Translations of recent severed letters

Bundle Date Translated severed letter Summaries under Summary descriptor
2026-03-18 2025 Ruling 2025-1054291R3 - Post-Mortem Hybrid Pipeline Income Tax Act - Section 84 - Subsection 84(2) hybrid double pipeline with a choice between amalgamating or winding up
2026-03-11 22 August 2025 External T.I. 2021-0904251E5 F - Taxation of interest from French tax-free accounts Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) French tax-advantaged accounts were subject to taxation to a Cdn resident
Income Tax Act - Section 233.7 the 1st-time s. 233.7 exemption from filing a T1135 can be used only once
15 December 2025 External T.I. 2025-1062551E5 F - Relevant Group Entity Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(c) - Subparagraph 84.1(2.31)(c)(iii) the s. 129(6) income recharacterization rule is not relevant to whether a corporation carries on an active business for purposes of being a relevant group entity
Income Tax Act - Section 256 - Subsection 256(5.1) being the lessor to the subject corporation likely does not signify de facto control
2026-02-18 20 November 2025 External T.I. 2022-0940101E5 F - AAPE - Sommes déposées en fidéicommis - contrat d’arrangements préalables de services funéraires Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation funeral prepayments received in trust under the applicable Quebec Act are not assets of a funeral company
2026-02-04 19 August 2025 External T.I. 2025-1066571E5 - Distribution of settlement monies to First Nation Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(c) Indian band council is always a s. 149(1)(c) exempt municipality
Income Tax Act - Section 3 - Paragraph 3(a) distribution of land claims settlement amount by Indian band council to its members (including non-Indians) would not constitute income from a source
Income Tax Act - Section 104 - Subsection 104(13) land compensation received by a trust formed an Indian band council would be treated as a capital distribution when distributed
2026-01-28 2024 Ruling 2024-1029151R3 F - Hybrid Post-mortem pipeline Income Tax Act - Section 84 - Subsection 84(2) pipeline transaction for transfer of preferred shares of estate in investments company to Newco held by children’s trust (also holding the common shares)
2026-01-21 9 October 2025 APFF Financial Planning Roundtable Q. 1, 2025-1070231C6 F - Impôt à payer sur les placements interdits ou non admissibles et remboursement d’impôt Income Tax Act - Section 207.04 - Subsection 207.04(4) there is no set-off of an allowable refund of s. 207.04(1) tax of a controlling individual against that tax if the allowable refund arose in the following year
Income Tax Act - Section 207.07 - Subsection 207.07(2) allowable refund arising in a subsequent year is to be dealt with separately by CRA pursuant to s. 207.07(2), rather than set-off against the s. 207.04(1) tax under s. 207.07(1)
9 October 2025 APFF Financial Planning Roundtable Q. 2, 2025-1068491C6 - Obligation de produire un Feuillet T5 Income Tax Regulations - Regulation 201 - Subsection 201(1) - Paragraph 201(1)(b) - Subparagraph 201(1)(b)(i) requirement for T5 reporting by the issuer of a fully registered bond both any s. 12(4) interest on stripped coupons and of the interest-coupon payments
Income Tax Regulations - Regulation 201 - Subsection 201(4) Reg. 201(4) reporting of accrued interest is backed out of subsequent Reg. 201(1)(b)(i) reporting of interest-coupon payment
9 October 2025 APFF Financial Planning Roundtable Q. 3, 2025-1068401C6 - Déductibilité des intérêts et règle générale anti-évitement Income Tax Act - Section 245 - Subsection 245(4) structuring to satisfy the s. 20(1(c) direct-use test is not contrary to the amended GAAR
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) restructuring to create direct income-producing use did not contravene GAAR
9 October 2025 APFF Financial Planning Roundtable Q. 4, 2025-1061831C6 F - Transfert direct à un régime enregistré d’épargne retraite dans les 60 premiers jours de l’année et l’Annexe 7 Income Tax Act - Section 60 - Paragraph 60(l) - Subparagraph 60(l)(v) a s. 60(l)(v) RRIF-to-RRSP direct transfer in the first 60 days of the year must be reported on the Sched. 7 for the previous taxation year
9 October 2025 APFF Financial Planning Roundtable Q. 5, 2025-1062481C6 F - Revenus assujettis à l’impôt sur le revenu fractionné Income Tax Regulations - Regulation 201 - Subsection 201(1) no notation required on a T5 or T3 slip that the income is TOSI
Income Tax Act - Section 120.4 - Subsection 120.4(2) the payer of TOSI does not have to identify it as such on its tax-reporting slips
9 October 2025 APFF Financial Planning Roundtable Q. 6, 2025-1061811C6 F - Application du paragraphe 12(12) de la Loi de l’impôt sur le revenu à une perte Income Tax Act - Section 12 - Subsection 12(14) s. 12(14) does not deny losses on the disposition of housing units
9 October 2025 APFF Financial Planning Roundtable Q. 7, 2025-1062470C6 - Vente partielle et revente précipitée Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(a) - Subparagraph 12(13)(a)(i) a housing unit includes a co-ownership interest therein for purposes of the flipped property rules
9 October 2025 APFF Financial Planning Roundtable Q. 10, 2025-1061821C6 F - Prestation de pension de la sécurité de la vieillesse reçue dans une année d’imposition antérieure et qui doit être remboursée Income Tax Act - Section 60 - Paragraph 60(n.2) estate is not entitled to an s. 60(1)(n) or (n.2) deduction when it repays an excess OAS benefit that was included in the deceased’s income
Income Tax Act - Section 60 - Paragraph 60(n) an estate is not entitled to deduct an OAS overpayment to the deceased that it repays
9 October 2025 APFF Financial Planning Roundtable Q. 11, 2025-1068471C6 F - CELIAPP et acquisition d’une habitation admissible en partie et non en totalité Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) the acquisition of an undivided interest in a qualifying home can be accommodated
9 October 2025 APFF Financial Planning Roundtable Q. 12, 2025-1068481C6 F - CELIAPP – Acquisition par donation et retrait admissible Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) the gift of a qualifying home by notarized deed to the FHSA holder would satisfy para. (c)
9 October 2025 APFF Financial Planning Roundtable Q. 13, 2025-1070191C6 F - Retrait d’un placement par opération de swap Income Tax Act - Section 207.04 - Subsection 207.04(4) the transfer of a registered plan investment to the controlling individual shortly before its becoming non-qualified is a swap transaction subject to non-refundable tax
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Swap Transaction - Paragraph (c) the transfer of a registered plan investment to the controlling individual shortly before its becoming non-qualified is a swap transaction
2026-01-14 9 October 2025 APFF Roundtable Q. 1, 2025-1071431C6 - Capital dividend and inclusion rate for 2024 Income Tax Act - Section 184 - Subsection 184(3) CRA cannot cancel Part III tax payable as a result of the CGIR being maintained at ½
Income Tax Act - Section 220 - Subsection 220(3.1) CRA does not have the power to waive tax, e.g., Pt. III tax
9 October 2025 APFF Roundtable Q. 2, 2025-1071611C6 - Application ou non des paragraphes 227(8) et 227(9) L.I.R Subsections 227(8), 227(9) and 162(7) Income Tax Act - Section 162 - Subsection 162(7) no penalty under s. 162(7) for failure to withhold or remit Pt. XIII tax on an s. 214(16)(a) deemed dividend
Income Tax Act - Section 227 - Subsection 227(8.5) - Paragraph 227(8.5)(a) no penalty under s. 227(9) for failure to withhold or remit Pt. XIII tax on a s. 214(16)(a) deemed dividend because time required to apply s. 18(4)
Income Tax Act - Section 227 - Subsection 227(8.3) - Paragraph 227(8.3)(b) interest accrued under s. 227(8.3)(b) between date of s. 214(16)(a) deemed dividend and remittance of Part XIII tax
Income Tax Act - Section 227 - Subsection 227(9) s. 227(9) inapplicable where no withholding (and also where there was no obligation to withhold pursuant to s. 227(8.5)(a)
9 October 2025 APFF Roundtable Q. 3, 2025-1071581C6 F - Fusion et actions admissibles de petite entreprise Income Tax Act - Section 256 - Subsection 256(9) acquisition of CCPC for SBC purposes occurs at its actual time irrespective of s. 256(9)
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) an amalgamation of Acquireco with Targetco should be treated notwithstanding s. 87(2)(a) as being sequenced after the Targetco acquisition
9 October 2025 APFF Roundtable Q. 4, 2025-1071461C6 - Méthode estimative pour acompte provisionnel et décès : comment se calculent les intérêts Income Tax Act - Section 220 - Subsection 220(3.1) CRA may relieve interest on deficient or insufficient pre-death instalments
9 October 2025 APFF Roundtable Q. 5, 2025-1071471C6 F - Déduction pour la mobilité de la main-d’œuvre pour les gens de métier – Frais de réinstallation temporaire Income Tax Act - Section 8 - Subsection 8(14) - Paragraph 8(14)(e) - Subparagraph 8(14)(e)(iii) s. 8(14)(e)(iii) does not preclude deduction for the excess of the relocation expense over a non-taxable allowance received
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(t) excess of relocation expenses over allowance received was deductible
9 October 2025 APFF Roundtable Q. 6, 2025-1071481C6 F - Transfert intergénérationnel d’entreprise – entité pertinente du groupe Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(a) simultaneous sale of QSBCS of an Opco and a Realtyco specified group entity to a childco could satisfy s. 84.1(2.31)(a) or (2.32)(a)
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(a) no prohibition against the use of the intergenerational transfer rules on a simultaneous sale of 2 QSBCS corps (one a specified group entity) to a childco

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