Income Tax Severed Letters - 2023-08-23

Technical Interpretation - External

25 November 2022 External T.I. 2022-0935271E5 - Mineral Resource Cert - XXXXXXXXXX Project

Unedited CRA Tags
Definition of "mineral resource" in subsection 248(1)

Principal Issues: Whether NRCan can certify that the principal mineral to be extracted from the hard-rock lithium deposit of the taxpayer will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.

19 June 2020 External T.I. 2020-0851841E5 - Medical expenses outside Canada

Unedited CRA Tags
118.2(2)(a); 118.2(2)(o); 118.2(2)(g); 118.2(2)(h)

Principal Issues: Whether medical services obtained outside Canada, and related travel costs would be eligible for the medical expense tax credit in a given situation.

Position: Question of fact, but likely yes in the circumstances, provided that the travel expenses meet the conditions in paragraphs 118.2(2)(g) and (h) of the Act.

Reasons: As a general rule, eligible medical expenses are not restricted to those paid in Canada or for medical services provided in Canada. Travel expenses must meet the conditions in paragraphs 118.2(2)(g) and (h) of the Act.

Technical Interpretation - Internal

11 May 2023 Internal T.I. 2022-0936701I7 - Interest on adj income by a loss carry forward

Unedited CRA Tags
111, 161
Summary Under
Tax Topics - Income Tax Act - Section 161 - Subsection 161(1)
no arrears interest would arise where non-capital loss carryforwards eliminated a tax payable balance arising from reassessments
Summary Under
Tax Topics - Income Tax Act - Section 161 - Subsection 161(7)
S. 161(7) not relevant where loss carryforward

Principal Issues: Whether interest would be charged pursuant to subsection 161(7) on the subsequent application of a loss carry forward.

Position: No.

Reasons: Subsection 161(7) only applies to a loss carry back. 161(1) applies and the non-capital losses incurred in previous years will simply offset the increase in income. Consequently, the tax calculation will not change, and there will be no arrears interest charged on the reassessment.