Principales Questions: 1. Est-ce que le paragraphe 75(2) est susceptible de trouver application dans le cadre de la situation hypothétique à l'égard de sociétés bénéficiaires de la fiducie d'investissement à participation unitaire ?
2. Est-ce que les sociétés bénéficiaires seront imposées sur les revenus de la fiducie en vertu du paragraphe 104(13), permettant que les choix des paragraphes 104(13.1) et 104(13.2) puissent être effectués ?
3. Dans le cas où le paragraphe 75(2) trouverait application à l'égard d'une fiducie d'investissement à participation unitaire, serait-il possible d'invoquer l'alinéa 248(28)a) afin de prévenir une double imposition découlant de réductions du PBR de la participation au capital d'un bénéficiaire selon l'alinéa 53(2)h)?

Position Adoptée: 1. Oui.
2. Généralement oui.
3. Commentaires généraux.

Raisons: 1. Question de faits.
2. Question de faits et libellé de la LIR.
3. Question de faits, application de la LIR et position prévue au par. 10 du IT-369R.

21 April 2009 External T.I. 2008-0304081E5 - US social security taxes (FICA) - 126(1)

Unedited CRA Tags

126(1), Article II, XXIV Canada-US Tax Convention

Principal Issues: Whether premiums paid by a Canadian resident under the United States Federal Insurance Contributions Act (FICA) are creditable under the foreign tax credit allowed under subsection 126(1) of the Income tax act?

Position: Yes.

Reasons: Wording of the ITA and the Canada - US Tax Convention, previous position.

20 April 2009 External T.I. 2008-0303651E5 - Tax Implications of Leasing Arrangements

Unedited CRA Tags

9(1), 18(1)(b)

Summary Under

Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property

purchase option does not entail ownership

Principal Issues: The tax implications of a selection of leasing arrangements which would include leases with and without purchase options.

Position: General comments

Reasons: It is a question of fact to be determined based on the legal relationship created by the terms of the agreement- ITTN # 21

XXXXXXXXXX 2008-030365
V. Srikanth
April 20, 2009

17 April 2009 External T.I. 2009-0310931E5 - Children's Fitness Tax Credit

Unedited CRA Tags

118.03 Regulation 9400(2)

Principal Issues:
Whether a program for children's swimming lessons held for more than eight weeks but not eight consecutive weeks because of an interruption for a statutory holiday in one week is eligible for the children's fitness tax credit.

Position:
Yes, assuming that all other requirements are met.

Reasons:
If a particular swimming program takes place several times during the year and lessons are normally held for 8 consecutive weeks (or more), then assuming that all the other criteria are met, CRA will consider the consecutive week requirement to be met in a situation in which 8 or more sessions are held, but a statutory holiday interrupts the consecutive week requirement during one particular session of the program.

XXXXXXXXXX 2009-031093
I. Landry, M. Fisc.
April 17, 2009

Conference

8 April 2009 Roundtable, 2008-0272371C6 - Limitation of Benefits

Unedited CRA Tags

Art XXIX A (2)(d) & (e)

Principal Issues: How will Canada interpret the reference to "in connection with or incidental to" in applying paragraph 3 of Article XXIX A of the Canada-US Income Tax Convention, as amended by the Fifth Protocol (the "Canada-US Treaty") - what is the required nature of the connection, and the required degree of the connection?

Position: See below.

Reasons: Technical Explanation to the Canada-US Treaty

Technical Interpretation - Internal

23 April 2009 Internal T.I. 2008-0297841I7 - Deferred Bonus and Retiring Allowance

Unedited CRA Tags

248(1) Salary Deferral Arrangement 6(1)(a) 6(11)

Principal Issues:
1. In which taxation year would an employee have to include in his/her income a bonus that he/she is entitled to receive but requests his/her employer to defer the payment of the bonus until the next taxation year?
2. Would the same rule apply to a retiring allowance?

Position:
1. The bonus will be taxable in the calendar year that the employee was entitled to receive the payment.
2. Yes, unless the employee chooses the instalment option on or before the employment is terminated.

Reasons:
1. Doctrine of "constructive receipt" or SDA rules apply where an employee is legally entitled in a calendar year to receive the payment of the bonus and the employer is obligated to pay it but the payment is deferred to a subsequent calendar year to accommodate the employee.
2. Doctrine of "constructive receipt" applies where the employee has the right to the payment of the retiring allowance in the year and the employer is obligated to pay it but the payment is deferred to accommodate the employee.

22 April 2009 Internal T.I. 2009-0312261I7 F - Étude de faisabilité

Unedited CRA Tags

18(1)a) 18(1)b) 9(1)

Summary Under

Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense

expenses of optimizing manufacturing operations including of related shelving and other equipment purchases were on income account

Principales Questions: (1) Est-ce que les frais de consultation externe, les salaires des employés et les frais internes reliés à la mise en place du processus de production Kaisen sont déductibles dans l'année où ils sont été engagés en vertu du paragraphe 9(1) de la Loi de l'impôt sur le revenu ou s'il s'agit de dépenses en capital non déductibles selon l'alinéa 18(1)b)?
(2) Est-ce que la position de l'ARC énoncée dans l'interprétation 9702057 portant sur la norme ISO peut être applicable dans la situation donnée?
(3) Est-ce que la politique administrative émise au paragraphe 5 du bulletin d'interprétation IT-475 peut être applicable, de telle sorte que toutes les dépenses reliées au projet qui dépasse l'étape de l'étude de faisabilité soient considérées comme étant des dépenses en immobilisations admissibles?

Position Adoptée: (1) Il s'agit de dépenses d'exploitation (de nature courante) et non pas de dépenses de nature capitale.
(2) Dans la situation donnée, notre position est similaire à celle énoncée dans l'interprétation 9702057.
(3) La politique administrative énoncée au paragraphe 5 du IT-475 n'est pas applicable puisque toutes les dépenses engagées relativement au projet Kaisen ne visent pas à déterminer si un bien en immobilisation est créé ou acquis.

Raisons: Interprétation de la loi, des positions administratives et de la jurisprudence

21 April 2009 Internal T.I. 2008-0269471I7 - Definition of "exploitation" for OETC

Unedited CRA Tags

122.3

Principal Issues: Definition of "exploitation" for Overseas Employment Tax Credit

Position: No universal definition

Reasons: Activities that will be considered to be "exploitation" of the natural resource will differ depending on the natural resource being exploited.

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Income Tax Severed Letters - 2009-05-01

Ministerial Correspondence

Technical Interpretation - External

Conference

Technical Interpretation - Internal