Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-10-05 27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) loan advances to a limited partner may give rise to immediate s. 53(2)(c)(v) grind
Income Tax Act - Section 40 - Subsection 40(3.1) loans by LP to partner potentially gave rise to negative ACB gain
Income Tax Act - Section 40 - Subsection 40(3.13) retention of partnership profits not a contribution
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) assumption of loan can be contribution, but not retained profits
2016-09-28 16 June 2016 Internal T.I. 2015-0597971I7 F - Perte réputée nulle - loss deemed nil Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) capital loss potentially could be recognized on a non-interest bearing loan made to a corporation in which the taxpayer had no equity/subordinate purpose sufficient
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) BIL potentially could be recognized on a non-interest bearing loan made to a corporation in which the taxpayer had no equity
17 May 2016 External T.I. 2015-0603711E5 F - Personne assumant les frais d'entretien Income Tax Act - Section 63 - Subsection 63(3) - Supporting Person parent living abroad was not a supporting person
2016-09-21 27 April 2016 External T.I. 2016-0625001E5 F - Surplus Stripping Income Tax Act - Section 84 - Subsection 84(2) using a trust to funnel a deemed dividend from creating PUC to a Holdco beneficiary and funnelling that PUC to the individual beneficiary, is surplus stripping
Income Tax Act - Section 245 - Subsection 245(4) funnelling deemed dividend to holdco trust beneficiary and resulting PUC to individual beneficiary/shareholder was surplus stripping
Income Tax Act - Section 104 - Subsection 104(24) distribution of s. 84(1) dividend effected with note issuance
2 May 2016 External T.I. 2016-0633351E5 F - Descarries Case and Document no. 2015-0610711C6 Income Tax Act - Section 245 - Subsection 245(4) Descarries not to be construed narrowly
Income Tax Act - Section 84.1 - Subsection 84.1(1) purpose of 84.1 not restricted to monetization transactions
2016-09-14 11 April 2016 External T.I. 2015-0564161E5 F - IT-522R par. 36 Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) non-taxable s. 6(1)(b)(v) allowance for one type of expense does not preclude s. 8(1)(f) deduction for other types
1 December 2015 Internal T.I. 2015-0588381I7 F - Classification of US-LLCs Income Tax Act - Section 248 - Subsection 248(1) - Corporation status of Delaware, NY and Florida LLCs as corps not affected by Quebec residence of member
Income Tax Act - Section 96 corporation/partnership classification of foreign entity not affected by Quebec residence of member
Statutory Interpretation - Interpretation Act - Section 8.1 8.1 effected no change/2 step-approach should be inter-provincial
10 June 2016 External T.I. 2015-0590371E5 F - Résidence principale - stationnement Income Tax Act - Section 54 - Principal Residence - Paragraph (e) a parking space can form part of a condo housing unit
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) designating condo parking space for a year does not exhaust exemption for the condo unit
5 January 2016 External T.I. 2015-0568911E5 F - MRC - Revenu d’entreprise Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.5) Quebec regional county municipality is municipality
Income Tax Act - Section 256 - Subsection 256(5.1) test references dominant person
10 June 2016 External T.I. 2015-0587131E5 F - Remboursement de frais de repas Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) meal reimbursements within same metro area not a taxable benefit if purpose is to enhance efficiency
2016-09-07 13 July 2016 External T.I. 2013-0478961E5 F - Interest in a family farm or fishing partnership Income Tax Act - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership qualification of partnership units as interests in a family farm or fishing partnership can be based on a previous period of farming use of its assets
13 July 2016 External T.I. 2013-0513701E5 F - Montant pour enfant Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) child accepted as ordinarily residing with parent with joint custody
7 June 2016 External T.I. 2014-0532451E5 F - Crédit pour la création d’emplois pour apprentis Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice apprenticeship contracts include collective agreements/24-month period runs from issuance of apprentice competency certificate
24 June 2016 Internal T.I. 2014-0555611I7 F - Allocation raisonnable Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) kilometer-based minimum allowance must be intended to compensate for actual expenses
2016-08-10 11 July 2016 External T.I. 2015-0592681E5 F - RRIF Death of an annuitant Income Tax Act - Section 146.3 - Subsection 146.3(1) - Annuitant surviving spouse who has been predesignated can qualify as an RRIF annuitant even if he or she does not receive any annuity payments
Income Tax Act - Section 146.3 - Subsection 146.3(6.2) deduction for transfer to eligible recipient by surviving spouse
Income Tax Act - Section 60 - Paragraph 60(l) transfer by eligible recipient of payment out of RRIF
Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums consequence of death if named as beneficiary in RRSP contract
2016-07-13 3 June 2016 External T.I. 2016-0647621E5 F - Dividend designation from a trust - timing Income Tax Act - Section 104 - Subsection 104(19) designation not effective until end of year
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(a) dividend distributed by a trust to a connected corporation can be subject to Part IV tax due to the delayed implied effective date of s. 104(19) designations
2016-07-06 20 June 2016 External T.I. 2014-0559961E5 F - Subsection 39(4) - securities owned by partnership Income Tax Act - Section 39 - Subsection 39(4.1) limited partners carry on the trading business of their LP for purposes of the election
20 June 2016 External T.I. 2016-0648481E5 F - Small business deduction and GRIP Income Tax Act - Section 89 - Subsection 89(1) - Adjusted Taxable Income CCPCs can choose to forego the small business deduction so as to maximize their GRIP
Income Tax Act - Section 125 - Subsection 125(1) SBD discretionary
20 June 2016 External T.I. 2016-0651951E5 F - Amalgamation - non-capital loss of new corporation Income Tax Act - Section 87 - Subsection 87(2.1) no carryback of losses of new corporation formed by amalgamation of 2 sisters
2016-06-29 16 June 2016 External T.I. 2015-0623031E5 F - Application of paragraph 7(1)(b) Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) contingent amount included under s. 7(1)(b), cannot subsequently be excluded
General Concepts - Effective Date contingent amount included under s. 7(1)(b) cannot later be reversed
4 April 2016 Internal T.I. 2016-0625241I7 F - Application of section 207.31 Income Tax Act - Section 207.31 tax on sales of ecological lands applies even if no deduction was claimed
Income Tax Act - Section 110.1 - Subsection 110.1(1) - Paragraph 110.1(1)(d) tax on subsequent disposition irrespective of deduction claimed
2016-06-22 20 April 2016 External T.I. 2016-0633961E5 F - Computation of safe income - stub period Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) recapture/eligible capital amount realized on sale before safe-income determination time included in safe income

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