Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2001-02-16 12 February 2001 External T.I. 2000-0056905 F - ALLOCATION POUR FRAIS DE STATIONNEMENT Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose allowances for no-receipt parking were generally deductible
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) allowances for commuting to successive construction sites were not for travel in the course of employment
6 February 2001 External T.I. 2000-0059485 F - DBFT - Sous-traitants - textile Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits goods can be physically manufactured abroad if Canco exercises extensive involvement and control over the content, design, and physical qualities of the goods from inception to completion
Income Tax Regulations - Regulation 5202 - Qualified Activities no cost of labour or qualifying activities if the core manufacturing activities are outside Canada
6 February 2001 External T.I. 2000-0060435 F - Exclusion des frais d'exploration Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (k.1) ATV was excluded
29 January 2001 Internal T.I. 2000-0062827 F - Placement admissible - conjoint de fait Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Connected Shareholder RRSPs of two individuals prior to their marriage were not necessarily not dealing at arm’s length
5 February 2001 External T.I. 2001-0067135 F - Dividend-General Income Tax Act - Section 84.1 - Subsection 84.1(1) application of s. 84.1 on sale of 50% shareholding to corporation owned by the transferor and his spouse
2001-02-02 16 January 2001 External T.I. 2000-0009685 F - avantage - usage par l'actionnaire Income Tax Act - Section 15 - Subsection 15(1) no s. 15(1) benefit where aircraft of corporation is used for the personal benefit of its sole shareholder, who bears the cost and expenses
22 January 2001 External T.I. 2000-0012025 F - cotisations sociales Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax Belgian social security contributions imposed on Belgian director’s fees (treated as self-employed earnings for Belgian purposes) were non-business-income taxes
7 December 2000 Internal T.I. 2000-0023207 F - OPTIONS D'ACHAT D'ACTIONS Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) s. 7(3)(b) does not preclude employer from deducting amounts paid out under stock option agreement
18 December 2000 Internal T.I. 2000-0023807 F - IMPORT DE LA PARTIE 1.3 COMPENSATION Income Tax Act - Section 181 - Subsection 181(3) loan set-off in accordance with GAAP reduced the taxpayer’s capital
8 November 2000 Internal T.I. 2000-0025167 F - RECONNAISSANCE DU REVENU D'INTERET Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) interest paid to the taxpayer on cancelling an assessment was income to the subrogated insurer
General Concepts - Ownership interest on tax refund was income to the insurer who had been subrogated to the taxpayer’s claim against CRA
23 October 2000 Internal T.I. 2000-0027477 F - ALLOCATION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance exclusion for replacement employment at an alleged affiliated employer was not applied
24 January 2001 External T.I. 2000-0028895 F - Contingent de versement/perte Income Tax Act - Section 149.1 - Subsection 149.1(1) - Disbursement Quota investment of amount or depreciation in the investment is not the expending of an amount
15 January 2001 External T.I. 2000-0033765 F - DEDUCTION DES INTERETS/RACHATS D'ACTIONS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) policy re loans to distribute PUC or accumulated profits, or redeem
17 January 2001 External T.I. 2000-0041375 F - REMBOURSEMENT DE PRIME/ENFANT INFIRME Income Tax Act - Section 146 - Subsection 146(8.1) s. 146(8.1) election and s. 60(l)(ii) transfer re bequest of RRSP to adult disabled child’s RRSP
1 February 2001 External T.I. 2000-0041535 F - Actionnaire rattaché / droit de 1er refus Income Tax Regulations - Regulation 4901 - Subsection 4901(2.2) - Paragraph 4901(2.2)(b) comments in IT-419R, para. 13 re shotgun clauses etc. are applicable to Reg. 4901(2.2)(b)
23 January 2001 External T.I. 2000-0045445 F - DETTE D'UN ACTIONNAIRE - FIDUCIE Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(b) where Opco makes a loan to a wholly-owned trust, the shareholder of Opco does not deal at arm’s length with the trust
Income Tax Act - Section 15 - Subsection 15(2) where Opco makes a loan to a wholly-owned trust, the loan is included in the trust’s income assuming that an Opco shareholder did not deal with it at arm’s length with Opco
1 December 2000 Internal T.I. 2000-0048437 F - PAIEMENTS ANTERIEURS Income Tax Act - Section 56.1 - Subsection 56.1(3) agreement must show a clear intent to amend the agreement to include the prior payments
19 January 2001 Internal T.I. 2000-0049187 F - PENSION ALIMENTAIRE-ACCORD SUBSEQUENT Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day - Paragraph (b) - Subparagraph (b)(iii) amendment to support amount triggered a commencement day
25 January 2001 External T.I. 2000-0049565 F - PAIEMENTS FORFAITAIRES RETROACTIFS Income Tax Act - Section 110.2 - Subsection 110.2(1) - Qualifying Amount retiring allowance could qualify if paid pursuant to settlement agreement of an action, and could be specified portion if related to prior year’s lost income
31 January 2001 External T.I. 2000-0050465 F - TRANSFERT D'UN BIEN AGRICOLE Income Tax Act - Section 73 - Subsection 73(3) immediately “before the transfer” referenced a period of less than three years
2001-01-19 5 January 2001 External T.I. 2000-0010905 F - Valuation - Freeze shares Income Tax Act - Section 86 - Subsection 86(1) right to retract freeze preferred shares must not be fettered
General Concepts - Fair Market Value - Shares requirement to seek consent detracts to retraction detracts from FMV of freeze preferred shares
4 January 2001 External T.I. 2000-0047605 F - FRAIS DE DIVERTISSEMENT Income Tax Act - Section 67.1 - Subsection 67.1(1) attending shows in order to identity artist recruits might be entertainment
Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) s. 67.1(2)(a) exception unavailable for tickets to shows attended to recruit artists
10 January 2001 External T.I. 2000-0049585 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) annual payment cap on interest until maturity did not preclude deductibility
5 January 2001 Internal T.I. 2000-0053767 F - IT-92R2 Paragraphe 1 Income Tax Act - Section 9 - Timing progress method per IT-92R2 could be used by supplier of kitchen equipment if installed by it pursuant to the building construction plans and title thereto thereupon vested in the building owner
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) construction holdbacks not receivable until approved for release
2001-01-05 19 December 2000 Internal T.I. 2000-0009277 F - Fosse pour traitement du fumier Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) manure pit was a Class 1(q) structure
Income Tax Act - Section 30 costs of drainage system for farmer’s manure pit were deductible
19 December 2000 External T.I. 2000-0035685 F - RPA TRANSFER AU DECES Income Tax Act - Section 147.3 - Subsection 147.3(7) deceased member can have had more than one qualifying spouse or partner
14 September 2000 Internal T.I. 2000-0035797 F - ALLOCATION DE SEJOUR Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(iii) representation allowance must cover additional expenses from being posted abroad
Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) purpose of s. 6(6)/ meaning of “temporary” duties and “maintained” re foreign internship
19 December 2000 Internal T.I. 2000-0049197 F - DEDUCTIBILITE DES INTERETS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on money borrowed to acquire a mutual fund unit or common share that can only yield capital gains is not deductible
15 December 2000 External T.I. 2000-0049645 F - CHANGEMENT PARTIEL D'USAGE RESIDENCE Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) basement rented out on a cost-recovery basis to husband’s corporation likely did not represent an income-producing use
15 December 2000 Internal T.I. 2000-0052397 F - PRESTATIONS RETROACTIVES DE LA CSST Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) worker’s compensation received by the mother as compensation to the child was included in her income on receipt
19 December 2000 Internal T.I. 2000-0054467 F - VALEUR DU DON D'UNE POLICE D'ASSURANCE Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gift amount of a life insurance policy to be assigned

Pages