Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-03-14 14 February 2003 External T.I. 2002-0173195 F - Transfer of Shares Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) s. 69(1)(b) rather than s. 6(1)(a) generally applicable to gift of majority ownership of CCPC to employee son
11 March 2003 Internal T.I. 2002-0180997 F - CONGE A TRAITEMENT DIFFERE Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(v) timing of taxation from breaking Reg. 6801(a)(vi) depends on timing of break decision/ full-timer must return to full-time work
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(iv) employee can reduce the leave in order to reduce the resumed-work requirement
13 March 2003 Internal T.I. 2003-0183697 F - FRAIS DE GARDE Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense child care expenses can include liquidated damages for early termination of daycare contract
2003-03-07 4 March 2003 External T.I. 2002-0150985 F - TRANSFERT-RESIDENCE PRINCIPALE Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) s. 40(2)(b) deduction available on transfer of residence to wholly-owned corporation
28 February 2003 External T.I. 2002-0163425 F - LEGS PARTICULIER AVEC CHARGE ET REER Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums particular legacy paid out of RRSP of deceased annuitant can qualify as refund of premiums even if it is charged with another legacy
6 March 2003 External T.I. 2002-0166855 F - CADEAU EN QUASI-SPECES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) cash equivalent exclusion from accommodation of employee gifts and awards
5 February 2003 External T.I. 2002-0178395 F - PARTIE 1.3 AIDE GOUVERNEMENTAL/SURPLUS Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(a) government assistance disclosed in the notes as being applied to reduce capital property cost, is not surplus
5 February 2003 External T.I. 2002-0178405 F - PARTIE 1.3 CHEQUE DEPOT EN CIRCULATION Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(c) bank overdrafts increase the bank deposit balance or reduce the bank overdraft/ outstanding cheques, although not amounts paid, are reflected to the extent in balance sheet
5 February 2003 External T.I. 2002-0178415 F - PARTIE 1.3 AVANCES SUR CONTRAT Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(c) deferred revenue included in capital only to the extent of actual advances
5 February 2003 External T.I. 2003-0183055 F - PARTIE 1.3 ACTIF UTILISE Income Tax Act - Section 181.4 - Paragraph 181.4(a) future income tax asset is not an asset used or held by the corporation
5 February 2003 External T.I. 2003-0183065 F - FASB 143 ET PARTIE 1.3 Income Tax Act - Section 181.4 - Paragraph 181.4(a) US accounting standards can potentially be taken into account
2003-02-21 19 February 2003 Internal T.I. 2002-0169967 F - ARREARAGES-PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount settlement payment of past and future support payments was not a support amount
18 February 2003 External T.I. 2003-0182325 F - RAP LIEN PRINCIPAL DE RESIDENCE Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(a.1) individual co-owning a residence that was leased to her and spouse was disqualified if it was used as her principal place of residence, i.e., it had exclusive kitchen, bathroom and bedroom
2003-02-14 11 December 2002 External T.I. 2002-0146465 F - Article XVI Canada-E.U. Treaties - Income Tax Conventions - Article 16 income earned by S Corp. of US athlete was taxable under Art. 16
28 January 2003 External T.I. 2002-0147405 F - Crédit d'impôt pour emploi à l'étranger Income Tax Act - Section 122.3 - Subsection 122.3(1) leave periods in Canada count towards the period of 6 months’ employment under foreign project if not terminated before leave commences
Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) leave period in Canada counted towards the 6-month period required under s. 122.3(1) of employment on performing services on foreign project
30 January 2003 Internal T.I. 2002-0157307 F - Article 86.1 et fractions d'action Income Tax Act - Section 86.1 - Subsection 86.1(2) - Paragraph 86.1(2)(b) distribution of fractional shares and their immediate cash sale complied with s. 86.1(2)(b)
27 January 2003 External T.I. 2002-0169385 F - Un serveur et l'établissement stable Treaties - Income Tax Conventions - Article 5 Canadian servers of Swiss company would not be a PE if sales of its product not made through the website
28 January 2003 Internal T.I. 2002-0175927 F - Choix de 107(2.001) Income Tax Act - Section 107 - Subsection 107(2.001) the election, which is unlike the designation in Lussier, cannot be made late
2003-02-07 5 February 2003 External T.I. 2002-0157445 F - AAPE ACTION ADM PETITE ENTREPRISE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) question of fact whether shares of stock-trading corporation were QSBCs
Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation CCRA articulation of Ensite test in relation to stock-trading business
31 January 2003 External T.I. 2002-0161555 F - VENTE D'UN IMMEUBLE LOCATIF Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) payment made by vendor to purchaser of building reduced its proceeds of disposition
3 February 2003 Internal T.I. 2002-0168317 F - PAIEMENT DE DEPENSES Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amount recipient does not qualify as having discretion as to use if a court order specifies the expenses that are covered
Income Tax Act - Section 56.1 - Subsection 56.1(2) express mention of ss. 56.1(2) and 60.1(2) no longer required
2003-01-24 21 January 2003 External T.I. 2001-0109445 F - Usufruit-droit privé français-nu-prop. Cdn. Income Tax Act - Section 70 - Subsection 70(5) when usufruct created by will, legatee of bare ownership acquired it at FMV of bare ownership
Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) bare owner of rental property not entitled to claim CCA
10 November 2002 Roundtable, 2002-0156845 F - CONGRE 2002 APFF Income Tax Act - Section 7 - Subsection 7(1.1) realization of s. 7(1.1) gain on shares’ disposition even though they had lost most of their value
13 January 2003 External T.I. 2002-0176905 F - CPCC Status Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation - Paragraph (b) test of majority-ownership of voting shares
27 January 2003 Internal T.I. 2002-0177197 F - ATTRIBUTION DU GAIN A UN CONJOINT SEPARE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount net rental income on property received by separated spouse to fund support was rental income, not a support amount
Income Tax Act - Section 74.5 - Subsection 74.5(3) - Paragraph 74.5(3)(b) application of s. 74.5(3)(b) re properties divided between the separated spouses and sold before divorce
2003-01-10 23 January 2003 External T.I. 2002-0161405 F - COUT DE TRANSPORT DU CONJOINT Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) presence of employee’s spouse at the special work site would not be decisive of their off-site home not being the employee’s “principal place of residence”
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) transportation costs could include those of a spouse staying with the employee at the special work site
2003-01-03 14 January 2003 External T.I. 2002-0154205 F - CARACTERE RAISONNABLE FRAIS Income Tax Act - Section 67 reasonableness of management fees determined by reference to what would be paid a 3rd party
2002-12-20 12 December 2002 External T.I. 2001-0100755 F - Impact of LCB on Dr and Part IV Income Tax Act - Section 129 - Subsection 129(2) general practice to net dividend refund against unpaid Part I tax
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) connected dividend recipient is not required to pay s. 186(1)(b) tax if it can demonstrate by the return-filing deadline that such tax was eliminated through a loss carryback
Income Tax Act - Section 164 - Subsection 164(1) where subsequent loss carryback eliminates the Part I tax and dividend refund (DR), the refund interest is calculated on the initial Part I tax amount even if the DR reversal is paid by set-off
Income Tax Act - Section 160.1 - Subsection 160.1(1) interest payable under s. 160.1(1) on the reversed dividend refund where subsequent year’s loss is carried back to eliminate the Part I tax and RDTOH
3 January 2003 External T.I. 2002-0141745 F - Terminaison d'une Fiducie testamentaire Income Tax Act - Section 249 - Subsection 249(1) - Paragraph 249(1)(b) testamentary trust ceases to exist when all its assets have been distributed
10 January 2003 External T.I. 2002-0143315 F - FRAIS LEGAUX DEDUCTIBILITE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs estate could deduct damages incurred in the course of business of the deceased

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