 made the debts to the company, they did not intend to draw an additional income from those debts or to protect a source of income for themselves.

Principal Issues: Is the parent who is not residing in Canada with his/her spouse considered a supporting person for the purpose of claiming child care expenses?

Position: Question of fact

Reasons: See the letter

XXXXXXXXXX 2015-060371

Isabelle Brulotte, CPA, CA

May 17, 2016

Dear Madam,

Re: Person claiming child care expenses for the T778

Principal Issues: 1- Whether the position stated in document 2001-0113237 is still valid following the change in position stated in document 2013-0490901I7? 2- Can a taxpayer, who has previously considered the Tax Credit for Home-Support Services for Seniors (CIMAD) as a reimbursement for the purpose of medical expense tax credit, correct their income tax return for the 10 previous years?

Principal Issues: What is the CRA's position regarding the notion of "volunteer firefighter" for the purposes of subsection 81(4) and section 118.06 of the Act following the judgment issued by the Cour du Québec in the case Bourgeois c. Agence du revenu du Québec?

Position: Position taken in document 2012-0444461E5 is maintained.

Reasons: See below.

XXXXXXXXXX I. Landry, M. Fisc.
2015-060267

December 15, 2015

Dear Madam,

Principal Issues: Is the CRA position in paragraph 36 of IT bulletin IT-522R still valid?

Position: Yes

Reasons: The CRA's position in paragraph 34(a) of IT bulletin IT--522R is still valid.

XXXXXXXXXX 2015-056416

Isabelle Brulotte, CPA, CA

April 11, 2016

Subject: Validity of CRA position in paragraph 36 of Interpretation Bulletin IT-522R

Dear Sir,

Principal Issues: In a particular situation, a trust (hereinafter "Trust") was established under the Civil Code of Quebec. Trust is a discretionary trust. An individual (hereinafter "Mr. X") and a corporation (hereinafter "Holdco"), all the shares of which are held by Mr. X, are both income and capital beneficiaries of Trust. Trust holds all of the issued and outstanding shares of the capital stock of a corporation (hereinafter "Opco") which is a TCC and a CCPC.