Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2002-02-01 22 February 2002 Internal T.I. 2001-0095217 F - FAILLITE-PROVINCE DE RESIDENCE Income Tax Act - Section 128 - Subsection 128(2) - Paragraph 128(2)(e) returns for both stub returns for year of bankruptcy are filed for the province of the individual’s residence on December 31 of that calendar year
Income Tax Regulations - Regulation 2601 - Subsection 2601(1) return for short taxation year resulting from bankruptcy required to be filed for the province of the individual’s residence on December 31 of that calendar year
21 February 2002 External T.I. 2001-0102405 F - ACTIVITE AGRICOLE-ERABLIERE Income Tax Act - Section 248 - Subsection 248(1) - Farming provision of meals at a sugar shack was a separate non-farming activity
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property use of maple sugar shack in significant meal preparation operation caused the farm property to not qualify as a “qualified farm property”
20 February 2002 External T.I. 2001-0105695 F - Remboursement d'impôt d'une fiducie liquidée Income Tax Act - Section 104 - Subsection 104(1) ex-trustee rather than ex-unitholders should be paid the tax refund to which wound-up mutual fund trust was entitled
14 February 2002 Internal T.I. 2001-0107757 F - PENSION ALIMENTAIRE POUR ENFANTS Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount fixed support payments were not required to be applied by the recipient to listed expenses and, therefore, their use was at her discretion and they were allowances
Income Tax Act - Section 56.1 - Subsection 56.1(4) - Child Support Amount separation agreement was sufficiently general as to the amounts’ use for them to be child support amounts
7 December 2001 Internal T.I. 2001-0108597 F - Crédit d'impôt emploi étranger Art. 122.3 Income Tax Act - Section 122.3 - Subsection 122.3(1) - Paragraph 122.3(1)(b) - Subparagraph 122.3(1)(b)(i) contract can be with a related person
Income Tax Act - Section 248 - Subsection 248(1) - Business there is a business if profit generated even if the activity was not undertaken primarily for the purpose of earning a profit
6 December 2001 Internal T.I. 2001-0110047 F - Revenu d'emploi organisation intern. Income Tax Act - Section 126 - Subsection 126(3) organization that brought together states, government agencies and non-governmental organizations did not qualify as an intergovernmental organization
20 February 2002 External T.I. 2001-0114745 F - CONTINUATION SOCIETE EN COOPERATIVE Income Tax Act - Section 248 - Subsection 248(1) - Disposition consequences of the continuance of a corporation as a cooperative depend on the implementation details
14 February 2002 External T.I. 2002-0118915 F - BIENS ETRANGERS INTERETS COURUS Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (b) cost amount of loan does not include accrued interest
2002-01-18 29 January 2002 External T.I. 2000-0053605 F - REVENU DES PECHEURS Income Tax Act - Section 9 - Nature of Income factors for allocating catch between individual holding fishing licence and his fishing corporation
5 December 2001 Internal T.I. 2001-0089247 F - CDC - Immobilisation Admissible Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (c.1) CDA addition for completed taxation years/ no double ECE deduction
11 February 2002 External T.I. 2001-0092975 F - MOMENT DE L'INCLUSION DANS LE REVENU Income Tax Act - Section 9 - Timing retroactive fee increases were not income until that date that the Order in Council ordering their payment took effect
22 January 2002 Internal T.I. 2001-0100537 F - ENTENTE TEMPORAIRE PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day cessation of temporary support variation agreement would effectively reverse the commencement day
6 February 2002 External T.I. 2001-0100565 F - CHANGEMENT D'USUAGE ET PERTE FINALE Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) change to personal use of assets on cessation of proprietorship could trigger terminal loss/ no application of s. 13(7)(a) if they are not used at all after the cessation
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) change to personal use of assets on business termination engages ss. 45(1)(a) and 13(7)(a), but not if all use ceases
11 February 2002 Internal T.I. 2001-0102747 F - FABRICATION ET TRANSFORMATION Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (c) M&P activity not assimilated to construction business where half the gross revenues were from sales
Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits not sale of products where services component of construction contract was not incidental
Income Tax Act - Section 9 - Timing contract completion method can be used by a non-construction business company
3 December 2001 Internal T.I. 2001-0104677 F - VERSEMENT POUR REMBOURSER L'IMPOT Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount annual top-up to monthly support to cover income tax to the recipient qualified as support amount
8 February 2002 Internal T.I. 2001-0106197 F - PRIME D'ASSURANCE-VIE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) allocation of premium between plan with different components
11 January 2002 External T.I. 2001-0112605 F - Section 159 - Payments on behalf of others159(2) Income Tax Act - Section 159 - Subsection 159(2) payment of purchase price by purchaser to trust account of its lawyer or purchaser’s lawyer for discharge first of non-CCRA debts did not engage s. 159(2)
Income Tax Act - Section 248 - Subsection 248(1) - Legal Representative establishment for the purchaser of a trust account to pay vendor’s debts did not render it a legal representative of the vendor
10 January 2002 External T.I. 2001-0112885 F - ASSURANCE-VIE ET PRET REMBOURSE AU DECES Income Tax Act - Section 148 - Subsection 148(9) - Policy Loan GAAR could apply where a life insurance policy is pledged for a loan that is not required to be repaid until after death
Income Tax Act - Section 15 - Subsection 15(1) benefit may result from pledging a corporate asset to secure a personal loan
Income Tax Act - Section 207.6 - Subsection 207.6(2) overview of employer use of life insurance policy to fund RCA benefits
14 January 2002 External T.I. 2001-0114035 F - ECHANGE D'ACTIONS ET PARAGRAPHE 9001(2) Income Tax Regulations - Regulation 9001 - Subsection 9001(2) - Paragraph 9001(2)(b) share exchange must be with the original share issuer
Income Tax Regulations - Regulation 9001 - Subsection 9001(2) - Paragraph 9001(2)(a) shares will remain prescribed shares if the corporation ceases to be a QSBC after one year
14 December 2001 Internal T.I. 2001-0114320 F - CADEAUX ON RECOMPENSES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) new gift policy does not apply to gifts made to shareholders or their family members
25 January 2002 External T.I. 2001-0114615 F - CONTRAT DE RENTE PRESCRITE ET FIDUCIE Income Tax Regulations - Regulation 304 - Subsection 304(3) - Paragraph 304(3)(a) a beneficiary of a trust holding an annuity contract is not necessarily deemed to be the annuitant
Income Tax Regulations - Regulation 304 - Subsection 304(1) - Paragraph 304(1)(c) - Subparagraph 304(1)(c)(iv) - Clause 304(1)(c)(iv)(B) requirement of fixed term where holder is a trust other than under s. 104(4)(a)
14 January 2002 External T.I. 2001-0116225 F - DOMMAGE SUBI PAR UN REER ET INDEMNITE Income Tax Act - Section 146 - Subsection 146(1) - Premium payment by broker of damages to RRSP was not a premium
Income Tax Act - Section 146 - Subsection 146(8) payment by broker of damages to RRSP was not a benefit to annuitant
28 January 2002 External T.I. 2002-0116635 F - REEE-REGLE D'ATTRIB. ET PERT NULLE Income Tax Act - Section 74.3 - Subsection 74.3(1) - Paragraph 74.3(1)(a) s. 74.1(2) does not apply where a taxpayer transfers property to an RESP
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) s. 40(2)(g) does not apply on a transfer to an RESP
7 February 2002 External T.I. 2002-0118535 F - REMBOURSEMENT DE PRIMES - ENFANT MINEUR Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums - Paragraph (b) financial dependence condition can be established even where child not living with parent
2002-01-04 21 January 2002 External T.I. 2001-0078735 F - Droit de recevoir une somme Income Tax Act - Section 54 - Proceeds of Disposition FMV of contingent right to deferred cash sales proceeds was included in proceeds, with subsequent gain or loss when the contingency was resolved
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) s. 12(1)(g) inapplicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration declined in value

Pages