Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
1999-12-10 18 October 1999 Internal T.I. 9905377 F - ALLOCATION FRAIS DE DEPLACEMENT Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) if per kilometre allowance is unreasonable, total allowance is included in income
15 November 1999 External T.I. 9907215 F - STAGES INTERNATIONAUX DE L'ACDI Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(iii) meaning of a special allowance
26 October 1999 Internal T.I. 9913080 F - EXPROPRIATION Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition - Paragraph (d) costs of moving equipment assimilated to proceeds in respect of expropriation of plant
4 June 1999 Internal T.I. 9913100 F - APPLICATION 40(2)G)(II), 20(1)C) ET 18(1)A) Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) s. 12 requires the recognition of income even where the associated expenses were not incurred for profit
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose s. 18(1)(a) can deny an expense not incurred in an activity with a reasonable expectation of profit even where s. 12 specifically requires inclusion of the smaller gross income
4 June 1999 Internal T.I. 9913120 F - APPLICATION DE 20(1)F) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) redemption proceeds of stock option were deductible under s. 20(1)(f)
29 June 1999 Internal T.I. 9913180 F - AFFACTURAGE Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables sale of trade receivables to securitization vehicle generally on income account
16 September 1999 Income Tax Severed Letter 9913210 F - SYNDICAT DE COPROPRIÉTAIRES Income Tax Act - Section 248 - Subsection 248(1) - Corporation syndicate of co-owners is a corporation
Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) potential for distribution of income on its liquidation would not cause a syndicate of co-owners to not qualify as an NPO
24 June 1999 Internal T.I. 9913420 F - BFT- HONORAIRE DE GESTION Income Tax Regulations - Regulation 5202 - Cost of Labour cost of labour included only the salary component of managementco fees
24 June 1999 Internal T.I. 9913480 F - BIA REGROUPEMENT D'ENTREPRISE Income Tax Regulations - Schedules - Schedule II - Class 14.1 fees incurred in acquiring a similar business may be eligible capital expenditures
27 July 1999 Internal T.I. 9913490 F - LOCATION- MONTANT REÇU- JUGEMENT Income Tax Act - Section 9 - Compensation Payments amount received for a release could constitute proceeds of disposition of a right
27 September 1999 Internal T.I. 9916367 F - REMISE DE DETTE/PRET ETUDIANT Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) partial loan repayments where students achieved their degrees were prizes for achievement
Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount partial repayment of loans under a Quebec government program did not represent loan forgiveness (the lenders themselves did not forgive the loans)
29 June 1999 APFF Roundtable Q. 12, 9913090 F - DÉDUCTIBILITÉ DES INTÉRÊTS Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest non-deductible where there is no expectation of profit from the investment
8 June 1999 APFF Roundtable Q. 51, 9913160 F - PAIEMENT INCITATIF À LA LOCATION Income Tax Act - Section 9 - Timing Canderel indicates that the onus is on CCRA to demonstrate that its income computation method provides a more accurate picture/ those in identical fact situations to Canderel can currently deduct their unamortized TIP balance
1999-11-26 1 September 1999 External T.I. 9829805 F - CRISTALLISATION G EN CAP ET DISPOSITION Income Tax Act - Section 248 - Subsection 248(1) - Disposition exchange of shares of a corporation for shares of the same class was not a disposition
18 June 1999 Internal T.I. 9830217 F - FRAIS MEDICAUX-AGENCE D'ADOPTION Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) whether the portion of adoption fees for mandatory medical examination before arrival in Canada qualified
1 October 1999 Internal T.I. 9900727 F - PRESTATION DE RETRAITE VS PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Support Amount payment of ½ of his pension payments to his ex-spouse did not constitute support
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) payment of ½ of his pension payments to his ex-spouse were excluded from the taxpayer’s income under s. 56(1)(a)(i)
9 September 1999 Internal T.I. 9902717 F - DÉDUCTIBILITÉ D'UN REMBOURSEMENT DE DETTE Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) claims against co-owners for their failure to pay their share on defaulted assumed mortgage were not acquired for an income-producing purpose
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) no disposition and, therefore, no capital loss on paying under residual covenant on assumed but defaulted mortgage
20 October 1999 External T.I. 9904125 F - TRANSFORMATION D'ARTICLES DESTINÉS À LA VENTE Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits subcontractor’s manufacturing of parts out of materials owned by the car manufacturer could qualify
14 October 1999 External T.I. 9904465 F - CORP. UTILISEE PAR MEMBRES PROF. LIBERALE Income Tax Act - Section 9 - Nature of Income professional practice can be carried on through professional corporation if permitted by professional governing body
25 October 1999 External T.I. 9908775 F - RESIDENCE-ACTIF ADMISSIBLE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership - Paragraph (a) - Subparagraph (a)(i) farming partnership residence for on-call partners is used in the farming business
14 October 1999 External T.I. 9910085 F - ASSURANCE-VIE Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) CRA concerns where credit to CDA is not reduced by ACB
25 October 1999 External T.I. 9910355 F - TRANSFORMATION D'ARTICLES DESTINÉS À LA VENTE Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits subcontractor to goods vendor doing processing of such goods can qualify
18 June 1999 External T.I. 9912755 F - PENSION ALIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day agreement to extend support obligation triggered a commencement day
16 September 1999 Internal T.I. 9913380 F - CONF. CONS. TECHNIQUES - COÙT EN CAPITAL Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(c) personal vehicle use by employee is business use by the employer, whereas personal use by shareholder is not
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) apportionment of prescribed amount is required where the vehicle is used in part personally by a shareholder (employee personal use is business use)
16 September 1999 Internal T.I. 9913390 F - CONF. CONS. TECHNIQUES - REVENU NON DÉCLARÉ Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E RC cannot treat unreported prior years as including CCA claims
25 May 1999 Income Tax Severed Letter 9913410 F - VALEUR DÙN CAAF Income Tax Act - Section 68 where saw mill sold and timber supply agreement relinquished, s. 68(1) could apply to allocate a portion of such proceeds to such agreement
25 May 1999 External T.I. 9913450 F - CPCMC - CRITÈRES ENTREPRISES PRINCIPALES Income Tax Act - Section 125.4 - Subsection 125.4(1) - Qualified Corporation listing of criteria to be a qualified corporation
Income Tax Regulations - Regulation 1106 - Subsection 1106(1) - Excluded Production - Paragraph (a) - Subparagraph (a)(iii) potential ability to transfer production to Canadian parent
15 October 1999 External T.I. 9921125 F - CRÉATION D'UN LOGO -DON Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts artist’s creation of a logo was a service rather than a transfer of property
5 October 1999 External T.I. 9922285 F - RAP SENS DU MOT CONJOINT Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) ownership of home by separated spouse disqualifies the taxpayer
19 October 1999 Internal T.I. 9922707 F - OSBL CHANGEMENT DE STATUE Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(l) NPO can qualify under s. 149(1)(l) even if it was originally organized for profit
29 August 1999 Income Tax Severed Letter 9923446 F - ACTIONS ACCRÉDITIVES-MODIFICATION DU PBR Income Tax Act - Section 66.3 - Subsection 66.3(3) flow-through shares have deemed nil cost even if CEE deduction subsequently denied
6 October 1999 Internal T.I. 9925307 F - CONVENTION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retirement Compensation Arrangement general discussion
1999-11-12 12 October 1999 External T.I. 9902655 F - FRAIS DE GARDE D'ENFANTS Income Tax Act - Section 63 - Subsection 63(3) - Child Care Expense fees paid to a school once the child has reached mandatory school age generally are not child care expenses

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