Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
1999-08-06 16 July 1999 External T.I. 9821295 F - RÉCUPÉRATION D'AMORTISSEMENT Income Tax Act - Section 13 - Subsection 13(1) recapture is income from the business in which that asset was used
7 July 1999 Internal T.I. 9905067 F - DÉDUCTION POUR IMPÔT ÉTRANGER Income Tax Act - Section 126 - Subsection 126(1) - Paragraph 126(1)(a) maximum credit computed on a source-by-source basis
30 June 1999 Internal T.I. 9911197 F - ABANDON D'UN CAAF BSF CHICOUTIMI Income Tax Act - Section 13 - Subsection 13(21) - Timber Resource Property - Paragraph (a) - Subparagraph (a)(ii) TSFMA was a timber resource property notwithstanding that it was non-transferable
Income Tax Act - Section 68 sale proceeds were re-allocable under s. 68 to a timber licence notwithstanding no amount allocated to it in the arm’s length sale agreement and its non-transferability
Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition sale price could be allocated in part to timber permit of the vendor, even though that permit was extinguished rather than transferred on the sale
Income Tax Act - Section 248 - Subsection 248(1) - Disposition extinguishment of timber permit on the sale of a business constituted its disposition
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) sale price received as inducement to surrender a timber permit would be income under s. 12(1)(x), if not proceeds of a timber resource property
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) must be a person to whom the disposition was made
1999-07-23 15 July 1999 External T.I. 9819025 F - SOCIETES ASSOCIEES Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(d) a corporation deemed by s. 256(1.2)(d) to be owned 51% and 49% by 2 individuals was associated with a corporation each owned directly by them as to 42% each
Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(b) - Subparagraph 256(1.2)(b)(ii) two individuals deemed to own 51% and 49% of a CCPC’s shares were a controlling group under s. 256(1.2)(c) notwithstanding control by one individual alone
7 July 1999 External T.I. 9828165 F - TRANSFERT DE BIENS À UNE SOCIÉTÉ Income Tax Act - Section 74.4 - Subsection 74.4(2) taking back non-cumulative preferred shares may be indicative of a targeted main purpose
13 July 1999 External T.I. 9901535 F - PERTE EN CAPITAL - REPUTE NULLE Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) s. 40(2)(g)(ii) not satisfied on non-interest-bearing loan made to a sister corp
15 July 1999 External T.I. 9911175 F - EMPLOYÉ - ACTIONNAIRE UNIQUE -207.6(2) Income Tax Act - Section 207.6 - Subsection 207.6(2) an employee being the sole shareholder of the employer is insufficient to render s. 207.6(2) inapplicable
30 June 1999 External T.I. 9911555 F - CR POUR ACTIONNAIRE-DIRIGEANT Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement foregoing by a shareholder-officer of significant salary in exchange for an RCA contribution, may be an SDA
15 July 1999 External T.I. 9916165 F - RAP - VENTE DE LA PROPRIÉTÉ ACQUISE Income Tax Act - Section 146.01 - Subsection 146.01(3) no requirement to repay the RRSP or include the HBP balance in income when the qualifying home has been sold
1999-07-09 31 March 1999 External T.I. 9903655 F - CCA IMPRIMANTE LASER Income Tax Regulations - Schedules - Schedule II - Class 10 - Paragraph 10(f) laser printer could fall in para. 10(f)
9 June 1999 External T.I. 9828345 F - 2ND ACQUISITION OF LOAN BY NRO Income Tax Act - Section 133 - Subsection 133(8) - Non-Resident-Owned Investment Corporation - Paragraph (d) purchase of loan from the bank was not the making of a loan
24 June 1999 External T.I. 9830665 F - DIVIDENDE EN ACTIONS PRIV ET PAR BILLET Income Tax Act - Section 248 - Subsection 248(28) double taxation of s. 55(2) gain on dividend in kind avoided by excluding gain on subsequent sale of the dividended property
Income Tax Act - Section 52 - Subsection 52(1) cost of note increased only by the taxable capital gain recognized under s. 55(2) in respect of its issuance as a dividend in kind
Income Tax Act - Section 52 - Subsection 52(3) - Paragraph 52(3)(a.1) nil cost of preferred shares issued on dividend in kind by virtue of s. 52(3)(a.1) since deemed not to be a dividend by s. 55(2)
28 June 1999 External T.I. 9912585 F - ALLOCATION DE RETRAITE Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance whether transfer between two companies entails termination of employment turns on whether they are affiliated/ ordinary meaning of affiliated
30 June 1999 External T.I. 9912605 F - APPLICATION DE 56(11) À L'EMPLOYEUR Income Tax Act - Section 56 - Subsection 56(11) the recipient of the amount subject to s. 56(11) need not have held the employment, so that it could apply to an employer
1999-06-25 16 June 1999 Internal T.I. 9820677 F - DÉFINITION DU MOT STRUCTURE Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) dyke qualified as a structure
16 June 1999 External T.I. 9824635 F - TRANSFERT DE BIEN À UNE SOCIÉTÉ Income Tax Act - Section 74.4 - Subsection 74.4(2) main purpose test can encompass an unborn child or a future spouse
23 June 1999 Internal T.I. 9824657 F - ACDI - AIDE PROD. CINÉMATOGRAPHIQUE Income Tax Act - Section 125.4 - Subsection 125.4(3) amounts received from CIDA bifurcated between investment in production, and government assistance
21 June 1999 External T.I. 9829395 F - PRODUIT POLICE ASSURANCE INVALIDITE Income Tax Act - Section 70 - Subsection 70(5.3) no equivalent of s. 70(5.3) for disability proceeds
17 June 1999 Internal T.I. 9830837 F - PENSION ALLIMENTAIRE Income Tax Act - Section 56.1 - Subsection 56.1(4) - Commencement Day when payments, following a new temporary order, reverted back to being made in accordance with the older order, the new rules ceased to apply
28 May 1999 Internal T.I. 9830907 F - DGC - VENTE DE PIERRE Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Farm or Fishing Property farm quarry stone did not qualify as having been used in the farming business
Income Tax Regulations - Regulation 600 no late election under s. 110.6(19)
Income Tax Act - Section 248 - Subsection 248(1) - Property farm quarry stone qualified as immovable property
23 June 1999 External T.I. 9830985 F - USUFRUIT VS FIDUCIE AU CONJOINT AVANT 72 Income Tax Act - Section 248 - Subsection 248(3) distinction between usufructs and testamentary trusts under previous version
Income Tax Act - Section 108 - Subsection 108(1) - Pre-1972 Spousal Trust encroachment on the capital that occurred when spouse remarried disqualified the trust from being a "pre-1972 spousal trust"
21 June 1999 Income Tax Severed Letter 9833666 F - ENTENTES DE COMMANDITE - FILM Income Tax Act - Section 125.4 - Subsection 125.4(1) - Assistance amounts received under sponsorship agreements with government departments qualified as the referenced ss. 12(1)(x)(iii) or (iv) amounts
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) amounts would be described in s. 12(1)(x) even if accounted for by recipient as s. 9 income
15 June 1999 External T.I. 9902745 F - COOPÉRATIVE DE TRAVAILLEURS Income Tax Act - Section 136 - Subsection 136(2) workers’ cooperative qualifies as a cooperative corporation
Income Tax Act - Section 15 - Subsection 15(2.4) - Paragraph 15(2.4)(c) exception in paragraph 15(2.4)(c) could apply to a loan made to acquire shares (units) of a cooperative
23 June 1999 Internal T.I. 9909067 F - GAIN SUR RÈGLEMENT DE DETTE - DATE Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount - Element B - Paragraph B(a) no settlement of debt if partial repayment without novation
21 June 1999 External T.I. 9909465 F - CATÉGORIE 6 Income Tax Regulations - Schedules - Schedule II - Class 6 - Paragraph (a) - Subparagraph (a)(vii) “footings” has its construction-industry meaning
18 June 1999 Internal T.I. 9910827 F - ABANDON D'UN CAAF Income Tax Act - Section 248 - Subsection 248(1) - Disposition payment to induce the surrender of Quebec Timber Supply and Forest Management Agreement and related annual permits constituted proceeds of disposition
Income Tax Act - Section 13 - Subsection 13(21) - Timber Resource Property - Paragraph (a) - Subparagraph (a)(ii) Quebec Timber Supply and Forest Management Agreement and related annual permits constituted a timber resource property

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