Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-04-13 28 March 2001 External T.I. 2001-0070415 F - Interaction entre les articles 51 et 116 Income Tax Act - Section 54 - Adjusted Cost Base a corporation acquires shares in its capital on a s. 51 exchange at a cost equal to the PUC of the shares issued therefor
Income Tax Act - Section 116 - Subsection 116(6) - Paragraph 116(6)(a) s. 116(6)(a) does not apply to shares acquired by Canco on a s. 51 exchange of Canco shares
26 March 2001 External T.I. 2001-0070585 F - Interaction entre Convention Canada-US et LIR Treaties - Income Tax Conventions - Article 13 Art. XIII(5) of Canada-US treaty applies to disposition of Amalco shares that were exchanged on the amalgamation for shares subjected to a deemed disposition under s. 128.1(4)(b)
2 March 2001 Internal T.I. 2001-0070687 F - REGIME D'ASSUR. MEDICAMENTS DU QUE. Income Tax Act - Section 118.2 - Subsection 118.2(1) unlike Quebec, prescription drug premiums for a year are not recognized until their payment
29 March 2001 External T.I. 2001-0071825 F - Application de 132(6) et 132(6.1) Income Tax Act - Section 132 - Subsection 132(6.1) if trust did not have 150 beneficiaries by the 90th-day deadline, it can only qualify prospectively as a MFT after satisfying the conditions
30 March 2001 Internal T.I. 2001-0074087 F - DEPENSES POUR SITE WEB Income Tax Regulations - Schedules - Schedule II - Class 14.1 part of purchase price for existing website may be attributable to clientele and goodwill
2001-03-30 11 January 2001 Internal T.I. 2000-0037167 F - CLAUSE D'AJUSTEMENT DE PRIX Income Tax Act - Section 54 - Adjusted Cost Base post-closing indemnity payments received by purchaser reduced the ACB of its purchased shares
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) damages received by share purchaser reduced the ACB of its shares and were not a taxable capital gain
19 October 2000 Internal T.I. 2000-0047267 F - VERSEMENT PENSION PERIODE DETERMINEE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount monthly amounts paid to Madame might not be support amounts if not paid for her support
8 March 2001 External T.I. 2000-0048405 F - Usufruit sur immeuble en France Income Tax Act - Section 248 - Subsection 248(3) s. 248(3) and 75(2) subject bare owner to tax on rental income under Quebec usufruct/ the converse if a French usufruct
14 December 2000 Internal T.I. 2000-0057927 F - Bénéfices relatifs à des ressources Income Tax Regulations - Regulation 1204 - Subsection 1204(1) income or loss computed in accordance with the Act, so that book gain excluded
9 January 2001 Internal T.I. 2000-0058047 F - FRAIS JURIDIQUES Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees director’s legal fees incurred re his liability for unpaid corporate GST were non-deductible
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) debt of corporation to a director arising from his discharge of joint and several liability for unpaid taxes was not a debt acquired for income-producing purpose
26 March 2001 External T.I. 2000-0060185 F - Évaluation actions assurance-vie décès Income Tax Act - Section 70 - Subsection 70(5.3) allocation of CSV of corporate life insurance policy among different classes of life insurance shares
19 March 2001 External T.I. 2001-0063345 F - RS & DE - MANDATAIRE Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(E) organization did not qualify under s. 37(1)(a)(ii)(E) because it made disbursements only as agent
23 February 2001 External T.I. 2001-0066265 F - Salaire différé français Income Tax Act - Section 3 - Paragraph 3(a) receipt of “deferred salary,” pursuant to a right established by French legislation, as compensation for contribution to the family farm was not income
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) - Subparagraph (b)(ii) receipt of “deferred salary,” pursuant to a right established by French legislation, was not a pension given no previous employer-employee relationship
Income Tax Act - Section 248 - Subsection 248(1) - Property “deferred salary” right of farmer descendant was a debt
Treaties - Income Tax Conventions - Article 18 receipt of “deferred salary,” pursuant to a right established by French legislation, was not a pension given no previous employer-employee relationship
2 March 2001 External T.I. 2001-0069555 F - Dividendes - (U.S. spin-off) Income Tax Act - Section 86.1 - Subsection 86.1(2) detailed review of proposed s. 86.1
Income Tax Regulations - Regulation 201 - Subsection 201(2) T5 reporting obligation of broker also applies to s. 86.1 spin-off
2001-03-16 28 February 2001 External T.I. 2000-0016765 F - All or substantially all Income Tax Act - Section 54.2 CRA is prepared to issue rulings on the application of the all or substantially all test in s. 54.2, which is not necessarily a 90% of FMV test
Income Tax Act - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(f) - Subparagraph 110.6(14)(f)(ii) - Clause 110.6(14)(f)(ii)(A) all or substantially all test in s. 110.6(14)(f)(ii)(A) is generally but not always a 90% of FMV test
5 March 2001 Internal T.I. 2000-0040357 F - Déductibilité - utilisation inadmissable Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) proration method applied to determine what portion of sold MFT units reduced the acquisition loan rather than equity
5 March 2001 External T.I. 2000-0047755 F - REP - étudiant à temps partiel Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program two part-time programs cannot be consolidated
13 March 2001 External T.I. 2000-0051295 F - Placements admissibles - actions Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(c) treatment of transfer of employee convertible shares to RRSP and their exercise and distribution
28 February 2001 External T.I. 2000-0056175 F - RETENUES A LA SOURCE PAR UN SYNDICAT Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) damages received by a union re unpaid wages of the employer were subject to source deductions when paid by it to the employee, if it received the damages as the employee’s agent
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration source deductions applicable to payment of remuneration by someone other than the employer
1 March 2001 External T.I. 2001-0071175 F - Don de biens culturels - copropriété Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Cultural Gifts gift of undivided interest in a cultural property to a designated owner co-owner
15 February 2001 External T.I. 1999-0008405 F - Lien de dépendance Income Tax Act - Section 84.1 - Subsection 84.1(1) secured promissory note potentially could give rise to de facto control
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) holding of secured note for 80% of purchaser’s assets potentially could give rise to de facto control
2001-03-02 26 February 2001 External T.I. 2000-0017635 F - choix modifié et PBR rajusté Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(c.1) where expenses reducing ACB of transferred partnership interest were denied, automatic increase in agreed amount in statute-barred year of transfer under s. 85(1)(c.1)
22 February 2001 External T.I. 2000-0042795 F - Epargne indiciellle et JVM Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) no requirement to recognize interest on disposition of stock-index-linked term deposit
1 March 2001 External T.I. 2000-0050275 F - Remboursement de prime / enfant infirme Income Tax Act - Section 146 - Subsection 146(8.1) overview of rules for transfer of taxpayer’s RRSP on death to financially dependent child
5 February 2001 Internal T.I. 2000-0062927 F - Société civile française Income Tax Act - Section 96 French civil partnership is a partnership, not a corporation
2001-02-16 1 February 2001 External T.I. 2000-0008675 F - Avantage-société devenue imposable Income Tax Act - Section 15 - Subsection 15(1) inevitable s. 15(1) benefit when not-for-profit with surplus is converted to a share corporation and the members subscribe for shares
5 February 2001 External T.I. 2000-0032695 F - Convention fiscale Canada-France Treaties - Income Tax Conventions - Article 7 profits based consulting fee paid to French company with no PE in Canada was exempted under Art. 7 of the Canada-France treaty
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) - Clause 212(1)(d)(iii)(C) profits based consulting fee paid to French company came within s. 212(1)(d)(iii)(C)
6 February 2001 External T.I. 2000-0044095 F - Honoraires - retenue d'impôt non-résident Treaties - Income Tax Conventions - Article 7 management fees exempted from withholding by business profits article in Canada-US treaty
1 February 2001 External T.I. 2000-0049655 F - Transfert entre conjoints de crédit d'impôt Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Cultural Gifts credits from gifts of cultural property can be reallocated between spouses, but s. 69 gains cannot be reallocated

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