Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2018-12-12 5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 3, 2018-0765801C6 F - Tax on Split Income Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(c) - Subparagraph 120.4(1.1)(c)(ii) s. 120.4(1.1)(c)(ii) exclusion where investment portfolio business of spousal trust had been carried on directly by deceased husband
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 4, 2018-0765811C6 F - Tax on Split Income Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(D) no TOSI on net rental income of spousal trust on properties managed by son if excluded amounts
Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(c) - Subparagraph 120.4(1.1)(c)(ii) exclusion where rental portfolio of spousal trust was a directly-conducted business of deceased husband
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 5, 2018-0761561C6 F - Rachat de parts en cas d’invalidité Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) purpose of dividend is determined based on facts respecting the series
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 7, 2018-0761511C6 F - Rollover to spousal trust on death Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) tainting effect of the payment by a spousal trust of premiums on its policy on the lives of the children
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 8, 2018-0761541C6 F - HBP withdrawals straddling two calendar years Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(d) factors considering in extending period for making backdated withdrawals
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 10, 2018-0761551C6 F - Attribution rules and promissory note Income Tax Act - Section 74.5 - Subsection 74.5(2) - Paragraph 74.5(2)(b) accrued interest cannot be “paid” for s. 74.7 purposes by issuing a promissory note
General Concepts - Payment & Receipt promissory note could not be issued as payment in context of income attribution rules
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 11, 2018-0761571C6 F - Missing info on disposition of principal residence Income Tax Act - Section 54 - Principal Residence - Paragraph (c) CRA is only waiving penalties for late-filed principal residence dispositions for 2017 and 2016 returns
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) description of filing requirements
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 12, 2018-0761581C6 F - Foreign Tax Credits related to mutual funds Income Tax Act - Section 126 - Subsection 126(1) CRA is no longer requesting country-by-country breakdowns of income derived from mutual funds in its FTC audits
2018-11-28 17 September 2018 External T.I. 2018-0751571E5 F - Adjusted cost base of property Income Tax Act - Section 66.3 - Subsection 66.3(3) s. 66.3(3) does not apply to the cost of shares received on a ss. 85(2) and (3) wind-up of a flow-through share partnership
Income Tax Act - Section 85 - Subsection 85(3) - Paragraph 85(3)(f) operation of s. 85(3)(f) on wind-up of flow-through LP not affected by s. 63.3(3)
2018-10-17 27 June 2018 External T.I. 2018-0745681E5 F - Wind-up of a partnership Income Tax Act - Section 84 - Subsection 84(3) no s. 84(3) dividend on cancellation of preferred shares of Opco held by partnership on its wind-up into Opco
Income Tax Act - Section 98 - Subsection 98(5) s. 98(5) inapplicable on simultaneous dissolving transfer of partnership interests
Income Tax Act - Section 28 - Subsection 28(1) - Paragraph 28(1)(f) application of s. 28(1)(f) on partnership wind-up
2018-10-10 27 June 2018 External T.I. 2018-0742881E5 F - Royalties under Canada Petroleum Resources Act Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose Canadian Petroleum royalties generally deductible
2018-07-18 1 May 2018 External T.I. 2017-0709101E5 F - Travaux en cours Income Tax Act - Section 10 - Subsection 10(5) - Paragraph 10(5)(a) cost of professional practice WIP includes variable overheads and all related payroll costs, but not partner or shareholder-manager time
Income Tax Act - Section 10 - Subsection 10(4) - Paragraph 10(4)(a) WIP under a contingency fee basis generally has a nil value
Income Tax Act - Section 10 - Subsection 10(1) professionals' WIP excludes partner time but includes variable overhead
2018-06-27 6 April 2018 External T.I. 2018-0738871E5 F - Shareholder Income Tax Act - Section 15 - Subsection 15(2.6) s. 15(2) held in suspense until time period passes/s. 80.4(2) inclusion until s. 15(2) inclusion reverses such inclusion
Income Tax Act - Section 80.4 - Subsection 80.4(3) - Paragraph 80.4(3)(b) previous s. 80.4(2) inclusion is reversed when loan is included under s. 15(2)
2018-05-16 12 April 2018 External T.I. 2016-0640651E5 F - Swiss Pension Income Tax Act - Section 248 - Subsection 248(1) - superannuation or pension fund or plan Swiss vested benefits policy was a “superannuation or pension fund or plan”
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) a Canadian resident was not subject to Canadian tax on income accruing in a Swiss vested benefits policy
2018-05-09 26 March 2018 External T.I. 2017-0734381E5 F - Election paragraph 34(a) Income Tax Act - Section 34 a subsequently admitted partner benefits from a s. 34 WIP election made for a professional partnership’s 2017 year
Income Tax Act - Section 10 - Subsection 10(14.1) transitional rule applies to assignee partner
2018-05-02 9 April 2018 External T.I. 2017-0714381E5 F - Application de l'article 67.1 Income Tax Act - Section 67.1 - Subsection 67.1(1) hockey game tickets purchased by a hockey player recruiter are subject to s. 67.1
9 April 2018 Internal T.I. 2017-0731251I7 F - Activités mondaines Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) computation of the $150 cost per employee safe harbour for employee parties
2018-04-25 12 June 2017 Internal T.I. 2016-0679291I7 F - Régime d’assurance décès et mutilation accidentels Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e.1) the payment of group accident plan premiums by an employer for its benefit gave rise to taxable benefits
2018-04-18 24 January 2018 External T.I. 2016-0645911E5 F - Avantage imposable - Stationnement Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) free parking benefit scaled to comparable-spot charge/ business-use exception excludes overtime use
2018-04-11 6 October 2017 APFF Roundtable Q. 1, 2017-0708971C6 F - Inactive Corporations & subs. 162(7) ITA Income Tax Act - Section 162 - Subsection 162(7) no penalty imposed where failure to file a nil T2 return
Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) requirement for Canco to file nil T2 returns, but no penalty
6 October 2017 APFF Roundtable Q. 2, 2017-0709001C6 F - T4A filing obligation Income Tax Act - Section 162 - Subsection 162(7) "temporary" policy for not applying penalties for failure to issue T4As to independent contractors
Income Tax Regulations - Regulation 200 - Subsection 200(1) penalty applicable but not necessarily applied for failure to complete fee box
6 October 2017 APFF Roundtable Q. 3, 2017-0709011C6 F - Désignation d’un bien comme résidence principale Income Tax Act - Section 54 - Principal Residence - Paragraph (c) an individual accessing the “+1” rule on a principal residence disposition need not complete Form 2091
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) no loss of bonus year if standard designation
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) no loss of bonus year if standard designation
6 October 2017 APFF Roundtable Q. 4, 2017-0709021C6 F - CDA and Winding-up of a corporation Income Tax Act - Section 88 - Subsection 88(2) - Paragraph 88(2)(b) - Subparagraph 88(2)(b)(i) CRA will accommodate a s. 88(2)(b)(i) capital dividend election based on an estimated CDA balance
6 October 2017 APFF Roundtable Q. 5, 2017-0709031C6 F - T2054 - Short Cut Method Income Tax Act - Section 184 - Subsection 184(3) the “short-cut method” for short-circuiting a Pt III assessment is “generally" available
6 October 2017 APFF Roundtable Q. 6, 2017-0709041C6 F - Services PE Treaties - Income Tax Conventions - Article 5 there can be a services PE in Canada during the tail end of a project which ends in the first few months of a calendar year

Pages