Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2007-07-06 14 June 2007 Internal T.I. 2007-0229311I7 F - Capital Dividend Account Income Tax Act - Section 184 - Subsection 184(3) invalid payment of capital dividend (because no payment) was subject to Pt. III tax (given valid s. 83(2) election) for which no s. 184(3) election could be made as no payment
General Concepts - Effective Date a declared dividend cannot be revoked
3 July 2007 External T.I. 2007-0236551E5 F - Crédit d'impôt pour études Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Student post-doctoral fellow is not a student
2007-06-29 21 June 2007 External T.I. 2005-0157861E5 F - Cotisation professionnelle Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) membership in a municipal employees’ association was not necessary for the maintenance of a professional status
13 June 2007 External T.I. 2007-0226261E5 F - Convention Émirats Arabes Unis Treaties - Income Tax Conventions - Article 4 meaning of “substantially all” in UAE Convention informed by its meaning under ITA
Treaties - Income Tax Conventions - Article 3 undefined term in Convention informed by its domestic interpretation by CRA
Income Tax Regulations - Regulation 5907 - Subsection 5907(11.2) - Paragraph 5907(11.2)(a) FA required to have its central management and control in the Treaty country in addition to satisfying the Treaty residence test
18 June 2007 Internal T.I. 2007-0231861I7 F - Principale place d'affaires Income Tax Act - Section 8 - Subsection 8(13) - Paragraph 8(13)(a) - Subparagraph 8(13)(a)(i) “principally performed” test references the proportion of time spent at the home office
21 June 2007 Internal T.I. 2007-0239681I7 F - perte sur prêts irrécouvrables Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) acquisition of shares through an RRSP can establish an income-producing purpose re a non-interest loan made directly to the corp
2007-06-22 13 June 2007 External T.I. 2006-0178031E5 F - Biens détenus par des fiducies testamentaires Income Tax Act - Section 104 - Subsection 104(2) property settled on a spousal trust that, on the spouse/s death, passes to testamentary trusts for the testator’s children, originates from him for s. 104(2)(a) purposes
14 June 2007 External T.I. 2006-0198341E5 F - L'EXPRESSION "VIT DANS UNE RELATION CONJUGALE" Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner meaning of "cohabits… in a conjugal relationship
14 June 2007 External T.I. 2006-0209341E5 F - Utilisation d'un bien d'une société de personnes Income Tax Act - Section 103 - Subsection 103(1) personal use of property is a factor going to the reasonableness of the profit-sharing arrangements
Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d) personal use of property could engage s. 96(2.2)(d)
Income Tax Act - Section 246 - Subsection 246(1) conferral-of-benefit provisions do not apply to a partner’s personal use of partnership property other than car
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose partner’s use of partnership property is addressed by denying partnership income deductions and under s. 103, rather than through benefit-conferral provisions
2007-06-15 5 June 2007 External T.I. 2006-0174521E5 F - Avantages imposables - Ordinateur et Internet Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) 85% personal use of employer-funded home computer does not generate taxable benefit if computer is essential to performance of employment duties
29 May 2007 Internal T.I. 2006-0217401I7 F - 110(1)d): Moment de la conclusion de la convention Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) - Subparagraph 110(1)(d)(ii) - Clause 110(1)(d)(ii)(A) where options previously granted were not exercisable until an employer “Exercise Notice,” the stock option agreement was made at such notice time
Income Tax Act - Section 7 - Subsection 7(5) not giving exercise notice to employees who are not shareholders (so that they cannot exercise their options) may engage s. 7(5)
7 June 2007 External T.I. 2007-0228831E5 F - Pénalité au rachat d'une obligation Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) bond redemption premium entered into computation of capital gain or loss of bondholder notwithstanding withholding of premium from accrued interest
2007-06-08 9 May 2007 External T.I. 2006-0189931E5 F - Renonciation à une fiducie par un conjoint Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) renunciation of interest in spousal trust not a disposition to the family beneficiaries
Income Tax Act - Section 248 - Subsection 248(1) - Disposition extinguishment of trust interests on their renunciation is a disposition of the renounced interest, but resulting variation of trust to accelerate distribution entitlements is not
Income Tax Act - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not engage s. 104(4) until distribution
Income Tax Act - Section 70 - Subsection 70(6) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not deny s. 70(6) rollover
30 May 2007 External T.I. 2006-0200271E5 F - Bien agricole et résidence principale Income Tax Act - Section 40 - Subsection 40(4) s. 45(3) election did not extend time that farm house was a principal residence, once the occupant went to nursing home
Income Tax Act - Section 45 - Subsection 45(3) no change of use when occupant of residence moved into a nursing home
Income Tax Act - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) principally references over 50% of use
11 May 2007 External T.I. 2006-0214351E5 F - Transfert d'un droit de propriété Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) where duplex co-owned by husband and wife, the one unit occupied by them can be designated as a principal residence – but this changes when daughter moves into the 2nd unit
Income Tax Act - Section 248 - Subsection 248(1) - Property an occupied unit in a co-owned duplex can be designated as a principal residence
30 May 2007 External T.I. 2006-0218101E5 F - Interaction entre 125.4(1) et 256(1.2)c) Income Tax Regulations - Regulation 1106 - Subsection 1106(2) s. 256(1.2)(c) does not inform the definition of prescribed taxable Canadian corporation
Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(c) s. 256(1.2)(c) does not affect the determination of de facto control
28 May 2007 External T.I. 2007-0219801E5 F - Paiement de soutien aux enfants Income Tax Act - Section 74.1 - Subsection 74.1(2) child assistance payment is transferred to a minor child is subject to s. 74.1(2) attribution
4 June 2007 Internal T.I. 2007-0229251I7 F - Montants reçus pour aide personnelle à domicile Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit no income to parental caregiver in situations similar to Pellerin
24 May 2007 Internal T.I. 2007-0235681I7 F - Frais de bureau à domicile Income Tax Act - Section 18 - Subsection 18(12) home office expenses to earn income from property are not subject to s. 18(12)
5 June 2007 Internal T.I. 2007-0237291I7 F - Disposition d'une police d'assurance-vie Income Tax Act - Section 148 - Subsection 148(7) s. 148(7) applicable to gift of policies by partners to a limited partnership
2007-06-01 24 May 2007 External T.I. 2006-0209081E5 F - Withholding Source Deductions - Trustee Fees Income Tax Act - Section 248 - Subsection 248(1) - Office fees if trustees of REIT based partly on the number of meetings they attended were from an office
Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration fees received by REIT trustees including per-meeting fees were salary and wages subject to source deductions and T4 reporting
2007-05-25 23 May 2007 External T.I. 2006-0215721E5 F - Application de l'alinéa 40(2)b) Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) on sale of land and second building, taxpayer can include the years of occupation of predecessor building that he demolished
22 May 2007 External T.I. 2007-0228611E5 F - Crédit pour la création d'emplois pour apprentis Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice year means 12 months/”contract” for apprentice can be the collective agreement
2007-05-18 11 May 2007 External T.I. 2005-0156891E5 F - Déductibilité des intérêts - retour de capital Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) return of share capital or partnership contribution eliminated interest deductibility on loan to fund share subscription or partnership capital contribution
11 May 2007 External T.I. 2006-0191681E5 F - Déductibilité des intérêts - retour de capital Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) no interest deductibility where share subscription using bank loan is immediately followed by stated capital distribution in same amount to pay off personal mortgage

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