Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
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
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(f) s. 85(1)(f) applicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration received under s. 85(1) declined in value
21 January 2002 External T.I. 2001-0080325 F - FRAIS DE VOYAGE-BIENS LOCATIFS Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) notwithstanding s. 18(1)(h) jurisprudence, CCRA allows travel expenses incurred for collecting rent, supervising repair work or managing the multiple rental properties
9 January 2002 External T.I. 2001-0089655 F - AVANTAGE AUTOMOBILE Income Tax Act - Section 6 - Subsection 6(2) being on-call at home does not diminish the personal benefit from use
Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(i) 6-seat pickup not excluded from 90% test
10 January 2002 External T.I. 2001-0090325 F - UTILISATION DES VEHICULES Income Tax Act - Section 6 - Subsection 6(2) commuting in connection with employer requirement to keep vehicle overnight at home was personal use – but not emergency use
18 January 2002 External T.I. 2001-0092665 F - AUTOMOBILE-VEHICULE PUBLICITAIRE Income Tax Act - Section 248 - Subsection 248(1) - Automobile automobile status turns on design, not use (here, only for advertising)
Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(i) vehicle cosmetically altered for advertising purposes is not thereby used to transport goods or equipment
8 January 2002 External T.I. 2001-0094485 F - EMPLOI SUR UN CHANTIER PARTICULIER Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) s. 6(6) applicable to a non-citizen
2 January 2002 External T.I. 2001-0094555 F - Subsidies and Assistance Payments Income Tax Act - Section 13 - Subsection 13(7.1) government assistance to subsidize the interest costs on a loan applied for expansion purposes did not reduce UCC under s. 13(7.1)
2001-12-21 9 January 2002 External T.I. 2001-0075825 F - CII-LIQUIDATION Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(e.2) parent has an s. 12(1)(t) inclusion in its year beginning after the winding-up if the sub claimed winding-up year ITCs respecting depreciable property which it sold before wind-up
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(t) application of s. 12(1)(t) to parent in the year following the s. 88(1) wind-up of sub
19 December 2001 External T.I. 2001-0077175 F - FRAIS ENCOURUS POUR UNE INVENTION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs business may have commenced with incurring costs to obtain a temporary patent

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