Income Tax Severed Letters - 2020-01-08

Technical Interpretation - External

12 November 2019 External T.I. 2019-0822161E5 F - T5008 Statement of Securities Transactions

Unedited CRA Tags
Section 230 of the Regulations
Summary Under
Tax Topics - Income Tax Regulations - Regulation 230 - Subsection 230(1) - Sale
a contribution of shares to a TFSA is not a “sale” for Reg. 230 purposes
Words and Phrases
sale
Summary Under
Tax Topics - Income Tax Regulations - Regulation 230 - Subsection 230(2)
transfer of listed shares from taxable brokerage account to individual’s TFSA did not generate T5008 reporting requirement

Principal Issues: Whether a trader or dealer of securities has to file a T5008 Statement of Securities Transactions when an individual transfers his publicly traded shares of the capital stock of a corporation to a TFSA as contribution to his TFSA?

Position: No.

Reasons: Not a sale of securities for the application of subsection 230(2) of the Regulations.

22 October 2019 External T.I. 2019-0805221E5 - Fraudulent investment scheme

Unedited CRA Tags
12(1)(c); 20(1)(p); 39(1)

Principal Issues: How are various losses incurred by a taxpayer as a result of their investment in a fraudulent investment scheme treated for income tax purposes?

Position: See response.

Reasons: Question of fact and the legislation.

Technical Interpretation - Internal

6 August 2019 Internal T.I. 2018-0785701I7 - Eligible dependant credit

Unedited CRA Tags
56.1(4), 118(1)(b), 118(4), 118(5), 251(2), 251(6), 252. (1)
Summary Under
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b)
a blood relative may be entitled to a s. 118(1)(b) deduction for a child even though the two parents are paying and receiving support respecting the child

Principal Issues: Whether a taxpayer can claim the eligible dependant credit (EDC) pursuant to 118(1)(b) under five hypothetical scenarios.

Position: See responses.

Reasons: See responses.