Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2026-01-14 9 October 2025 APFF Roundtable Q. 7, 2025-1071491C6 F - Application de l’article 80 L.I.R. et réduction du prix de base rajusté Income Tax Act - Section 47 - Subsection 47(1) the amount of capital gain realized on the partial repayment of two advances with low and full basis turned on whether they were separate properties and how the debtor applied the repayment
General Concepts - Payment & Receipt Quebec debtor has the right to determine which advance a repayment should be applied to
9 October 2025 APFF Roundtable Q. 8, 2025-1071501C6 - Application des nouvelles positions de l’ARC concernant le paragraphe 55(2) L.I.R. Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) most (e.g., calendar-year) corporations should continue to use the old (pre-Update) CRA positions in computing safe income for 2023 and prior taxation years
9 October 2025 APFF Roundtable Q. 9, 2025-1071511C6 F - Le sous-alinéa 55(5)e)(i) L.I.R. Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(i) QSBCS exception to s. 55(5)(e)(i) applied to the repurchase of QSBCS held by a sibling’s Holdco simultaneously with the repurchase of the other sibling’s Holdco’s non-QSBCS
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (a) must be direct ownership of a share of the corp by an individual or a related partnership
9 October 2025 APFF Roundtable Q. 10, 2025-1071591C6 - Application du paragraphe 220(4.5) L.I.R. à l’impôt minimum de remplacement causé par la disposition réputée prévue à l’alinéa 128.1(4)b) L.I.R.SECTION 127.5; 127.51; 127.52; 128.1(4)(b); 220(4.5) Income Tax Act - Section 220 - Subsection 220(4.5) - Paragraph 220(4.5)(a) - Subparagraph 220(4.5)(a)(i) departure tax deferral under s. 220(4.5)(a)(i) is available for AMT payable because of s. 128.1(4)(b)
Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) gain under s. 128.1(4)(b) can produce AMT
9 October 2025 APFF Roundtable Q. 11, 2025-1071521C6 - Validity of a CDA election Income Tax Act - Section 83 - Subsection 83(2) a valid s. 83(2) election and the accompanying resolution must specify a dollar amount
9 October 2025 APFF Roundtable Q. 12, 2025-1071531C6 F - Confirmer le traitement fiscal des Simple Agreement for Future Equity Income Tax Act - Section 51 - Subsection 51(1) SAFE likely is not a share, or a bond, debenture or note
Income Tax Act - Section 49.1 conversion of a SAFE into equity might not be a disposition by virtue of s. 49.1
Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract conditional contractual obligation to issue shares likely was not a bond, debenture or note
9 October 2025 APFF Roundtable Q. 13, 2025-1071541C6 - Irrégularité dans le calcul des pénalités lorsqu’un choix doit être produit Income Tax Act - Section 85 - Subsection 85(8) there is only one penalty month if an election due on February 28 was filed on or before March 31 of the following month
Statutory Interpretation - Interpretation Act - Section 28 February 28 to March 31 is one month
9 October 2025 APFF Roundtable Q. 14, 2025-1071601C6 F - Actif utilisé principalement dans une entreprise exploitée activement (« EEA ») Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) - Subparagraph (c)(i) the equivalence of cash held to future years’ expenses is insufficient to establish that such cash was used in the business
9 October 2025 APFF Roundtable Q. 15, 2025-1071571C6 F - Transfert intergénérationnel d’entreprise et transfert de la gestion Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(g) - Subparagraph 84.1(2.31)(g)(i) s. 84.1(2.31)(g)(i) accommodates a transfer of management (including part management) by a parent to both a child and a 3rd party
9 October 2025 APFF Financial Planning Roundtable Q. 8, 2025-1071561C6 F - Revente précipitée et date de disposition Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(b) deferring the date of disposition of a housing unit to well after the sale date and 366 days after the acquisition date would avoid the flipped property rules
9 October 2025 APFF Financial Planning Roundtable Q. 9, 2025-1071451C6 F - Règle sur les reventes précipitées et location à court terme Income Tax Act - Section 67.7 - Subsection 67.7(1) - Residential Property a room or a basement can qualify as a “residential property”
Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(a) “housing unit” is restricted to a single housing unit
2026-01-07 25 August 2025 Internal T.I. 2023-0974491I7 F - Qualification of Shares as "Prescribed Shares" Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(a) - Subparagraph 6204(1)(a)(iii) where two share classes are inter-convertible, a capped liquidation entitlement for one class will cause both to be non-prescribed shares under Reg. 6204(1)(a)(iii)
2025-12-10 12 November 2025 External T.I. 2022-0923141E5 F - Allocation raisonnable pour frais de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) a meal allowance based solely on kilometerage is not reasonable
2025-11-26 3 June 2025 External T.I. 2022-0925091E5 F - Élément d’actif - Immeuble détenu en copropriété par indivision Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation - Paragraph (a) an undivided interest in a building can satisfy the asset use test in the SBC and QSBCS definitions
2025-11-19 10 September 2025 External T.I. 2025-1070171E5 F - Disposition of a right to receive bitcoins Income Tax Act - Section 9 - Capital Gain vs. Profit - Cryptocurrency lack of income on bitcoins suggested that they might be acquired on income account
Income Tax Act - Section 54 - Adjusted Cost Base property acquired on income account does not have an ACB
2025-09-17 19 June 2025 External T.I. 2024-1045841E5 F - Application of subsection 152(4.2) of the Act at death Income Tax Act - Section 152 - Subsection 152(4.2) the heir of a deceased employee who became entitled to a tax-free pay adjustment should count the s. 152(4.2) 10-year claim period from the year of payment
Income Tax Act - Section 5 - Subsection 5(1) retroactive pay adjustment that was agreed to after the employee’s death was non-taxable
Income Tax Act - Section 3 - Paragraph 3(a) retroactive pay adjustment that arose after death was tax-free
2025 Ruling 2025-1052291R3 F - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) post-mortem pipeline entailing issuance of 8 quarterly notes by Newco 12 months after its acquisition of the stepped-up shares
Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital transactions contemplated the distribution of all the PUC of common shares
2025-09-03 3 June 2025 External T.I. 2025-1064821E5 F - Related persons Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(b) - Subparagraph 251(2)(b)(iii) repeated application of ss. 251(2)(b)(ii) and (iii) to relate two corporations
2025-08-27 4 July 2025 Internal T.I. 2025-1054791I7 F - Provincial allocation - CEWS Income Tax Regulations - Regulation 402 - Subsection 402(3) CEWS is excluded from gross revenue and wages for Reg. 402(3) purposes
Income Tax Regulations - Regulation 402 - Subsection 402(3) gross revenue does not include government assistance re expenses
2025-08-06 6 May 2025 External T.I. 2024-1010641E5 F - Relevant Group Entity Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(c) - Subparagraph 84.1(2.31)(c)(iii) the retention of Opco’s real estate in the parent’s Realtyco after a sale of Opco to the child’s Holdco does not render Realtyco a relevant group entity
2025-07-30 2024 Ruling 2024-1027631R3 F - Post-mortem planning - Pipeline Income Tax Act - Section 84 - Subsection 84(2) classical 24-month pipeline transaction for an investments company whose portfolio had performed poorly
1 May 2025 External T.I. 2024-1030911E5 F - Scholarships to non-residents to study French Income Tax Act - Section 118.94 scholarships received by non-resident temporary workers for French language training would be included in their worldwide income s. 118.94 computation purposes
Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(e) - Subparagraph 115(2)(e)(ii) scholarships received by non-resident temporary workers for French language training would not be included in their taxable income earned in Canada
2025-07-16 2024 Ruling 2024-1018811R3 F - RCA, Refundable Tax, Letter of credit Income Tax Act - Section 207.5 - Subsection 207.5(2) an RCA trust’s refundable Pt. XI.3 tax can be refunded through winding it up and replacing it by a new LC trust
2025-07-09 26 February 2025 Internal T.I. 2023-0985151I7 F - Remboursement de frais juridiques par un actionnaire à sa société / Reimbursement of legal fees by a shareholder Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees the vendor’s agreed reimbursement of the sold corporation’s legal costs of a failed suit in consideration for a dividend had the suit succeeded, likely was non-deductible
Income Tax Act - Section 42 - Subsection 42(1) - Paragraph 42(1)(b) - Subparagraph 42(1)(b)(ii) s. 42(1)(b)(ii) might apply to the vendor’s agreed reimbursement, post-sale, of the sold corporation’s legal costs of a failed suit
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense contingent dividend prospect likely did not support a deduction for an obligation to reimburse legal fees
22 May 2024 External T.I. 2024-1016211E5 F - Mineral Resource Cert - XXXXXXXXXX Income Tax Act - Section 248 - Subsection 248(1) - Mineral Resource - Paragraph (d) - Subparagraph (d)(i) NRC certification received

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