Income Tax Severed Letters - 1995-02-24

Technical Interpretation - External

21 February 1995 External T.I. 9431215 - EMPLOYEE STOCK PURCHASE PLAN

Unedited CRA Tags
7 6(1)(a) 5

Principal Issues:
Whether section 7 applies to a share purchase plan?

16 February 1995 External T.I. 9432245 - INTEREST ON LOAN TO NON-RESIDENT

Unedited CRA Tags
17(1)
Summary Under
Tax Topics - Income Tax Act - Section 17 - Subsection 17(1)

Principal Issues:

16 February 1995 External T.I. 9429935 - TYPES OF PROPERTY

Unedited CRA Tags
55(3)(b)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

5-942993
XXXXXXXXXXJ. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

February 16, 1995

Dear Sirs:

Re: Types of property

16 February 1995 External T.I. 9500185 - WITHOLDING

Unedited CRA Tags
153(1)(j)
Summary Under
Tax Topics - Income Tax Regulations - Regulation 103 - Subsection 103(6)

Principal Issues:

13 February 1995 External T.I. 9502855 - LSVCC, QUALIFYING TRUST

Unedited CRA Tags
127.4(1)
Summary Under
Tax Topics - Income Tax Act - Section 127.4 - Subsection 127.4(1) - Qualifying Trust

Principal Issues: Must RRSPs use only new contributions to fund LSVCC share purchases?

13 February 1995 External T.I. 9503235 - SINGLE PURPOSE CORPORATION-OWNS CANADIAN PROPERTY-7761-1

Unedited CRA Tags
15(1)
Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1)

Principal Issues:

10 February 1995 External T.I. 9500695 - PARAGRAPH 111(4) AMENDED DESIGNATION

Unedited CRA Tags
111(4)
Summary Under
Tax Topics - Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		950069
XXXXXXXXXX	David R. Senécal

Attention: XXXXXXXXXX

February 10, 1995

Dear Sirs:

Re: Paragraph 111(4)(e) of the Income Tax Act (the "ACT")

10 February 1995 External T.I. 9424485 - PARAGRAPHS 111(4)(C)&(E)

Unedited CRA Tags
111(4)
Summary Under
Tax Topics - Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		942448
XXXXXXXXXX	David R. Senécal

Attention: XXXXXXXXXX

February 10, 1995

Dear Sirs:

Re: Paragraphs 111(4)(c) and 111(4)(e) of the Income Tax Act

10 February 1995 External T.I. 9503495 F - APPLICATION DE LORS D'UN CHOIX

Unedited CRA Tags
110.6(8) 110.6(19)

Position Adoptée:

10 February 1995 External T.I. 9431795 - MARKETABLE SECURITIES

Unedited CRA Tags
REG 5000(7)
Summary Under
Tax Topics - Income Tax Regulations - Regulation 5000 - Subsection 5000(7) - Pooled Fund Trust
Words and Phrases
marketable securities

Principal Issues:

10 February 1995 External T.I. 9426405 - ART XIII(3) CANADA-U.S. CONVENTION -SHARE INCLUDES OPTION

Unedited CRA Tags
ART XIII(3)
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 13

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

 		942640
XXXXXXXXXX					David R. Senécal
(613) 957-9796

February 10, 1995

Dear XXXXXXXXXX:

9 February 1995 External T.I. 9418255 - INSURANCE VS AGENCY BUSINESS

Unedited CRA Tags
138(1) 248(1)

Principal Issues:

8 February 1995 External T.I. 9432135 - PERSONAL TRUST EMPLOYEE PROFIT SHARING PLAN

Unedited CRA Tags
144(4) 248(1)

Principal Issues:

8 February 1995 External T.I. 9432525 - WITHHOLDING FROM RRIF

Unedited CRA Tags
REG 103 146.3(1)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

PRINCIPAL ISSUE:

Whether any amount that is withdrawn from a RRIF in the year the fund is entered into is subject to withholding tax.

Position TAKEN:

Yes.

Reasons FOR POSITION TAKEN:

8 February 1995 External T.I. 9416555 - APPLIC. OF PARAGRAPH 1 OF ARTICLE XXI OF CANADA- U.S. TREATY

Unedited CRA Tags
ART XXI

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

				941655
XXXXXXXXXX				David R. Senecal

February 8, 1995

Dear XXXXXXXXXX:

8 February 1995 External T.I. 9432655 - QUALIFIED FARM PROPERTY - PRINCIPAL RESIDENCE

Unedited CRA Tags
110.6(1) 40(2)(c)

Principal Issues:

8 February 1995 External T.I. 9421285 - CONTINGENT RIGHT TO ACQUIRE SHARES

Unedited CRA Tags
251(5)(B)
Summary Under
Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b)

Principal Issues:

7 February 1995 External T.I. 9421745 - DEALING AT ARM'S LENGTH

Unedited CRA Tags
84.1 245(2)

Principal Issues:

7 February 1995 External T.I. 9425625 - INSURANCE CORP & WINDING UP

Unedited CRA Tags
88(1.1)

Principal Issues: - When does the winding-up of an insurance corporation commence?

6 February 1995 External T.I. 9431555 F - RS&DE

Unedited CRA Tags
37 127(5) 127(9) 18(1)a) 67

Principales Questions:

Est-ce que OPCO a droit au CII sur le montant total des dépenses de 300 000 $ tel qu'indiqué dans la contrat ou est-il limité au montant réellement déboursé de 150 000 $?

Position Adoptée:

6 February 1995 External T.I. 9502785 F - CONVENTION DE RETRAITE

Unedited CRA Tags
207.5(1)

Principales Questions:

Routine sur convention de retraite

Position Adoptée:

3 February 1995 External T.I. 9429465 - SAFE INCOME AND DIVIDEND REFUND

Unedited CRA Tags
55(2)

Principal Issues: Can a dividend be divided into a portion that is subject to Part IV and a portion that is paid out of safe income thereby maximizing the amount that is exempt from subsection 55(2)?

3 February 1995 External T.I. 9430965 - CAPITAL GAINS ELECTION - SOLE OWNER OF PROPERTY

Unedited CRA Tags
110.6(19)

Principal Issues:

2 February 1995 External T.I. 9427775 - RRSP INSURANCE QUALIFIED INVESTMENT

Unedited CRA Tags
146(1) 198(6)

Principal Issues: Can a specific insurance contract be held in an RRSP

2 February 1995 External T.I. 9429835 - QUALIFIED FARM PROPERTY & CAPITAL GAINS ELECTION

Unedited CRA Tags
110.6(19) 110.6(1)

Principal Issues:

2 February 1995 External T.I. 9431635 - CAPITAL GAINS EXEMPTION

Unedited CRA Tags
110.6(1)

Principal Issues:

2 February 1995 External T.I. 9502865 - LSVCC, QUALIFYING TRUST

Unedited CRA Tags
127.4(1)

Principal Issues: Must RRSPs use only new contributions to fund LSVCC share purchases?

2 February 1995 External T.I. 9502895 - 56(2) AND NEUMAN CASE

Unedited CRA Tags
56(2) 245(2)

Principal Issues: (1) taxpayer looking for opinion on proposed set of transactions

31 January 1995 External T.I. 9423285 - DESIGNATED UNDERGROUND STORAGE COST

Unedited CRA Tags
r1104(2) 66.2(5)

Principal Issues:

31 January 1995 External T.I. 9431755 - ELIGIBLE REAL PROPERTY GAIN - AMALGAMATION

Unedited CRA Tags
110.6(1) 87(2)(a)

Principal Issues:

31 January 1995 External T.I. 9430355 - WOODLOTS

Unedited CRA Tags
9

Principal Issues:

31 January 1995 External T.I. 9426065 - PUC OF SHARES

Unedited CRA Tags
89(1)

Principal Issues: - What is the PUC of a class of shares where the corp can chose an amount that may be lower than the fair market value of the property received? Will we take the amount in the financial statements where corporate records are silent?

31 January 1995 External T.I. 9432975 - FLOW-THROUGH SHARE RENOUNCED SPECIFIED CDE

Unedited CRA Tags
66(12.66) 66(12.602)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		5-943297
XXXXXXXXXX	B. Rankin

Attention: XXXXXXXXXX

January 31, 1995

Dear Sirs:

Re: Subsections 66(12.66) and 66(12.602) of the Income Tax Act

25 January 1995 External T.I. 9415705 - CHILEAN LIMITADA

Unedited CRA Tags
95(1)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

			941570
XXXXXXXXXX	S. Leung

Attention: XXXXXXXXXX

January 25, 1995

Dear Sirs:

Re: Chilean Sociedad de Responsabilidad Limitada (a "limitada")

20 January 1995 External T.I. 9500745 - APPROVED ASSOCIATION

Unedited CRA Tags
37

Principal Issues:

19 January 1995 External T.I. 9432125 - RETIRING ALLOWANCE

Unedited CRA Tags
56(1)(a) 60(j.1)

Principal Issues:

12 January 1995 External T.I. 9431595 - STOCK OPTION

Unedited CRA Tags
7(1.1)

Principal Issues:

11 January 1995 External T.I. 9430975 - RETIRING ALLOWANCE

Unedited CRA Tags
248(1)

Principal Issues:

6 January 1995 External T.I. 9431615 F - RCA

Unedited CRA Tags
248(1)

Principales Questions:

Est-ce que les revenus accumulés attribuables aux cotisations versées au régime existant sont assujettis à l'impôt de 50%?

Position Adoptée:

6 January 1995 External T.I. 9432485 - FARMOUT RE DRILLING EXPENSES

Unedited CRA Tags
66.1(6)

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		943248
XXXXXXXXXX	A.A. Cameron

Attention: XXXXXXXXXX

January 6, 1995

Dear XXXXXXXXXX:

Re: Treatment of Certain Expenditures for Purposes of the Income Tax Act (the "Act")

5 January 1995 External T.I. 9427445 - WHEN DO TRUST INTERESTS VEST INDEFEASIBLY?

Unedited CRA Tags
108(1) 106(1) 106(2) 104(4)(a.1)
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Trust - Paragraph (g)
indefeasible vesting can occur shortly before 21st anniversary

Principal Issues:

Technical Interpretation - Internal

19 January 1995 Internal T.I. 9433627 - RETIRING ALLOWANCE

Unedited CRA Tags
248(1)

Principal Issues:

Ministerial Letter

17 March 1994 Ministerial Letter 9403868 F - DÉDUCTIBILITÉ DES INTÉRETS

Unedited CRA Tags
20(1)(c)(ii)

Principales Questions:

Déductibilité des intérêts sur un billet émis lors du rachat d'actions

Position Adoptée: