Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2000-01-07 16 December 1999 External T.I. 9907425 F - REVENU D'ENTREPRISE - INDIEN Other Legislation/Constitution - Federal - Indian Act - Section 87 business of transporting Indians between the reserve and off-reserve health-care facilities was exempted
15 December 1999 External T.I. 9907635 F - REVENU GAGNÉ - AUGMENTATION ARTIFICIELLE Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) CCRA monitors whether there has been an artificial creation of safe income through not claiming CCA
5 November 1999 Internal T.I. 9907667 F - PROGRAMME DE FORMATION ADMISSIBLE Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program - Paragraph (a) employment insurance, and EI educational assistance, were not excluded and excluded, respectively
16 December 1999 External T.I. 9908945 F - REMBOURSEMENT DE FRAIS RELATIFS AUX ETUDES Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) reimbursement by new employer of tuition fees previously incurred by employee was taxable under s. 6(1)(a) or 6(3)
21 December 1999 External T.I. 9909645 F - PARTAGE TERRAINS, IMMEUBLE Income Tax Act - Section 248 - Subsection 248(21) - Paragraph 248(21)(c)) properties must have been subdivided in contemplation of the partition
9 December 1999 External T.I. 9910665 F - DETTE D'UN ACTIONNAIRE-HABITATION Income Tax Act - Section 15 - Subsection 15(2.4) - Paragraph 15(2.4)(e) loan to sole shareholder/employee received qua shareholder unless such a loan could be demonstrated to be received by employees
Income Tax Act - Section 15 - Subsection 15(2.4) - Paragraph 15(2.4)(f) reasonable repayment term determined by reference to ordinary business practice
12 October 1999 Internal T.I. 9912347 F - FORFAITAIRE FIN DE LA LOCATION Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense excess kilometre charges at conclusion of lease were not deductible until then
Income Tax Act - Section 67.3 - Paragraph 67.3(c) excess kilometre charges at conclusion of lease would have same effect under s. 67.3 formula as if allocated evenly over the lease
22 December 1999 External T.I. 9912615 F - PROGRAMME D'INVALIDITE DE LONGUE DUREE Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) where employer pays the premiums but treats them as salary, the plan qualifies as an employee-pay-all plan; similarly if the premiums paid are taxable benefits
26 October 1999 Income Tax Severed Letter 991332B F - CLAUDE DE GARANTIE Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) warranty clause does not by itself cause a sales receipt to not be income
29 October 1999 Internal T.I. 9915337 F - PROGRAMME DE FORMATION ADMISSIBLE Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program - Paragraph (a) EI training allowances, but not EI benefits, were excluded
9 November 1999 Internal T.I. 9917947 F - RESIDENCE DES MEMBRES DU CLERGE Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) priest who was a chaplain satisfied the requirements
18 November 1999 Income Tax Severed Letter 9919576 F - REMISE PARTIELLE - 80 Income Tax Act - Section 248 - Subsection 248(27) ss. 248(7) and 80 applied at the time of agreeing to a partial debt settlement
Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount new s. 80 rules now applied to a partial debt forgiveness at the time of the settlement agreement
22 September 1999 Income Tax Severed Letter 9920910 F - LLC - DÉDUCTIBILITÉ DES INTÉRÊTS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) treatment of interest on money borrowed to acquire LLC units turns on whether they are common or preferred shares
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 23 November 1999 External T.I. 9900695 F - EXPLOITE MEME ENTREPRISE Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) 11-month cessation of operations by target before its acquisition likely would extinguish its losses
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)
23 November 1999 External T.I. 9904975 F - CREDIT D'IMPOT POUR ETUDES Income Tax Act - Section 118.6 - Subsection 118.6(1) - Designated Educational Institution - Paragraph (a) - Subparagraph (a)(ii) general high-school-type education does not constitute vocational training

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