Income Tax Severed Letters - 1995-09-08

Ruling

3 August 1995 Ruling 9519093 - PERSONAL SERVICES BUSINESS

Unedited CRA Tags
125(7)

Principal Issues:

Technical Interpretation - External

31 August 1995 External T.I. 9522975 - SINGLE PURPOSE CORP POLICY UNDER REVIEW BY RCT

Unedited CRA Tags
15(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.

		952297
XXXXXXXXXX		Jim Wilson

Attention: XXXXXXXXXX

August 31, 1995

Dear Sirs:

Re: Single Purpose Corporation

29 August 1995 External T.I. 9506785 - PROPERTY...IN WHICH BUSINESS OF CO CARRIED ON

Unedited CRA Tags
art XIII
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 13

Principal Issues:

28 August 1995 External T.I. 9521025 F - RACHAT SERVICES PASSES - REER

Unedited CRA Tags
60j.1)(ii)(B) 147.2(4)

Principales Questions:

Allocation de retraite - montant transférable et déduction applicable.

Position Adoptée:

25 August 1995 External T.I. 9517335 - CONVERTIBLE DEBENTURES WITH ANTI-DILUTION CLAUSE

Unedited CRA Tags
212(1)(B)(VII)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Subparagraph 212(1)(b)(vii)

Principal Issues:

24 August 1995 External T.I. 9519785 F - PLACEMENTS ADMISSIBLES - REER

Unedited CRA Tags
146(1) REG 4900 20(14)

Principales Questions:

Placements admissibles - conditions de transfert d'un bien détenu par un particulier dans un compte distinct transféré à un REÉR autogéré en échange d'un autre bien détenu par le REÉR.

Position Adoptée:

22 August 1995 External T.I. 9515745 - SUCCESSIVE INTERESTS IN REAL PROPERTY - 43.1

Unedited CRA Tags
43.1 13(21)

Principal Issues:

22 August 1995 External T.I. 9520405 - TREATY ("RESIDENCE") STATUS OF A "S" CORPORATION

Unedited CRA Tags
Art IV
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 4

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.

		952040
XXXXXXXXXX	Jim Wilson
(613) 957-2123

Attention: XXXXXXXXXX

August 22, 1995

Dear Sirs:

Re: Residence Status of a Subchapter "S" Corporation ("S Corporation")
Article IV of the Canada-U.S Income Tax Convention (the "Treaty")

18 August 1995 External T.I. 9515455 - DEEMED PROCEEDS OF DISPOSITION

Unedited CRA Tags
69(11) 88(1)(d)
Summary Under
Tax Topics - Income Tax Act - Section 69 - Subsection 69(11)
non-application to s. 88(1)(d) bump

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.

				5-951545
XXXXXXXXXX					J. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

August 18, 1995

Dear Sirs:

Re: Application of subsection 69(11) of the Income Tax Act (the "Act")

18 August 1995 External T.I. 9511345 - DRUGS AS A QUALIFYING MEDICAL EXPENSE

Unedited CRA Tags
118.2

Principal Issues:

17 August 1995 External T.I. 9419825 - 7661-1 PART XIII SOFTWARE DISTRIBUTOR ROYALTIES

Unedited CRA Tags
212(1)(d)(i) 212(1)(d)(vi)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi)

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.

		941982
XXXXXXXXXX		Olli Laurikainen
(613) 957-2116
Attention:  XXXXXXXXXX

August 17, 1995

Dear Sirs:

Re: Computer Software Royalties Paid to Non-residents

17 August 1995 External T.I. 9518705 F - DEDUCT. INTERETS

Unedited CRA Tags
20(1)c)

Principales Questions:

1. Corporation mère emprunte argent à taux d'intérêt du marché, le prête ensuite à sa filiale à taux plus élevé et convertit le prêt par la suite à un prêt sans intérêt; intérêt toujours déductible par cie mère.

2. Si filiale émet actions ordinaires en contrepartie du remboursement du prêt, intérêt toujours déductible.

Position Adoptée:

16 August 1995 External T.I. 9512405 - VESSELS - PARTIAL DISPOSITION & 13(16) ELECTION

Unedited CRA Tags
13(16) 13(21)
Summary Under
Tax Topics - Income Tax Act - Section 13 - Subsection 13(16)

Principal Issues:
Whether the election under subsection 13(16) is available where a vessel is partially disposed.

16 August 1995 External T.I. 9521235 - 6363-1 DEEMED ACTIVE BUSINESS INCOME

Unedited CRA Tags
95(2)(a)(i)
Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(i)

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.

		952123
XXXXXXXXXX	Olli Laurikainen
(613) 957-2116

Attention: XXXXXXXXXX

August 16, 1995

Dear Sirs:

Re: Income from a Financing Business of a Foreign Affiliate

15 August 1995 External T.I. 9512715 - MEDICAL EXPENSE TAX CREDIT

Unedited CRA Tags
118.2(2)

Principal Issues:

11 August 1995 External T.I. 9516345 F - IT-315

Unedited CRA Tags
20(1)(c)

Principales Questions:

Déductibilité des intérêts sur un prêt qu'une société contracte en vue d'acquérir les actions (incluant les actions privilégiées et ordinaires) d'une société qui est ensuite fusionnée avec la société qui se porte acquéreur.

Position Adoptée:

10 August 1995 External T.I. 9504125 - RESIDENCE DETERMINATION - LEAVE OF ABSENCE

Unedited CRA Tags
2(1)

Principal Issues:

10 August 1995 External T.I. 9518455 - STRIPPED BONDS - ELIGIBLE FOR INVESTMENT ALLOWANCE?

Unedited CRA Tags
181.2(4)(c)
Summary Under
Tax Topics - Income Tax Act - Section 181.2 - Subsection 181.2(4)

Principal Issues:
Whether the interest coupon stripped from a bond qualifies for an investment allowance under subsection 181.2(4) of Part I.3.

3 August 1995 External T.I. 9519725 - RRSP WITHHODING RATES

Unedited CRA Tags
REG 103
Summary Under
Tax Topics - Income Tax Regulations - Regulation 103 - Subsection 103(4)

Principal Issues: Is withholding on RRSP payment lump sum
amounts calculated on a cumulative basis?

1 August 1995 External T.I. 9519665 - RRSP WITHDRAWALS DATE OF PAYMENT

Unedited CRA Tags
146(8)

Principal Issues: When must T4RSP be prepared

31 July 1995 External T.I. 9518445 - 50731

Unedited CRA Tags
55(3.1)
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(c)

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.

		951844
XXXXXXXXXX		D.A. Palamar

Attention: XXXXXXXXXX

July 31, 1995

Dear Sir:

Re: Subsection 55(3.1) of the Income Tax Act (the "Act")

28 July 1995 External T.I. 9500215 - THAT BUSINESS

Unedited CRA Tags
111(5)(a)(i)

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.

5-950021
XXXXXXXXXXJ. Teixeira
(613) 957-8953

Attention: XXXXXXXXXX

July 28, 1995

Dear Sirs:

Re: Subsection 111(5) of the Income Tax Act (the "Act")

28 July 1995 External T.I. 9516705 - MEANING OF PERIODIC PAYMENTS

Unedited CRA Tags
60.01
Summary Under
Tax Topics - Income Tax Act - Section 60.01
Words and Phrases
periodic payment

Principal Issues: Will lump sums paid in installments from
an FRA be treated as periodic payments

26 July 1995 External T.I. 9505005 - OVERSEA EMPLOYMENT TAX CREDIT

Unedited CRA Tags
122.3(1)

Principal Issues:

26 July 1995 External T.I. 9501585 - court ordered partition & sale disposition

Unedited CRA Tags
44(1) 13(21))d) 54(d)
Summary Under
Tax Topics - Income Tax Act - Section 44 - Subsection 44(1)

Principal Issues:

17 July 1995 External T.I. 9501435 - VACATION TRADING IN A FLEX PLAN -3RD ALTERNATIVE

Unedited CRA Tags
6(1)(a)

Principal Issues: tax implications to a health care spending account

12 July 1995 External T.I. 9428785 - GENERAL SCHEME OF PARTITION

Unedited CRA Tags
248(21)(b)
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21)

Principal Issues:

7 July 1995 External T.I. 9514615 - BENEFITS TO LIFE TENANT

Unedited CRA Tags
105(1) 105(2)

Principal Issues:

6 July 1995 External T.I. 9503565 - 118.1(1)

Unedited CRA Tags
110.1(1)(a)
Summary Under
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts

Principal Issues:

5 July 1995 External T.I. 9430695 - DONATION OF STROM SEWER AND EASEMENT - WHETHER GIFT?

Unedited CRA Tags
118.1(1)(d)

Principal Issues:

29 June 1995 External T.I. 9503695 - MEDICAL EXPENSE CREDIT - INVITRO FERTILIZATION

Unedited CRA Tags
118.2

Principal Issues:

7 June 1995 External T.I. 9513685 - GRANDFATHERING FROM LIMITED RECOURSE PROVISIONS

Unedited CRA Tags
143.2(7)

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.

				951368
XXXXXXXXXX						Cal Brown
(613) 957 8980

Attention: XXXXXXXXXX

Dear XXXXXXXXXX:

This is in reply to your facsimile transmission of May 17, 1995 concerning the application of the April 26, 1995 Technical Amendments.

31 May 1995 External T.I. 9432165 - WHETHER AGENT OF HER MAJESTY?

Unedited CRA Tags
118.1(1)

Principal Issues:

25 May 1995 External T.I. 9420855 - FAMILY FARM CORPORATION

Unedited CRA Tags
110.6(1) 73(4) 40(1) 40(1.1)

Principal Issues:
1. Shares of a family farm corporation transferred by mother to daughter. Whether: (a) mother could claim capital gain exemption, (b) subsection 73(4) applies to determine daughter's cost and, (c) mother could claim a reserve under subsections 40(1) & 40(1.1)?

Technical Interpretation - Internal

10 August 1995 Internal T.I. 9520746 - RRSP OVERCONTRIBUTION TAX EFFECT ON SPP

Unedited CRA Tags
204.2(1.1) 146(5) 60(v)

Principal Issues:

10 August 1995 Internal T.I. 9507937 - TUTORING COSTS AS A MEDICAL EXPENSE

Unedited CRA Tags
118.2(2)(e)

Principal Issues:
whether fees paid to a tutor qualify as a medical expense

9 August 1995 Internal T.I. 9519696 - REASONABLE AUTOMOBILE ALLOWANCE AND G.S.T.

Unedited CRA Tags
6(1)(b) REG 7306

Principal Issues:

8 August 1995 Internal T.I. 9517667 - COST OF IDENTICAL PROPERTY -- INVENTORY

Unedited CRA Tags
10(1) 47(1)
Summary Under
Tax Topics - Income Tax Act - Section 10 - Subsection 10(1)
escrowed shares are identical property

Principal Issues:

2 August 1995 Internal T.I. 9513447 - ALLOCATION OF PARTNERSHIP PROFITS AND LOSSES

Unedited CRA Tags
103 103(1.1)
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 103 - Subsection 103(1)

Principal Issues:

28 July 1995 Internal T.I. 9513397 - CLERGYMAN'S DEDUCTION - RELIGIOUS ORDER

Unedited CRA Tags
8(1)(c)

Principal Issues:

28 July 1995 Internal T.I. 9513997 - FOR ADMIN OF XXXXXXXXXX

Unedited CRA Tags
8(1)(c)
Summary Under
Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c)

Principal Issues:
whether the taxpayer was entitled to a deduction under para 8(1)(c), & more particularly whether the religious organization which appointed him was a religious denomination

27 July 1995 Internal T.I. 9519486 F - SERVICES A DOMICILE ALLOCATION FIN. DIRECTE QUÉBEC

Unedited CRA Tags
56(1)(u) 110(1)(f) 153(1) 118.2 REG 100 200

Principales Questions:

1. Quel est le traitement fiscal, en vertu de la Loi, des sommes reçues par un bénéficiaire du programme d'allocation financière directe? Est-ce qu'une déclaration de renseignements sur un formulaire prescrit devrait être produite?

2. Quel est le traitement fiscal, en vertu de la Loi, des sommes reçues par un préposé aux soins? Est-ce qu'une déclaration de renseignements sur un formulaire prescrit devrait être produite?

3. Est-ce qu'une entente est possible entre les gouvernements du Québec et du Canada pour simplifier les tâches administratives qui incombent à la personne âgée, à titre d'employeur, en ce qui a trait à l'application du «crédit d'impôt remboursable pour emplois familiaux»?

Position Adoptée:

26 July 1995 Internal T.I. 950977A - 6363-1 MEANING OF THE TERM REGULATED

Unedited CRA Tags
95

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.

		950977
XXXXXXXXXX		Olli Laurikainen
(613) 957-2116
Attention:  XXXXXXXXXX

July 26, 1995

Dear Sirs:

Re: Barbados Offshore Banking Act (the "BOBA")

24 July 1995 Internal T.I. 9514207 - CAPITAL GAINS ELECTION - PRINCIPAL RESIDENCE

Unedited CRA Tags
110.6(19) 110.6(1)

Principal Issues:
How to file the capital gains election in respect of a six acre parcel of land on which a principal residence is situated.

20 July 1995 Internal T.I. 9517946 - DEFERRED REVENUE AND LARGE CORPORATIONS TAX

Unedited CRA Tags
181(1) 181.2(3)
Summary Under
Tax Topics - Income Tax Act - Section 181.2 - Subsection 181.2(3)

Principal Issues:

12 July 1995 Internal T.I. 9517296 - REVOKE NONMEMBER RPP PLANS

Unedited CRA Tags
56(1)(a) 104(6)(c) 4(4)

Principal Issues:

29 June 1995 Internal T.I. 9506657 - EDUCATION TAX CREDIT

Unedited CRA Tags
118.5 118.6
Summary Under
Tax Topics - Income Tax Act - Section 118.6 - Subsection 118.6(1) - Qualifying Educational Program

Principal Issues:

15 June 1995 Internal T.I. 9514267 - CALC OF H&W TRUST INCOME -LATE FEE CHARGED TO CONTRIBUT

Unedited CRA Tags
104

Principal Issues:

6 June 1995 Internal T.I. 9504027 - DONATION

Unedited CRA Tags
118.1 110.6(1)

Principal Issues:

5 June 1995 Internal T.I. 9514576 - two residences maintained & principal residence

Unedited CRA Tags
54 45(2)

Principal Issues:

29 May 1995 Internal T.I. 9505526 - REVOCATION OF PENSION PLAN REGISTRATION

Unedited CRA Tags
147.1 104 149

Principal Issues:

26 April 1995 Internal T.I. 9414306 F - FELLOWSHIP

Unedited CRA Tags
115(2)(a) 115(2)(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.

		April 26, 1995
	Enquiries 	Rulings Directorate
	International Taxation Office	M.D. Gervais
	2540 Lancaster Road	7-941430

Attention: Dan Pavelic

Paragraph 115(2)(a) of the Act - Fellowships

29 March 1995 Internal T.I. 9425937 F - ALLOCATION-FRAIS DE DÉPLACEMENT-IMPOSABLE/NON IMPOSABLE?

Unedited CRA Tags
6(1)b) 8(1) 8(4) 81(3.1)

Principales Questions:

Est-ce que l'allocation pour l'usage d'un véhicule à moteur ainsi qu'une allocation pour repas, versées par XXXXXXXXXX à certains de ses employés lorsqu'ils se rendent XXXXXXXXXX auxquelles ils sont affectés, sont imposables?

Position Adoptée:

Ministerial Letter

21 August 1995 Ministerial Letter 9521258 - CHILD CARE EXPENSES

Unedited CRA Tags
63

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.

XXXXXXXXXX 952125
J. A. Szeszycki
August 21, 1995

Dear XXXXXXXXXX:

Re: Child Care Expenses