Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2016-06-15 27 April 2016 External T.I. 2016-0633101E5 F - Attribution of safe income Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) discretionary dividend will not reduce safe income attributable to the other class of discretionary dividend shares to the extent the dividend is taxable under s. 55(2)
Income Tax Act - Section 55 - Subsection 55(1) - Distribution discretionary dividend shares may not satisfy the distribution definition
2016-05-18 15 October 2015 Internal T.I. 2014-0527041I7 F - Disposition de biens Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) merely facilitative expenses not deducible
30 March 2016 External T.I. 2016-0629701E5 F - bump-up 88(1)(d) Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) land developer can bump the cost amount of land (for use by it as land inventory) which was held by a target as capital property when its control was acquired
Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate land developer accesses capital property status of land held in acquired subsidiary
2016-05-11 5 January 2016 External T.I. 2013-0515771E5 F - Établissement semblable agréé Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(ii) - Clause 37(1)(a)(ii)(B) applicant’s activities not unquestionably SR&ED
31 March 2016 External T.I. 2014-0524391E5 F - Debt parking Income Tax Act - Section 80.01 - Subsection 80.01(8) debt parking rule can apply even if no capital loss is recognized/ applies before s. 53(1)(f.1) add-back
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f.1) application of s. 53(1)(f.1) subsequent to application of debt parking rule
11 August 2015 External T.I. 2014-0527291E5 F - Remboursement de frais médicaux-CIMAD Income Tax Act - Section 118.2 - Subsection 118.2(3) - Paragraph 118.2(3)(b) Quebec Tax Credit for Home-Support Services for Seniors does not reduce METC
Income Tax Act - Section 152 - Subsection 152(1) correction in CRA position not applied on a retroactive basis
15 March 2016 External T.I. 2015-0606911E5 F - Home Accessibility Tax Credit Income Tax Act - Section 118.041 - Subsection 118.041(3) claimant must be a qualifying or eligible individual
2016-04-27 15 December 2015 External T.I. 2015-0602671E5 F - Pompier volontaire Income Tax Act - Section 118.06 - Subsection 118.06(1) interpretation of "volunteer firefighter" not changed by Bourgeois
21 January 2016 Roundtable, 2016-0624811C6 F - Employee Assistance Program Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(iv) restricted to advice, valued at hypothetical cost
21 January 2016 Roundtable, 2016-0624851C6 F - Spousal sharing of charitable gifts made by will Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gifts made by will of the deceased can no longer be treated as gifts by a surviving spouse
21 January 2016 Roundtable, 2016-0624871C6 F - Colloque CPA- Frais médicaux - medical expenses Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(d) nursing home can be part of a facility
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) expenses of doctor travel and of Quebec naturopaths and osteopaths excluded
21 January 2016 Roundtable, 2016-0625131C6 F - Farming losses Income Tax Act - Section 31 - Subsection 31(1) traditional CRA policy on s. 31 is still reflective of its position post-Craig
21 January 2016 Roundtable, 2016-0625161C6 F - Résidence principale habitée par un enfant Income Tax Act - Section 54 - Principal Residence - Paragraph (a) related occupant of a principal residence can be charged FMV rent
21 January 2016 CPA Personal Income Tax Roundtable Q. 7, 2016-0625731C6 F - Fees related to a voluntary disclosure Income Tax Act - Section 60 - Paragraph 60(o) professional fees incurred after a voluntary disclosure is accepted commence to be deductible
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) VDP fees deductible if re business
21 January 2016 Ordre des CPA du Québec Personal Taxation Roundtable Q. 9, 2016-0625141C6 F - Principal residence - duplex Income Tax Act - Section 54 - Principal Residence interior access door to other unit in duplex occupied by elderly parent, and meal sharing, not sufficient to render as one housing unit
2016-03-23 9 March 2016 External T.I. 2016-0630281E5 F - Redemption of shares and changes to 55(2) Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) exemption of s. 84(3) deemed dividend not exceeding safe income
Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) s. 55(2) application to separate dividend
Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(b) demarcation between ss. 55(2)(b) and (c)
2016-02-24 7 January 2016 External T.I. 2015-0610201E5 F - HBP-Acquisition of a condominium unit Income Tax Act - Section 146.01 - Subsection 146.01(2) - Paragraph 146.01(2)(b) meaning of vacant possession
Income Tax Act - Section 248 - Subsection 248(1) - Self-Contained Domestic Establishment elf-contained domestic establishment has restricted access and a kitchen, bathroom and sleeping space
2016-02-17 8 December 2015 External T.I. 2015-0608781E5 F - Associated corporations - discretionary trust Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) - Subparagraph 256(1.2)(f)(ii) beneficiary includes beneficially entitled/combined application of 256(1.2)(f)(ii) and 256(1.3), but shares attributed only once]
Income Tax Act - Section 256 - Subsection 256(1.3) no double-counting of shares in applying s. 256(1.3) to shares deemed to be owned by minor trust beneficiaries
22 January 2016 External T.I. 2015-0617601E5 F - Pipeline followed by butterfly Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction can be coupled with a butterfly split-up
Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(b) where pipeline transaction followed by split-up butterfly, the opco also is a distributing corporation
21 December 2015 External T.I. 2015-0617731E5 F - 55(2) and creditor proofing Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) Opco dividend to Holdco whose sole purpose is creditor-proofing is subject to s. 55(2)
2016-02-10 28 January 2016 External T.I. 2015-0617771E5 F - Bump calculation Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(i) future income tax liabilities not treated as obligations to pay an amount
2016-01-27 7 December 2015 External T.I. 2015-0585171E5 F - 7(1)(b) benefit and 110(1.1) election Income Tax Act - Section 110 - Subsection 110(1.1) election not available if employee stock options on Target shares are purchased by the purchaser rather than surrendered to Target
2016-01-20 26 March 2015 Internal T.I. 2013-0503031I7 F - Existence d’une source de revenu Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit individual’s sideline activity not a business so that revenues exempt
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose criteria for determining whether a home is a principal place of business
8 June 2015 External T.I. 2014-0529851E5 F - Frais payés à une maison de santé ou de repos Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(e) no 2nd credit under s. 118.3 re accommodation expenses in nursing home
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(d) floor of retirement residence servicing those with advanced Alzheimer’s can qualify as “nursing home”
Income Tax Act - Section 118.2 - Subsection 118.2(1) expenses can be claimed based on 12-month period ending in year
3 December 2015 External T.I. 2015-0593941E5 F - Allocation of the safe income on hand Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) flexible allocation of SIOH where discretionary common shares
General Concepts - Fair Market Value - Shares FMV of discretionary share increased at moment of dividend declaration to exclusion of other discretionary shares

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