Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-10-12 29 October 2001 External T.I. 2001-0092035 F - association related persons Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) s. 251(5)(b)(i) applies differently than s. 256(1.4)(a) because it does not deem the subject shares to be outstanding
Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) crucially, s. 256(1.4)(a), unlike s. 251(5)(b)(i), deems the affected shares to be issued and outstanding
16 October 2001 Internal T.I. 2001-0095967 F - revenu protégé en main Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) premium paid on open-market repurchases of a corporation’s shares did not reduce the safe income on hand of its remaining shares
23 October 2001 External T.I. 2001-0096525 F - transfer and loans to corp-attribution rules Income Tax Act - Section 74.4 - Subsection 74.4(2) spouse was a specified shareholder where she was one of the beneficiaries of a discretionary trust holding more than 10% of the corporation’s shares
10 October 2001 Internal T.I. 2001-0097597 F - Emprunt auprès d'une banque étrangère Income Tax Act - Section 214 - Subsection 214(15) - Paragraph 214(15)(b) setup fees came within s. 214(15)(b)
15 October 2001 External T.I. 2001-0098315 F - PLACEMENT ADMISSIBLE REER Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Designated Shareholder - Paragraph (d) employees constitute a group if they collectively have control
Income Tax Regulations - Regulation 4901 - Subsection 4901(2.2) - Paragraph 4901(2.2)(b) IT-419, para. 13 re right of first refusal/ shotgun applies to application of Reg. 4901(2.2)(b)
Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Designated Shareholder - Paragraph (a) IT-419 position re right of first refusal/ shotgun applies to designated shareholder test
30 October 2001 External T.I. 2001-0100555 F - PERTE ET REER Income Tax Act - Section 40 - Subsection 40(3.3) suspended loss rule did not apply to sale by individual’s corporation to that individual’s RRSP
Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(g) an RRSP was not affiliated with its annuitant prior to s. 251.1(1)(g)
23 October 2001 Internal T.I. 2001-0102337 F - MONTANTS RECUS D'UNE EGLISE Income Tax Act - Section 3 - Paragraph 3(a) donations received by an evangelist from a foreign church in order to found and build up a Canadian church were taxable
2001-09-28 3 August 2001 External T.I. 2000-0060835 F - RESSOURCES D'HEBERGEMENT Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) requirements for s. 81(1)(h) exemption to apply to foster families
17 July 2001 External T.I. 2000-006174 F - BIENS D'INVENTAIRE Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables Ensite and Marconi exceptions to corporate investments of earnings being held on capital account
24 July 2001 External T.I. 2001-006547 F - RESERVE POUR GAIN EN CAPITAL Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) - Clause 40(1)(a)(iii)(C) no capital gains reserve where proceeds were received as shares which were not tradeable for a hold period
17 July 2001 External T.I. 2001-0068355 F - DEDUCTION D'UN BONI A UN EMPLOYE Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) bonus paid to manage investments would not be a disposition expense
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Oversight or Investment Management investment performance bonus to be deductible would need to be incurred as part of the activity of managing the investments
3 May 2001 External T.I. 2001-0069535 F - DEPENSE D'INTERET REGLES D'ATTRIBUTION Income Tax Act - Section 74.5 - Subsection 74.5(11) potential application of s. 74.5(11) to leveraged s. 73(1) property transfer to spouse
20 September 2001 External T.I. 2001-0070705 F - ETABLISSEMNT DOMESTIQUE AUTONOME Income Tax Act - Section 18 - Subsection 18(12) work premises attached to principal residence with the same municipal address likely were part of the individual’s self-contained domestic establishment
Income Tax Act - Section 248 - Subsection 248(1) - Self-Contained Domestic Establishment self-contained domestic establishment is a living unit with restricted access containing a kitchen, bathroom, and sleeping facilities
11 October 2001 Internal T.I. 2001-0079197 F - pension alimentaire Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(ii) suspension of support did not trigger a commencement day
Income Tax Act - Section 56.1 - Subsection 56.1(3) post-May 1997 temporary custody order triggered a commencement day
16 August 2001 Internal T.I. 2001-0079317 F - RESIDENCE PRINCIPALE DEMI-HECTARE Income Tax Act - Section 54 - Principal Residence - Paragraph (e) exemption could be claimed only for one lot/ CCRA does not normally challenge contribution to enjoyment of residence of under ½ hectare if no commercial use
2 May 2001 Internal T.I. 2001-007939 F - CONVENTION D'EMISSION D'ACTIONS Income Tax Act - Section 7 - Subsection 7(2) whether s. 7(2) applied turned on whether shares were held as trustee
3 May 2001 Internal T.I. 2001-0081837 F - BILLET CONVERTIBLES PRINCIPAL Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) corporation was considered to have paid an amount on conversion of convertible notes equal to their face amount and stated capital of the issued shares
18 September 2001 Internal T.I. 2001-0082997 F - COTISATIONS PATRONALES REGIME DIFFERES Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense Fédération case does not impact the deductibility of contributions to various deferred compensation plans
8 October 2001 Internal T.I. 2001-0086177 F - FRAIS DE SCOLARITE Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(a) - Subparagraph 118.5(1)(a)(ii.2) - Clause 118.5(1)(a)(ii.2)(B) English instruction did not qualify as occupational development under s. 118.5(1)(a)(ii.2)
19 September 2001 External T.I. 2001-0086545 F - IMMEUBLE VENDU A PERTE Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) - Subparagraph 13(7)(e)(i) s. 110.6(19) election on building could result in subsequent terminal loss
17 July 2001 External T.I. 2001-0091015 F - RISTOURNES DE COOPERATIVES DE TRAVAILLEURS Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage worker cooperative could deduct patronage dividends to members
20 July 2001 External T.I. 2001-0092425 F - PLACEMENTS ADMISSIBLES SPCC Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j.1) overview re RRSP of sole shareholder of mortgage issuer
30 August 2001 External T.I. 2001-0093645 F - FRAIS IMPUTE A UN REER LORS D'UN RETRAIT Income Tax Act - Section 146 - Subsection 146(8) no annuitant benefit where RRSP bears an admin fee on a withdrawal
16 August 2001 External T.I. 2001-0093715 F - ALLOCATION DE RETRAITE ET RAP Income Tax Act - Section 146 - Subsection 146(5) - Paragraph 146(5)(a) - Subparagraph 146(5)(a)(iv.1) 90-day HBP rule does not apply to premiums for which s. 60(j.1) deduction is claimed
23 August 2001 External T.I. 2001-0095015 F - ALLOCATION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance retiring allowance can be received in instalments and well in advance of planned termination date
18 September 2001 External T.I. 2001-0095265 F - TAXE SUR LE CAPITAL Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(c) outstanding cheques are not loans or advances, but they reduce the debts of which they are repayment only to the extent reflected in the balance sheet
General Concepts - Payment & Receipt in Quebec, a cheque is not payment until the debtor’s account is debited
17 August 2001 External T.I. 2001-0095645 F - PRET HYPOTHECAIRE INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) administratively splitting a mortgage loan into 2 components does not allow the principal repayments to be allocated first to repayment of the loan’s ineligible portion
29 August 2001 External T.I. 2001-0097485 F - DEDUCTION DE FRAIS DE SURVEILLANCE Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) supervisory fees paid to intermediary between portfolio manager and taxpayer were non-deductible
13 September 2001 External T.I. 2001-0097675 F - COUT INDIQUE REVENUS A RECEVOIR Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (b) cost amount of shares not increased by dividend receivable, and of loan, not increased by accrued interest
11 October 2001 External T.I. 2001-0100245 F - POLICE EXEMPTEE ASSUREUR NON-RESIDENT Income Tax Regulations - Regulation 306 - Subsection 306(1) information required to verify that a policy issued by a non-resident insurer is an exempt policy does not exist
Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) s. 128.1(1) applicable to life insurance policy of non-resident insurer to a non-resident policyholder’s immigration
2 October 2001 External T.I. 2001-0100355 F - ALLOCATION DE RETRAITE ET REER Income Tax Act - Section 146 - Subsection 146(5.1) retiring allowance could be contributed both to the RRSP of the contributor’s spouse within the s. 146(5.1) contribution limit and to the contributor’s own RRSP using s. 60(j.1)

Pages