Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2003-01-24 21 January 2003 External T.I. 2001-0109445 F - Usufruit-droit privé français-nu-prop. Cdn. 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
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees estate could deduct legal fees paid by it regarding damages incurred in the course of business of the deceased
12 December 2002 External T.I. 2002-0146175 F - Losses Incurred by a Taxpayer ect...... Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) - Subparagraph 39(1)(c)(iii) usual s. 50(1)(b)(i) and SBC qualification rules applied to shares of a cooperative corporation that became bankrupt
20 December 2002 External T.I. 2002-0164735 F - PRODUIT DE DISPOSITION ACHALANDAGE Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable E full potentially receivable amount must be recognized, notwithstanding subsequent possible downward adjustment
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) s. 12(1)(g) applicable to incremental pharmacy sales price for goodwill based on volume of prescriptions for post-sale years
7 January 2003 Internal T.I. 2002-0168347 F - RETRAITE OU PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount splitting of pension income for support purposes was alimony
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) equal share of pension income going to ex-spouse without declared element of support was received as pension income
11 December 2002 Internal T.I. 2002-0173007 F - Observation aux commentaires (OCDE) Treaties - Income Tax Conventions - Article 12 Canada’s withdrawal of its observation on Art. 12 on March 28, 2002 was prospective, and did not affect its right to impose withholding tax on payments for use of a secret process prior to that date
7 January 2003 External T.I. 2002-0173245 F - REMBOURSEMENT DEPENSES ET ALLOCATIONS Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) no benefit on reimbursement of snacks provided to clients
6 January 2003 External T.I. 2002-0173405 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) application of transitional rules re changes in inclusion fraction including example
23 December 2002 Internal T.I. 2002-0176087 F - LIMITE APPLICABLE TRANSFER DANS REER Income Tax Act - Section 146.3 - Subsection 146.3(6.11) - Paragraph 146.3(6.11)(b) - Variable C Variable C included the deemed benefit under s. 146.3(6.1)
Income Tax Act - Section 146.3 - Subsection 146.3(6.1) deemed benefit under s. 146.3(6.1) included in amount referred to in s. 146.3(5)
2002-12-06 16 December 2002 External T.I. 2002-0138195 F - ALLOCATION POUR FRAIS DE DEPLACEMENT Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) travel allowance for travel 40% of the employment days between home and a more remote employer situs was for personal travel
Income Tax Act - Section 81 - Subsection 81(3.1) amalgamation of 2 part-time employers ended the s. 81(3.1) exclusion so that travel allowance was for personal travel
17 December 2002 External T.I. 2002-0158165 F - REPAS DE FETE OFFERTS PAR L'EMPLOYEUR Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(f) monthly restaurant event for only those employees whose birthday month it was would not qualify/ restaurant implicitly the employer’s place of business
20 December 2002 External T.I. 2002-0159365 F - REMUNERATION NON MONETAIRE Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) no source deduction or remittance obligations where all remuneration is non-monetary
18 December 2002 Internal T.I. 2002-0164817 F - HONORAIRES POUR SERVICES DE MANDATAIRE Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose fees paid to a management company whose employees were employed by the professional recipient may not be incurred for an income-producing purpose
Income Tax Act - Section 67 CCRA policy on cost-plus-15% management companies of a professional inapplicable where it is providing agency services
2002-11-22 4 December 2002 Internal T.I. 2002-0138067 F - REMPLACEMENT D'UNE CREANCE PAR UNE AUTRE Income Tax Act - Section 18 - Subsection 18(9.1) - Paragraph 18(9.1)(a) financing the repayment of a debt obligation with the proceeds of a borrowing from a different creditor does not constitute a debt substitution
6 December 2002 External T.I. 2002-0152085 F - PERSONNE A CHARGE TRANSFER D'UN MONTANT Income Tax Act - Section 118.3 - Subsection 118.3(3) credit transferee need not be the sole provider
28 November 2002 Internal T.I. 2002-0153837 F - SOMMES IMPAYEES Income Tax Act - Section 78 - Subsection 78(1) - Paragraph 78(1)(a) IT-109R, para. 12(a) not applied where there was an asymmetry between the deduction/ net inclusion amounts reported by the debtor and creditor
5 December 2002 Internal T.I. 2002-0155667 F - DEDUCTIBILITE DES INTERETS CAPITALISEES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) capitalized simple interest on loan to acquire common shares was deductible if reasonable expectation of dividends
Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(b) debt forgiveness rules do not apply to forgiveness of compound interest
Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount debt forgiveness rules do not apply to forgiveness of compound interest
5 December 2002 External T.I. 2002-0163135 F - Source Deductions - Nominal Partnership Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) an individual could cover the payroll of the employees of him and another in agreed proportions as agent and principal, and handle all the source deductions, and prepare one information return
General Concepts - Agency paymaster under payroll agency arrangements could fulfill the source deduction and T4 reporting requirements of the principal
5 December 2002 Internal T.I. 2002-0171847 F - RESIDENCE D'UNE FIDUCIE Income Tax Act - Section 15 - Subsection 15(2.1) s. 15(2) applies to loan made by a corporation to a personal trust of which its shareholder is a beneficiary

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