Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2022-11-09 18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T Income Tax Regulations - Regulation 1102 - Subsection 1102(5) building shell was a building or structure/ addition refers to extension of structure
2021 Ruling 2021-0916821R3 F - Continuance corporation from CBCA to Co-operative Income Tax Act - Section 86 - Subsection 86(1) application of s. 86 reorganization rule to a continuance from the CBCA to a Co-operatives Act
Income Tax Act - Section 248 - Subsection 248(1) - Disposition continuance from the CBCA to a Co-operatives Act did not entail disposition of assets, but s. 86 applied at the shareholder level
2022-11-02 2022 Ruling 2022-0925601R3 F - Post-mortem Pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline accomplished through the Newco purchaser issuing 8 instalment notes to the estate as a PUC reduction
2022-10-26 10 January 2022 External T.I. 2020-0873921E5 F - SUCL- Assurance responsabilité civile Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Rent Expense - Variable A - Paragraph (b) - Subparagraph (b)(ii) qualifying rent expense did not include third-party liability insurance premiums
2021 Ruling 2021-0877011R3 - Post-mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) note issued on post-mortem pipeline effected on portfolio company paid off over 3 years commencing 1 year after transfer by estate to Newco
5 August 2022 External T.I. 2021-0877051E5 F - TOSI and excluded amount Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business 2nd generation income not derived from business/ interest received from company employing sibling a related business/ ownership test in (c) may be satisfied through a family trust
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (c) test not satisfied due to interest from company employing a sibling
2022-10-12 2021 Ruling 2021-0895071R3 F - Partnership Reorganization Income Tax Act - Section 98 - Subsection 98(3) conversion of a carry to a straight-up interest
Income Tax Act - Section 40 - Subsection 40(3.3) refusal to rule where shares received on LP s. 98(3) wind-up immediately sold to Carry LP owned by owners of former general partner
Income Tax Act - Section 40 - Subsection 40(3.12) no s. 40(3.12) ruling given re loss on fund LP wind-up
2022-08-31 2021 Ruling 2021-0895631R3 - Post-mortem planning - Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) 2-year pipeline transactions
Income Tax Act - Section 40 - Subsection 40(3.61) no stop-loss for s. 164(6) loss realized by estate before pipeline transactions
2022-07-13 10 February 2022 External T.I. 2021-0912581E5 F - Borrowing to make interest-free loans Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest-free loans by a limited partner to the LP, or to wholly-owned subs which directly or indirectly hold such LP, can be a good s. 20(1)(c)(i) current use
2022-07-06 25 February 2022 External T.I. 2020-0873761E5 F - Shareholder loan Income Tax Act - Section 15 - Subsection 15(2) s. 15(2) applies separately to accrued and unpaid interest on shareholder loan
Income Tax Act - Section 80.4 - Subsection 80.4(3) - Paragraph 80.4(3)(b) s. 80.4(2) does not apply to accrued and unpaid interest on a loan
Income Tax Act - Section 15 - Subsection 15(2.6) s. 15(2) applies separately to accrued and unpaid interest on a shareholder loan, but s. 80.4(2) does not apply to such interest
2022-06-15 2021 Ruling 2021-0880641R3 F - Changes to existing monetization arrangements Income Tax Act - Section 80.6 - Subsection 80.6(1) substituting the index used in a monetization arrangement did not de-grandfather it from the synthetic disposition rules
General Concepts - Transitional Provisions and Policies agreement novation likely would lose grandfathering
30 March 2022 External T.I. 2017-0737181E5 F - Right to receive income from a trust Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) clause suspending the right to income on bankruptcy would not satisfy s. 73(1.01)(c)(ii)
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 1, 2021-0899661C6 - Application of paragraph 20(1)(bb) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) licensed securities dealers satisfy the principal business test and reasonable management fees paid to them are deductible
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 3, 2021-0896031C6 F - Règles sur les pertes apparentes Income Tax Act - Section 54 - Superficial Loss application of superficial loss rule to reacquisition of identical shares by spousal RRSP on the 30th day
Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(5) counting 30 day period starting with disposition
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 4, 2021-0895991C6 F - Déduction pour don de bienfaisance corporatif Income Tax Act - Section 123.4 - Subsection 123.4(1) - Full Rate Taxable Income - Paragraph (b) no charitable deduction can reduce aggregate investment income
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 5, 2021-0903871C6 F - HBP - Breakdown of marriage or common-law partners Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) individual could make an HBP withdrawal after she started living separate and apart (but still in same house) from her common-law partner
Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner former common-law partners can live separate and apart in the same house, and cessation of their status is effective the first day
Income Tax Act - Section 146.01 - Subsection 146.01(2.1) - Paragraph 146.01(2.1)(a) when two spouses separate in the same co-owned house, one can make an HBP withdrawal to purchase the co-ownership interest of her spouse
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 6, 2021-0896061C6 F - Prolonged Administration of an Estate Income Tax Act - Section 104 - Subsection 104(18) s. 104(18) can apply where an executor has discretion to defer the payment of income for the benefit of minor beneficiaries over an extended period
Income Tax Act - Section 104 - Subsection 104(1) extended administration clause created an extended trust
Income Tax Act - Section 104 - Subsection 104(6) s. 104(18) overrode the s. 104(6) requirement to make income payable in the year
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 7, 2021-0899681C6 F - Stock option, Short sale and Identical property
Income Tax Act - Section 7 - Subsection 7(1.31) s. 7(1.31) applies to sale of shares acquired on exercise to cover short, but not to the sale of the shorted shares
Income Tax Act - Section 39 - Subsection 39(4) s. 39(4) election can apply to both the dispositions occurring in connection with short sale transactions
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 8, 2021-0899701C6 F - Post-mortem planning - Pipeline Income Tax Act - Section 84 - Subsection 84(2) a pipeline transaction can use an existing corporation rather than a Newco
Income Tax Act - Section 84.1 - Subsection 84.1(1) pipeline transaction can be structured to access hard ACB
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 9, 2021-0903501C6 F - RRSP overcontribution and RRIF withdrawal Income Tax Act - Section 204.2 - Subsection 204.2(1.2) - J an RRSP or RRIF withdrawal has an immediate impact on tax on the cumulative excess
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 10, 2021-0896101C6 F - Death of seg. fund policyholder - income allocatio Income Tax Act - Section 138.1 - Subsection 138.1(1) - Paragraph 138.1(1)(f) accrued income under a segregated fund is not deemed by s. 138.1(1)(f) to be a right or thing
Income Tax Act - Section 104 - Subsection 104(24) deeming of an amount to be payable for s. 104(24) purposes does not create a legal entitlement to it
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 11, 2021-0896021C6 - APFF Q.11 - T1135 and situs of cryptocurrencies Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) CRA is currently reviewing whether and when cryptocurrencies may not be foreign property
2022-06-08 7 October 2021 APFF Roundtable Q. 1, 2021-0900891C6 F - Tax treatment of employee share trust Income Tax Act - Section 7 - Subsection 7(2) s. 7(2) does not deem there to be an agreement to acquire shares

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