Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-05-25 10 May 2001 Internal T.I. 2001-0065727 F - AVANTAGE - FONCTIONNEMENT AUTOMOBILE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(l) s. 6(1)(l) can include a benefit relating to the operation of an automobile in the income of an employee of a member of a partnership
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(y) unlike standby benefit, operating benefit for an employee of a partnership member is addressed by s. 6(1)(l)
10 May 2001 Internal T.I. 2001-0065817 F - WEB SITE - SITE INTERNET Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(i) general (non-software or computer) capital expenditures on website development generally includible in Class 8(i)
10 May 2001 Internal T.I. 2001-0065827 F - FINES + PENALTIES - INTÉRETS ET PÉNALITÉS Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(t) s. 18(1)(t) enacted for greater certainty
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose criteria of public policy and inevitability in IT-104R2 no longer applicable re fines and penalties/ provincial interest and penalties are non-deductible
10 May 2001 Internal T.I. 2001-0066047 F - CRITERES RÉSIDENCES D'ACCUEIL Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) taxpayer must ordinarily reside at the place as a principal residence
10 May 2001 Internal T.I. 2001-0066067 F - SOCIÉTÉ DE PERSONNES - PARTAGE REVENU Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) salary paid to partners is treated as drawings and is an ACB deduction rather than an income deduction
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) partner salaries are non-deductible
10 May 2001 Internal T.I. 2001-0066107 F - TABLE RONDE - QUESTION 32 Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) parenthetical exclusion prevents double taxation to a NAL transferee otherwise arising from the deemed high capital cost under s. 13(7)(e)(iii) but with no ACB step-up under s. 69(1)(b)
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) absence of cost step-up to s. 69(1)(b) transferee does not produce a capital gain on subsequent disposition due to such gain being recapture pursuant to s. 13(7)(e)(iii)
25 May 2001 External T.I. 2001-0067415 F - CONSOLIDATION DE PERTES Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) related-person loss transfer transactions must be commercially reasonable to satisfy s. 20(1)(c)
Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) CCRA loss consolidation policy is available where Profitco’s income is FAPI/ requirements re transactions being commercially reasonable
15 May 2001 External T.I. 2001-0071085 F - FABRICATION AU CANADA Income Tax Regulations - Regulation 5202 - Qualified Activities product development, design and conception work was part of the manufacturing of those products, but such manufacturing took place outside Canada
29 May 2001 External T.I. 2001-0075245 F - SOCIETE DE GESTION DE PENSION Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(i) s. 149(1)(o.2)(i) corporation can be incorporated for the administration of more than one RPP – but cannot be incorporated to provide management services to other RPPs
Statutory Interpretation - Interpretation Act - Subsection 33(2) reference to administration of one pension plan included two or more
23 May 2001 External T.I. 2001-0077855 F - PLACEMENT ADMISSIBLE REER Income Tax Regulations - Regulation 4900 - Subsection 4900(8) did not extend to services rendered in connection with the company’s incorporation
16 May 2001 External T.I. 2001-0080495 F - OPTION D'ACHAT D'ACTIONS Income Tax Act - Section 7 - Subsection 7(1.1) CCPC status tested at time of stock option agreement
2001-05-11 27 April 2001 External T.I. 2000-0057055 F - INTERETS/OBLIGATIONS A COUPONS DETACHES Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(b) application of Reg. 7000(2)(b) to acquisition of bond stripped of interest coupons
18 April 2001 External T.I. 2001-0074995 F - Indemnité journalière de grossesse de France Income Tax Act - Section 3 - Paragraph 3(a) French maternity allowances were taxable
2001-04-27 12 April 2001 External T.I. 2000-0050655 F - ASSURANCE MUTILATION/INVALIDITE Income Tax Act - Section 148 - Subsection 148(9) - Disposition - Paragraph (h) disability benefits under a policy providing life and accidental death and dismemberment insurance could be non-taxable
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account personal injury amounts received pursuant to life insurance policy not added to CDA
23 March 2001 Internal T.I. 2000-0056097 F - Roulement interne Income Tax Act - Section 84 - Subsection 84(1) s. 84(1) deemed dividend where individual’s low-PUC common shares are exchanged with the corporation for high-PUC preferred shares and there is an s. 85(1) agreed amount at FMV
17 April 2001 External T.I. 2000-0056455 F - AVANTAGE IMPOSABLE-EMPLOYE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) the distribution of employer shares to employees as beneficiaries of a discretionary trust is a s. 6(1)(a) benefit if it has the slightest connection to their employment
2 February 2001 Internal T.I. 2000-0058127 F - Convention d'émission d'actions Income Tax Act - Section 7 - Subsection 7(2) s. 7(2) could apply if shares were held by the employer for later acquisition by the employee
19 April 2001 Internal T.I. 2001-0069067 F - PENSION ALIMENTAIRE ACCORD ECRIT Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount submitted documents were not a written agreement
17 April 2001 External T.I. 2001-0074915 F - Fonds commun de placement - Disposition Income Tax Act - Section 248 - Subsection 248(1) - Disposition change in taxable account through which MFT units are held does not entail their disposition
10 April 2001 External T.I. 2001-0078035 F - RAP PERSONNE DIVROCEE Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) divorced individual was eligible notwithstanding ownership during their marriage of home by ex-spouse
2001-04-13 12 March 2001 Internal T.I. 2000-0037637 F - Partie 1.3 Aide gouvernementale/Surplus Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(a) government grants were other surplus
Income Tax Act - Section 181 - Subsection 181(3) grants deducted from carrying value of capital assets and disclosed in the notes were reflected on the balance sheet
15 September 2000 Internal T.I. 2000-0038337 F - RETENUES A LA SOURCE-REMUNERATION Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) directors’ settlement of liability for unpaid remuneration of bankrupt corporation was subject to s. 153(1)(a) withholding
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration directors’ settlement payment of liability for unpaid employee remuneration of bankrupt corporation was subject to source deductions as “remuneration”
9 February 2001 Internal T.I. 2000-0055757 F - ALLOCATION PERIODIQUE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount amounts paid to ex-wife each time she took the 2 children were not allowances since there was no regularity to the visits
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) s. 118(1)(b) credit available where sporadic amounts required to be paid to ex-wife when the children visited her did not qualify as support amounts
5 April 2001 External T.I. 2000-0058445 F - Entreprise de gestion et REATB Income Tax Act - Section 95 - Subsection 95(1) - Investment Business a management services business was not an investment business
Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(b) s. 95(2)(b) application to provision of services to rental partnerships
29 March 2001 External T.I. 2001-0064585 F - Application de 13(21.2)e)(iii)(C) Income Tax Act - Section 13 - Subsection 13(21.2) - Paragraph 13(21.2)(e) - Subparagraph 13(21.2)(e)(iii) - Clause 13(21.2)(e)(iii)(C) s. 13(21.2)(e)(iii)(C) is not engaged when the affiliated transferee becomes a non-resident
26 March 2001 External T.I. 2001-0070165 F - Conventions fiscales et lois provinciales Treaties - Income Tax Conventions - Article 12 Canada will not reduce its withholding rate to 0% to make room for Quebec taxes imposed on the same property income
Treaties - Income Tax Conventions - Article 2 Canada has no obligation to absorb Quebec taxes imposed on property income with treaty-reduced withholding
28 March 2001 External T.I. 2001-0070415 F - Interaction entre les articles 51 et 116 Income Tax Act - Section 51 - Subsection 51(1) on a s. 51 exchange, the corporation is considered to have acquired the exchanged shares at a cost equal to the PUC of the shares issued by it
Income Tax Act - Section 116 - Subsection 116(5) acquisition of the exchanged shares by the corporation on a s. 51 exchange at a cost equal to PUC of issued shares

Pages