Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-01-07 11 July 1999 External T.I. 9920950 F - INTÉRÊT SUR PRÊT PARTICIPATIF Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) interest not deductible under s. 20(1)(e)
7 October 1999 Internal T.I. 9920970 F - RÉPARTITION DE BIENS Income Tax Act - Section 159 - Subsection 159(3) interim distributions before clearance certificate are permitted, but at the executor’s risk
31 August 1999 Income Tax Severed Letter 9921010 F - AUGMENTATION SENSIBLE DE PARTICIPATION
4 August 1999 External T.I. 9921050 F - ÉVALUATION DES ACTIONS AU DÉCÈS Income Tax Act - Section 70 - Subsection 70(5.3) s. 70(5.3) applicable even where policy beneficiary of policy taken out by corporation is one of its creditors
23 December 1999 External T.I. 9923785 F - BIENS AGRICOLES ADMISSIBLES Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) no disposition when switch from farming to rental use
16 December 1999 External T.I. 9925755 F - COMMUNAUTÉ DE BIENS - RÈGLE D'ATTRIBUTION Income Tax Act - Section 248 - Subsection 248(23.1) - Paragraph 248(23.1)(b) application of s. 248(23.1)(b) to shares acquired by the deceased spouse pursuant to the partition of the community of property on her death engaged s. 74.2(1)
Income Tax Act - Section 74.2 - Subsection 74.2(1) application of s. 248(23.1)(b) to partition on death of community of property caused s. 74.2(1) to apply to the resulting shares received by the estate of the deceased spouse
22 December 1999 External T.I. 9929685 F - DEFINITION FIDUCIE PERSONNELLE Income Tax Act - Section 108 - Subsection 108(7) - Paragraph 108(7)(b) contributions to inter vivos trust by settlor and his wife and son did not cause it to cease to be a personal trust
9 December 1999 Income Tax Severed Letter 9931576 F - AVANTAGES IMPOSABLES - VETEMENTS Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) clothing purchased for an employee qualifies as a Class 8 asset acquired for an income-producing purpose
2 September 1999 APFF Roundtable Q. 1, 9920900 F - IMMIGRANT - OPTION D'ACHAT D'ACTIONS Income Tax Act - Section 128.1 - Subsection 128.1(10) - excluded right or interest - Paragraph (c) stock option rights granted to American by US employer were excluded rights when he immigrated
Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) s. 7 applies to exercise in Canada of stock option that was granted and received outside Canada
31 August 1999 APFF Roundtable Q. 3, 9920920 F - RAPATRIEMENT DU CAPITAL D'UNE LLC Income Tax Act - Section 90 - Subsection 90(1) LLC return of subscription treated as PUC distribution
Income Tax Act - Section 90 - Subsection 90(3) return by LLC of unit subscription to unitholder treated as a PUC distribution
7 October 1999 APFF Roundtable Q. 8, 9920960 F - CATÉGORIE DE BÉNÉFICIAIRES Income Tax Act - Section 104 - Subsection 104(2) “class of beneficiaries” interpreted in accordance with its ordinary meaning/ s. 104(2) criteria
30 August 1999 APFF Roundtable Q. 11, 9920980 F - LEGS À UNE FONDATION Income Tax Act - Section 118.1 - Subsection 118.1(5) no gift immediately before death to a foundation if it has not yet been created
20 August 1999 APFF Roundtable Q. 13, 9920990 F - OPA ET ACTIONS PRIVILIÉGIÉES IMPOSABLES Income Tax Act - Section 248 - Subsection 248(1) - Taxable Preferred Share - Paragraph (f) - Subparagraph (f)(ii) take-over bid at an offer price in excess of the pre-bid market price does not necessarily establish an (f)(ii) FMV excess
2 September 1999 APFF Roundtable Q. 14, 9921000 F - MOMENT DE DETERMINATION DU REVENU PROTEGE Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time presence of unrelated minority shareholder at time of drop-down transaction triggered a s. 55(3)(a)(ii) increase in direct interest and thus a safe-income determination time
17 August 1999 APFF Roundtable Q. 20, 9921060 F - SOCIÉTÉ BÉNÉFICIAIRE D'UNE FIDUCIE Income Tax Act - Section 186 - Subsection 186(4) - Paragraph 186(4)(a) addition of s. 251(1)(b) caused a corporate beneficiary of personal trust to be related under ss. 186(2) and 186(4)(a) to dividend payer respecting dividend designated to it under s. 104(19)
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(b) addition of s. 251(1)(b) caused a corporate beneficiary of personal trust to be related under ss. 186(2) and 186(4)(a) to a trust-controlled corporation paying a dividend to the trust
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) no CDA addition re dividend designated to CCPC as a taxable capital gain under s. 104(21)
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) s. 104(19) dividend can come out of safe income
1999-12-24 1 December 1999 External T.I. 9902255 F - PROGRAMMME ALLOCATION-LOGEMENT Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) monthly allowances under the Quebec Shelter Allowance Programs came within s. 56(1)(u)
1 December 1999 External T.I. 9908225 F - BIEN AMORTISSABLE TRANS. AU CONJOINT Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) capital cost maintained at historical amount on spousal transfer notwithstanding s. 119.6(19) step-up
7 December 1999 External T.I. 9924335 F - ACTIVITÉS DE FABRICATION ET TRANSFORMATION Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits each associated corporation in the production chain could treat its transformative activities for sale to the next entity as qualifying/ Crown Tire generally preferred to Stowe-Woodward
Income Tax Regulations - Regulation 5202 - Cost of Labour work normally done by contractors cannot qualify as cost of labour
1 December 1999 External T.I. 9927575 F - RENONCIATION A UN DIVIDENDE Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation dividend waiver does not entail forgiveness of a commercial debt obligation
29 November 1999 External T.I. 9928805 F - BONI VERSE D'UN REER OUR UN FEER Income Tax Act - Section 146 - Subsection 146(8) bonus on stock-market linked debt would not be a benefit to the annuitant
Income Tax Act - Section 146 - Subsection 146(1) - Premium bonus on stock-market linked debt would not be a premium
Income Tax Act - Section 146.3 - Subsection 146.3(3) - Paragraph 146.3(3)(b) bonus on stock-market linked debt would not be a gift

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