Income Tax Severed Letters - 1997-08-22

Miscellaneous

7 February 1997 9634801 - VENTURE CAPITAL CORPORATION

Unedited CRA Tags
39(4) 39(5)(a)

Principal Issues:

Whether a venture capitalist qualifies as a dealer or dealer in securities within the meaning of paragraph 39(5)(a) of the Act.

Position:

No, where the activities of the taxpayer are limited to those of a true venture capitalist as described in the attached memo.

Reasons:

Ruling

30 November 1996 Ruling 9635433 - REORGANIZATION

Unedited CRA Tags
55(3)(a) 55(4)

Principal Issues:

Purpose of father retaining control of transferee corp. Reason given was to ensure that share value not reduced.

Position: accepted

Reasons: previously accepted in ruling 9612511

1996 Ruling 9632783 - : XXXXXXXXXX

Unedited CRA Tags
: 26(2), 87(2)(g.1), 111(5.3)

Principal Issues:
Change in facts - minor amendments to the Ruling letter and a delay in physically issuing the letters patent of amalgamation.

Position:
Granted.

Reasons:
The letters patent of amalgamation will specify effective date of amalgamation as originally proposed in the Ruling. This is the time of the amalgamation under XXXXXXXXXX the Income Tax Act (E5C758, E53949 and E9300835). Other changes are minor.
XXXXXXXXXX

1996 Ruling 9630533 - : RRIF RRSP XXXXXXXXXX

Unedited CRA Tags
: 146(8.8), 146.3(6), 146(8.1), 6

Principal Issues:
XXXXXXXXXX

Position:
XXXXXXXXXX

Reasons:
In accordance with ATR-24 and ruling 3-961288
XXXXXXXXXX

30 November 1995 Ruling 9630963 - XXXXXXXXXX TAX SHELTER PARTNERSHIP

Unedited CRA Tags
96(2.2) 143.2

Principal Issues:
1. XXXXXXXXXX deal which is almost identical to one previously issued for XXXXXXXXXX (file #952030, dated XXXXXXXXXX/96). The Bank described in the prior ruling was limited by regulatory requirements to the amount it may lend to any one partnership. The anticipated funding needed by XXXXXXXXXX would exceed the Bank's cap. Therefore, two new partnerships are being set up to do the same deal with the Bank. They have also requested a ruling for XXXXXXXXXX (our file #963097). The main issue in this file was whether the draft limited-recourse debt rules in 143.2 would impact this ruling.

2. Does the application of Regulation 7000 deem interest to be paid to XXXXXXXXXX so that withholding tax would be exigible (or is there some sort of benefit conveyed), in the event that XXXXXXXXXX gives the XXXXXXXXXX Partnership a short-term non-interest bearing loan to finance the XXXXXXXXXX expenses (see paragraph 20).

Position:

1. Same rulings and opinions as given previously.

2. Nothing we need to comment on in the ruling.

Reasons:

30 November 1995 Ruling 9630973 - XXXXXXXXXX TAX SHELTER PARTNERSHIP

Unedited CRA Tags
96(2.2) 143.2

Principal Issues:
1. XXXXXXXXXX deal which is almost identical to one previously issued for XXXXXXXXXX (file #952030, dated XXXXXXXXXX/96). The Bank described in the prior ruling was limited by regulatory requirements to the amount it may lend to any one partnership. The anticipated funding needed by XXXXXXXXXX would exceed the Bank's cap. Therefore, two new partnerships are being set up to do the same deal with the Bank. They have also requested a ruling for XXXXXXXXXX (our file #963096). The main issue in this file was whether the draft limited-recourse debt rules in 143.2 would impact this ruling.

2. Does the application of Regulation 7000 deem interest to be paid to XXXXXXXXXX so that withholding tax would be exigible (or is there some sort of benefit conveyed), in the event that XXXXXXXXXX gives the XXXXXXXXXX Partnership a short-term non-interest bearing loan to finance the XXXXXXXXXX expenses (see paragraph 20).

Position:

1. Same rulings and opinions as given previously.

2. Nothing we need to comment on in the ruling.

Reasons:

30 November 1995 Ruling 9636773 - DSLP

Unedited CRA Tags
REG 6801

Principal Issues: Routine 6801 plan

Position: Routine

Reasons: Routine

30 November 1995 Ruling 9631363 - DEDUCTIBILITY

Unedited CRA Tags
9

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							963136
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: XXXXXXXXXX

30 November 1995 Ruling 9631383 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

Principal Issues:

30 November 1995 Ruling 9629853 - CHANGE OF CONTROL TRIGGERING EVENT

Unedited CRA Tags
212(1)(b)(vii)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Subparagraph 212(1)(b)(vii)
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Subparagraph 212(1)(b)(vii)
de facto change of control

Principal Issues:

Change of Control triggering event for 212(1)(b)(vii) default purposes

Position:

OK for 212(1)(b)(vii)

Reasons:

30 November 1995 Ruling 9632733 - CHANGE IN FACTS

Unedited CRA Tags
248(1)

Principal Issues:

Change in facts to Ruling 960165-3.

1.Will we allow repayment of the shareholder loans and a "special dividend"; the proceeds of which will be used to pay the personal income tax liabilities of the shareholders; to be financed by way of DPS issued out of the company?

2.Will we allow payables that were in part owing at the time the original Ruling letter was issued, but were omitted from the list due primarily "poor" accounting records, to be refinanced by way of DPS?

3.Will we grant an extension of time?

Position:

1.No, refinancing of related party debt of the company is not permissable by the legislation and a "special dividend payment" to the shareholder that is financed by DPS is not permissable since it takes the DPS too far (see E9420543). In effect, the taxpayer is requesting that DPS financing be made available to individuals which is clearly inconsistent with the Act.

2.Permitted, nothing sinister here. It was recognized at the time of the original request that the accounting records of XXXXXXXXXX were in a mess. Further, we recognize that generally such "specified" or "agreed" amounts, where they represent normal accruals to a point in time, are approximations only and the actual amounts could vary slightly depending on the length of time once the final date of the transaction is determined.

3.Granted.

Reasons: See above.

30 November 1995 Ruling 9630223 - POST BUTTERFLY FINANCING

Unedited CRA Tags
55(3)(b) 55(3.1)

Principal Issues:

post-butterfly financing

Position:

no effect on butterfly

Reasons:

30 November 1995 Ruling 9634853 - LOSS CONSOLIDATION

Unedited CRA Tags
20(1)(c) 15(1) 56(2) 246(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.

XXXXXXXXXX							1-963485
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear XXXXXXXXXX

Re: XXXXXXXXXX
Advance Income Tax Ruling 962559
dated XXXXXXXXXX, 1996 (the "Ruling")

Technical Interpretation - External

29 July 1997 External T.I. 9717835 - RRSP PROPERTY LOSSES

Unedited CRA Tags
146

Principal Issues:

What can be done when an RRSP subscribes for shares and they are not received?
What are the tax consequences?

Position:

What can be done in such circumstances is a question of law not covered by the Act.
In similar situations we have allowed any restitution received to be returned to the RRSP.

Reasons:

7 July 1997 External T.I. 9705815 - TUITION TAX CREDIT

Unedited CRA Tags
118.5

Principal Issues:

There is no technical issue. The problem relates to Employment Insurance Act claimants who are not entitled to claim the tuition tax credit even if they have been issued a receipt for income tax purposes. The letter has, accordingly, been referred to operations branch.

Position:

Reasons:

26 March 1997 External T.I. 9636465 - C.G. EXEMPTION - NON-RESIDENT INDIVIDUAL

Unedited CRA Tags
110.6(5) 110.6(13) 110.6(3)

Principal Issues:

Why the deemed residence rules of subsection 110.6(5) of the Act do not apply for purposes of subsection 110.6(13) of the Act.

Position:

Subsection 110.6(5) of the Act only applies for purposes of subsections 110.6(2) and (2.1) (and subsection (3) before its repeal) of the Act, and not for purposes of subsection 110.6(13) of the Act.

Reasons:

5 March 1997 External T.I. 9634955 - TRANSFER FROM IRA TO RRSP

Unedited CRA Tags
60(j)(ii)

Principal Issues:

Can an amount be transferred from an IRA to and RRSP?

Position:

Yes, if all the conditions of 60(j)(ii) are satisfied

Reasons:

25 February 1997 External T.I. 9637515 - ATTRIBUTION ON SALE OF JOINTLY HELD PRIN RES

Unedited CRA Tags
54 104(2)

Principal Issues:

attribution of income from the investment of funds received for the disposition of a principal residence which was held jointly by a married couple but which was acquired primarily by means of a mortgage which was paid by only one spouse

Position:

income should be reported in proportion to each spouse's respective contribution of capital to acquire the property

Reasons:

11 February 1997 External T.I. 9635285 - MEDICAL EXPENSES

Unedited CRA Tags
118.2

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.

		963528
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

February 11, 1997

Dear Sirs:

Re: Private Health Services Plan (PHSP)

This is in reply to your letter of October 23, 1996 concerning the above-noted subject.

11 February 1997 External T.I. 9638505 - EDUCATION TAX CREDIT

Unedited CRA Tags
118.6

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.

		963850
XXXXXXXXXX		M. Eisner

Attention: XXXXXXXXXX

February 11, 1997

Dear Sirs:

Re: Education Tax Credit

This is in reply to your letter of November 14, 1996 concerning the above-noted subject.

11 February 1997 External T.I. 9637705 - ALIMONY

Unedited CRA Tags
60(b)

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.

		963770
XXXXXXXXXX	M. Eisner

February 13, 1997

Dear XXXXXXXXXX:

Re: Child Support in Arrears

This is in reply to your letter of October 28, 1996 concerning the above noted-subject.

29 January 1997 External T.I. 9635975 - PARTNERSHIP TO SOLE PROPRIETOR

Unedited CRA Tags
14(3) 98(5) 80
Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Excluded Obligation

Principal Issues:

cost of property received by proprietor who carries on business of partnership

Position:acb=cost

Reasons:law

29 January 1997 External T.I. 9634945 - DONATIONS TO NPO

Unedited CRA Tags
110.1
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110.1 - Subsection 110.1(1) - Paragraph 110.1(1)(a)

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.

		963494
XXXXXXXXXX	B. Kerr

Attention: XXXXXXXXXX

January 29, 1997

Dear Sirs:

Re: Donations to a Non-Profit Organization

29 January 1997 External T.I. 9636475 - LEASEHOLD INTEREST

Unedited CRA Tags
REG 1102

Principal Issues:

1)Whether a disposition of a leasehold interest would be capital gain
2)Whether a leasehold interest in land is depreciable property

Position:

1)Question of fact - Could be capital gain or business income if renting property forms part or all of a business being carried on.
2)Provided a capital cost has been incurred, the leasehold interest would be a class 13 asset provided the leasehold was acquired for purpose of gaining or producing income and was not a prepayment of rent.

Reasons: ITA

28 January 1997 External T.I. 9637715 - RETIRING ALLOWANCE AFFILIATE SCHOOL BOARDS

Unedited CRA Tags
248(1) 60(j.1)(iv)

Principal Issues:

Whether school boards in the Province of Ontario are considered to be affiliated for purposes of paying a retiring allowance.

Position:

School boards in the Province of Ontario are not affiliated.

Reasons:

28 January 1997 External T.I. 9633415 - REG CLINICAL COUNSELLORS OF BC AS MEDICAL PRACTITIONERS

Unedited CRA Tags
118.4(2)

Principal Issues:

whether registered clinical counsellors of BC are medical practitioners

Position:

not presently although we have been advised that the provincial Health Professions Council is considering an amendment to the Health Professions Act which would change our response

Reasons:

14 January 1997 External T.I. 9635185 - CANADIAN NEWSPAPER OR PERIODICAL

Unedited CRA Tags
19(5) 19(8)

Principal Issues:

Whether: (a) a particular newspaper qualifies as a "Canadian issue" of a "Canadian newspaper or periodical" as defined in ss. 19(5); and (b) whether ss. 19(8) applies to the arrangement.

Position:

Should request an advance ruling (although it is uncertain whether we can rule on ss. 19(8)).

Reasons:

20 December 1996 External T.I. 9634785 - INTEREST INCOME OF INDIAN FROM ON-RESERVE BANK BRANCH

Unedited CRA Tags
81(1)(a)

Principal Issues:

20 December 1996 External T.I. 9630725 - OWNERSHIP OF A HOUSE

Unedited CRA Tags
38

Principal Issues:

Ownership of a house built by a daughter and her husband on a parcel of land owned by the mother.

Position:

Question of fact. Pertinent information was provided.

Reasons:

20 December 1996 External T.I. 9637085 - DAMAGES (PERSONAL INJURY) OR RETIRING ALLOWANCE

Unedited CRA Tags
248

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.

		963708
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

December 20, 1996

Dear Sirs:

Re: Damages - XXXXXXXXXX

18 December 1996 External T.I. 9637325 - LIMITED PARTNERSHIP MORTGAGE, RRSP

Unedited CRA Tags
146(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.

963732
XXXXXXXXXX M.P.Sarazin

Attention: XXXXXXXXXX

December 18, 1996

Dear Sirs:

Re: Limited Partnership Mortgage

18 December 1996 External T.I. 9637865 - ABIL

Unedited CRA Tags
39

Principal Issues:

Are intercorporate dividends taxable dividends for purposes of 39(1)(c)(vi)

Position:

Yes see def of div in 89(1).

Reasons:

17 December 1996 External T.I. 9634985 - SELLING COSTS IF DISPOSITION IS ONLY DEEMED

Unedited CRA Tags
9 67

Principal Issues:

whether outlays for reasonable selling and legal costs can be taken into account when there is a deemed disposition of property at fair market value

Position:

only if such costs are made or incurred. The determination of whether certain expenses are deductible or not relies upon whether such expenses have been made or incurred and not upon whether there is an actual or deemed disposition

Reasons:

16 December 1996 External T.I. 9638355 - LEASING & SPARE PARTS

Unedited CRA Tags
REG 1100

Principal Issues:

is the icome from the sale of spare parts to be considered as the selling and servicing of property of the same type as that of products sold and leased?

Position:

yes

Reasons:

12 December 1996 External T.I. 9637445 - RRSP ADMINISTRATION FEES PAID BY EMPLOYER

Unedited CRA Tags
146(1) 20(1)(bb)

Principal Issues:

Where the employer pays the annual administration fee for it's employee, will it be an employment benefit to the employee?

Position:

The payment will be considered an employment benefit and taxable to the employee under paragraph 6(1)(a) of the Act. However, the payment will not be considered the payment of a premium to the RRSP, nor a gift to an RRSP for purposes of Part X.1 of the Act.

Reasons:

12 December 1996 External T.I. 9637695 - STRUCTURED SETTLEMENTS

Unedited CRA Tags
56(1)(d)

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.

		963769
XXXXXXXXXX		M. Eisner

Attention: XXXXXXXXXX

December 12, 1996

Dear Sirs:

Re: Ontario Automobile Insurance and Structured Settlements

This is in reply to your letter of November 7, 1996 concerning the above-noted subject.

11 December 1996 External T.I. 9638155 - RRSP INVESTMENT IN SMALL BUSINESS

Unedited CRA Tags
4900

Principal Issues:

How can RRSP invest in small business.

Position:

Routine reply sent to taxpayer as requested.

Reasons:

10 December 1996 External T.I. 9634245 - DEEMED DIVIDEND - FOREIGN CURRENCY DENOMINATED SHARES

Unedited CRA Tags
191(4) 191(5)

Principal Issues:

For purposes of Part VI.1 tax - when shares denominated in a foreign currency are redeemed at their foreign currency issue amount, would the dividend caused by currency fluctuation be considered to be an excluded dividend for purposes of 191(4) and (5) ?

Position:

Only the amount up to the original issue amount would be considered to be excluded - any further amount due to currency fluctuation would not be excluded by virtue of 191(5).

Reasons:

6 December 1996 External T.I. 9638615 - RETIRING ALLOWANCE QUESTION OF FACT

Unedited CRA Tags
248(1)

Principal Issues: Treating a payment as a retiring allowance.

Position: General comments

Reasons: Routine information.

25 November 1996 External T.I. 9633465 - Advertising expenses

Unedited CRA Tags
19(1) 241(1)

Principal Issues:

Can we advise third party whether subsection 19(1) of the Act applies with respect to a particular publication by a particular publisher.

Position:

No comment.

Reasons:

20 November 1996 External T.I. 9634735 - ALCO DISPENSING

Unedited CRA Tags
80

Principal Issues:

Comment requested regarding the decision in Alco Dispensing (96 DTC 1586) and IT-293R paragraph 25

Position:

Decision of Tax Court is under appeal - unable to offer any meaningful comment

Reasons:

2 October 1996 External T.I. 9632515 - XXXXXXXXXX-GUIDELINE 4

Unedited CRA Tags
81(1)(a)

Principal Issues:

Technical Interpretation - Internal

15 May 1997 Internal T.I. 9635617 - TRANSFER OF SHARES OF AN NPO HELD IN TRUST

Unedited CRA Tags
149(1)(l) 149(1)(k) 69(1)(b)(ii) 149(2) 56(2)

Principal Issues:

4 March 1997 Internal T.I. 9632417 - Inventory v. capital, GST

Unedited CRA Tags
9

Principal Issues:

Whether two adjoining residential properties purchased by a corporation in July 1994, with the intention of demolishing both old houses and subdividing the two lots into three smaller lots for sale was a capital acquisition or a venture in the nature of trade. It was the intention that the shareholder would acquire one of the new lots for the purpose of building a residence for his occupancy.

Position:

Not capital property to the corporation as property was acquired for resale. The shareholder, would be obliged to pay his corporation fmv for a lot to be used by him to build a residence for his own occupancy. Whether the shareholder purchased an undivided interest in the property before it was subdivided and partitioned or whether he simply purchased the lot from the corporation after it was severed, would not alter the position that the shareholder acquired the lot as a capital property.

Reasons:

20 February 1997 Internal T.I. 9637077 - FISCAL PERIOD - SIMILAR SERVICES

Unedited CRA Tags
249.1 34.2
Summary Under
Tax Topics - Income Tax Act - Section 34.2 - Old 34.2

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.

		February 20, 1997
	Winnipeg Tax Services Office	HEADQUARTERS
	Client Services Division	B. Kerr
		957-8953
	Attention: Henry Zerbin
		963707

Similar Business

11 February 1997 Internal T.I. 9637287 - ALIMONY AND MAINTENANCE

Unedited CRA Tags
60(b) 60(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.

		February 11, 1997
	Winnipeg Tax Services Office	HEADQUARTERS
	Debi Ellement	M. Eisner
	Client Assistance Directorate	(613) 957-8953
		963728

Maintenance of Children

7 February 1997 Internal T.I. 9634817 - 118(1)(A)

Unedited CRA Tags
118.8

Principal Issues:

whether an individual may claim a spousal tax under 118(1)(a) for a spouse who died during the year and also transfer an unused disability tax credit from the new second spouse, in the same year, under 118.8

Position:yes

Reasons:

23 January 1997 Internal T.I. 9631877 - GARNISHEE OF PENSION BENEFITS

Unedited CRA Tags
56(1)(a) 153(1)

Principal Issues:

Would pension benefits that are garnisheed under the Family Maintenance Act and the The Pension Benefits Act of Manitoba be taxable and subject to withholding taxes?

Position:

Yes

Reasons:

19 December 1996 Internal T.I. 9634786 - INTEREST INCOME OF A STATUS INDIAN

Unedited CRA Tags
81(1)(a)

Principal Issues:

17 December 1996 Internal T.I. 9634547 - DISPOSITION OF EMPLOYMENT BONUS NOTES

Unedited CRA Tags
39
Summary Under
Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii)

Principal Issues:

Deduction for loss on disposition of notes received from employer in lieu of cash bonus.

Position:

A capital loss will result.

Reasons:

11 December 1996 Internal T.I. 9638527 - Computer Software

Unedited CRA Tags
CLASS 12

Principal Issues:

Whether the entire cost of software, acquired outright, should be treated as Class 12(o), or alternatively, whether the various components that are inherent with ownership should be broken down with the components valued separately and individually classified.

Position:

Treated as a depreciable property, rather than allocate to the component parts.

Reasons:

8 November 1996 Internal T.I. 9635527 - INTERACTION SECTION 216 & SECTION 188.94

Unedited CRA Tags
216 118.94
Summary Under
Tax Topics - Income Tax Act - Section 118.94
Summary Under
Tax Topics - Income Tax Act - Section 216 - Subsection 216(1)

Principal Issues:

Interaction of section 216 election and "all or substantially all" test in section 118.94

Position:

No interaction

Reasons:

Ministerial Letter

19 February 1997 Ministerial Letter 9634728 - ASSIGNMENT OF RIGHT TO RECEIVE ALIMONY

Unedited CRA Tags
60(b) 56(1)(b)

Principal Issues:

whether client can have an alimony or maintenance deduction for amounts paid to the province of Ontario. The ex-spouse has assigned all rights to alimony or maintenance as a condition for eligibility to collect social assistance.

Position:

No

Reasons:

7 January 1997 Ministerial Letter 9632678 - EXTENDED CAB PICK UP TRUCK AS AN AUTOMOBILE

Unedited CRA Tags
6(1)(e) 6(2)

Principal Issues:

whether an extended cab truck with rear folding, or folding jump seats behind the driver's bench seat is an automobile for the purpose of the standby charge

Position:

depends on the percentage of use of the vehicle for transporting goods, equipment or passengers in the course of earning income

Reasons:

21 November 1996 Ministerial Letter 9633318 - political party paying expenses of elected rep.

Unedited CRA Tags
6(1)(a)

Principal Issues:

can a registered political party was donated funds to pay personal expenses of elected official? Does the payment of a personal amount confer a taxable benefit on the elected official?

Position:

reasonable travel expenses of elected officials represent normal operating expenses when the amounts reasonably relate to the carrying out of the party's activities. A payment or personal benefit of any kind, from a political party to an elected official, is a taxable benefit unless the amount represents a reimbursement of an amount incurred in the performance of the memeber's official duties. In determining whether there is a taxable benefit, the same criteria is applied to politicians as to all other taxpayers.

Reasons: