Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-10-11 4 November 2002 External T.I. 2002-0158885 F - Alloc. of Safe Inc. & Disc. Div. Shares Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) payment of dividends on discretionary dividend shares with no liquidation entitlement would not result in a significant reduction
4 November 2002 Internal T.I. 2002-0160697 F - REPARTITION DU PLAFOND Income Tax Act - Section 125 - Subsection 125(5) - Paragraph 125(5)(a) s. 125(5)(a) did not apply to a CCPC for its 2nd 2000 taxation year resulting from an acquisition of control causing it to be associated with a different CCPC
22 October 2002 External T.I. 2002-0162835 F - Recbles Recd. after Disp. of Farm. Bus. Income Tax Act - Section 28 - Subsection 28(5) income stabilization amounts that were receivable at the time of s. 85(1) drop-down of cash-method farming business were deemed to be income when subsequently received
2002-09-27 17 October 2002 External T.I. 2002-0130915 F - PAIEMENT FORFAITAIRE RETROACTIF Income Tax Act - Section 110.2 - Subsection 110.2(1) - Qualifying Amount - Paragraph (a) - Subparagraph (a)(i) out-of-court settlement did not qualify
24 October 2002 Internal T.I. 2002-0140527 F - PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount no discretion as to use of cheques if required to endorse them back to the payor
17 October 2002 Internal T.I. 2002-0159107 F - SALAIRE PAYE D'AVANCE Income Tax Act - Section 5 - Subsection 5(1) good argument that an advance to be repaid out of the final pay was advance wages rather than a loan
24 October 2002 External T.I. 2002-0160715 F - ASSURANCE-VIE IMPOSITION AUX TROIS ANS Income Tax Act - Section 12.2 - Subsection 12.2(3) determination of exempt policy status within bailiwick of insurer
18 October 2002 External T.I. 2002-0163615 F - Waiver of Capital Dividend Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) inapplicable to waiver of capital dividend
2002-09-13 31 July 2002 Internal T.I. 2002-0136937 F - Placement Français "Assurance-salaire-vie Treaties - Income Tax Conventions - Article 18 withdrawal from French employee-contribution plan (assurance-salaire-vie) was not a “pension”
Income Tax Act - Section 233.3 - Subsection 233.3(1) - Reporting Entity cost amount of foreign retirement plan may have been stepped up under s. 128.1(1)
4 October 2002 Internal T.I. 2001-010564A F - PENSION ALIMENTAIRE-ARRERAGES Income Tax Act - Section 60 - Paragraph 60(b) lump sum payment in settlement of periodic support payments in arrears is an amount payable on a periodic basis
General Concepts - Payment & Receipt set-off does not constitute payment unless the parties so agree
2 October 2002 External T.I. 2002-0118815 F - DIABETE JUVENILE Income Tax Act - Section 118.3 - Subsection 118.3(1) - Paragraph 118.3(1)(a.1) child with juvenile diabetes does not generate the infirm credit, including under para. (a.1)
3 October 2002 External T.I. 2002-0122345 F - EN RAPPORT AVEC ENTREPRISE Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(i) related-business requirement will generally be satisfied where the results of the SR&ED, if successful, have a direct and beneficial application in the taxpayer’s business
Income Tax Act - Section 37 - Subsection 37(1.1) SR&ED performed by sub to improve products of unrelated business of parent is deemed to be related to sub’s business
26 September 2002 External T.I. 2002-0128955 F - 84.1(1)(b) Deem Dividend 83(2) CDA Income Tax Act - Section 83 - Subsection 83(2) s. 84.1 deemed dividend to someone who in fact was not a shareholder was not eligible for an s. 83(2) election
3 October 2002 External T.I. 2002-0133525 F - CADEAUX QUASI-MONETAIRES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) awards of gifts certificates that could be exchanged for under $500 of the employer’s goods were taxable benefits
4 October 2002 Internal T.I. 2002-0139807 F - REMBOURSEMENT DE TPS Income Tax Act - Section 6 - Subsection 6(8) - Paragraph 6(8)(b) GST rebate claimed by employee re CCA on car after its sale reduces UCC pursuant to J of formula rather than under s. 13(7.1)
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - J GST rebate received after sale of asset would not, under J of UCC formula, produce recapture
Income Tax Act - Section 13 - Subsection 13(7.1) GST rebate claim reduced UCC pursuant to J of formula rather than under s. 13(7.1, since claimed after asset’s disposition
30 September 2002 Internal T.I. 2002-0152107 F - BRANCHEMENT A DES SERVICES PUBLICS Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) - Subparagraph 8(1)(c)(iii) utilities do not extend to cable, satellite TV and internet in light of s. 8(1) preamble
Income Tax Act - Section 62 - Subsection 62(3) - Paragraph 62(3)(g) utilities include cable, satellite TV and internet
2 October 2002 Internal T.I. 2002-0153417 F - REVENU D'EMPLOI ORGANISATION Income Tax Regulations - Regulation 8900 - Subsection 8900(1) - Paragraph 8900(1)(b) Montreal IFC not a prescribed organization
1 October 2002 Internal T.I. 2002-0154887 F - DEPENSES DE REPAS Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(g) simplified method not available for self-employed individuals
2002-08-30 13 August 2002 External T.I. 2002-0143255 F - Par. 70(6)(b) Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) retained income treated as capital for s. 70(6)(b) purposes in subsequent years/ direct payment of spouse’s expenses with express or implied consent is permissible
20 August 2002 External T.I. 2002-0145225 F - Contingent Right to Acquire Shares Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) s. 251(5)(b) not applied iteratively, where shareholders have a pro rata right to acquire another’s shares, and a contingent right to acquire those shares not taken up in the 1st round
17 September 2002 Internal T.I. 2002-0149147 F - SERVICES MEDICAUX-TEMOIGNAGE Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) physician’s court testimony was not medical services
13 September 2002 External T.I. 2002-0159525 F - Non-Arm's Length Sale of Shares Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) CCRA does not generally presume that an uncle and nephew do not deal at arm’s length
11 September 2002 External T.I. 2002-0161005 F - REÇU POUR DON - MUNICIPALITÉ Income Tax Act - Section 110.1 - Subsection 110.1(2) a local municipality incorporated under the Quebec Municipal Territorial Organization Act could issue receipts for gifts received
2002-08-02 12 August 2002 External T.I. 2002-0150095 F - Capital Dividend Account Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) surrogatum principle not applied to damages received from insurance company for alleged default in paying life insurance proceeds
16 August 2002 Internal T.I. 2002-0156577 F - ASSURANCE - INVALIDITE - PARITE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) previous contributions could be deducted from subsequent equalization adjustment received
2002-07-19 14 August 2002 External T.I. 2001-0116385 F - PARTAGE DE COMMISSIONS Income Tax Act - Section 56 - Subsection 56(2) a reasonable portion of mutual fund commissions received by a firm should be allocated to its representative who made the sales
13 August 2002 External T.I. 2002-0121295 F - PBR DES PARTS PRIVILEGIEES Income Tax Act - Section 43 - Subsection 43(1) sale of preferred and retention of common partnership units entailed part disposition of single property/ different s. 43 allocation methods possible
Income Tax Act - Section 248 - Subsection 248(1) - Property preferred and common partnership units were single property
6 August 2002 External T.I. 2002-0130735 F - DISPOSITION D'UN PERMIS Income Tax Regulations - Schedules - Schedule II - Class 14 licence to operate a seniors home was eligible capital property whereas related agreements with Ministry (that after a point were not automatically renewable) were Class 14 property
6 August 2002 Internal T.I. 2002-0130897 F - RECOMPENSES ES QUASI-MONETAIRES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) gift cards and smart cards with spendable balances do not come within the ITTN 25 gifts policy
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) s. 67.1(2)(d) exclusion inapplicable to meal or show ticket gifts within ITTN 25 gifts policy
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(ii) s. 18(1)(l)(ii) applies irrespective whether the membership is an employer gift within the ITTN 25 gifts policy
9 August 2002 Internal T.I. 2002-0145817 F - TAUX DE DEDUCTION - PTPE - ANNEE 2000 Income Tax Act - Section 38 - Paragraph 38(c) BIL realized under s. 50 at end of year (2000) so that ½ an ABIL
2 August 2002 External T.I. 2002-0152445 F - RENTE VIAGERE ET CREDIT Income Tax Act - Section 118 - Subsection 118(7) - Pension Income - Paragraph (a) - Subparagraph (a)(i) an annuity that ceases upon attaining a specified age is not a “life annuity”

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