Income Tax Severed Letters - 1998-05-15

Miscellaneous

18 March 1998 E9801628.txt - PENALTY? FILED FOR CREDITS ONLY

Unedited CRA Tags
163(1) 150 122.5

Principal Issues:

whether a return filed to obtain credits is filed under section 150 of the Act

Position:

Yes, unless filed under other provision in Part 1 which will permit credits (most or all others do not such as a Part 1 return filed 70(2), 104(23), para 128(2)(e) or ss 150(4))

Reasons:

30 November 1997 E9804101.txt - SUPPLEMENTARY TO LOSS UTIL SCHEME RULING

Unedited CRA Tags
84(1)(c.3) 84(4)

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							1-980410

Attention: XXXXXXXXXX

XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling
our file No. 3-972091 (the "Ruling")

30 November 1997 9804101 - SUPPLEMENTARY TO LOSS UTIL SCHEME RULING

Unedited CRA Tags
84(1)(c.3) 84(4)

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							1-980410

Attention: XXXXXXXXXX

XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling
our file No. 3-972091 (the "Ruling")

Ruling

31 March 1998 Ruling E9802353 - resource loss, bonus

Unedited CRA Tags
12(z.5) 67 12(1)(j) 5(1) reg 1210

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.

                                                                         	980235
XXXXXXXXXX 					                                                      	Denise Dalphy

Attention: XXXXXXXXXX

March 31, 1998

Dear Sirs:

Re: Advance Income Tax Ruling Request

31 March 1998 Ruling 9802353 - resource loss, bonus

Unedited CRA Tags
12(z.5) 67 12(1)(j) 5(1) reg 1210

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.

                                                                         	980235
XXXXXXXXXX 					                                                      	Denise Dalphy

Attention: XXXXXXXXXX

March 31, 1998

Dear Sirs:

Re: Advance Income Tax Ruling Request

Technical Interpretation - External

28 April 1998 External T.I. E9801765 - cedoe canadian overhead and development

Unedited CRA Tags
Reg 1206(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.

980176
XXXXXXXXXX Denise Dalphy
(613) 957-9231

Attention: XXXXXXXXXX

April 28, 1998

Dear Sirs:

Re: Canadian Overhead and Development Expenses (“CEDOE”)

28 April 1998 External T.I. 9801765 - cedoe canadian overhead and development

Unedited CRA Tags
Reg 1206(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.

980176
XXXXXXXXXX Denise Dalphy
(613) 957-9231

Attention: XXXXXXXXXX

April 28, 1998

Dear Sirs:

Re: Canadian Overhead and Development Expenses (“CEDOE”)

27 April 1998 External T.I. E9800145 - non-competion agreements, client lists

Unedited CRA Tags
14 39 42 12(1)(x)

Principal Issues:

Tax treatment of proceeds for sale of client lists, goodwill, and non-competition agreement

Position:

Sale of client lists and goodwill is ECE; payment for non-competition agreement to corporation is goodwill and therefore an ECE; payment for non-competition agreement to shareholder is a sale of property and therefore is a capital gain.

Reasons:

27 April 1998 External T.I. 9800145 - non-competion agreements, client lists

Unedited CRA Tags
14 39 42 12(1)(x)

Principal Issues:

Tax treatment of proceeds for sale of client lists, goodwill, and non-competition agreement

Position:

Sale of client lists and goodwill is ECE; payment for non-competition agreement to corporation is goodwill and therefore an ECE; payment for non-competition agreement to shareholder is a sale of property and therefore is a capital gain.

Reasons:

27 April 1998 External T.I. E9808645 - DEDUCTIBILITY OF MORTGAGE INTEREST.

Unedited CRA Tags
20(1)(c)

Principal Issues:

Whether interest on mortgage in respect of a prinicpal residence may be deducted where an inheritance is used to make equity investments instead of paying off the mortgage.

Position:

No.

Reasons:

27 April 1998 External T.I. 9808645 - DEDUCTIBILITY OF MORTGAGE INTEREST.

Unedited CRA Tags
20(1)(c)

Principal Issues:

Whether interest on mortgage in respect of a prinicpal residence may be deducted where an inheritance is used to make equity investments instead of paying off the mortgage.

Position:

No.

Reasons:

24 April 1998 External T.I. E9803405 - JOINT TENANCY

Unedited CRA Tags
70(5) 54(1)

Principal Issues:
Whether the transfer of title of wholly owned property to joint ownership constitutes a disposition when there is no change in beneficial ownership.

Position:
No disposition.

Reasons:
Paragraph (e) of the definition of the term “disposition” in subsection 54(1) of the Act makes it clear that a disposition will not occur as a result of any transfer of property by virtue of which there is a change in legal ownership without any change in beneficial ownership. It is not clear if in such a situation, probate fees upon the death of one of the joint owners would be eliminated.

24 April 1998 External T.I. 9803405 - JOINT TENANCY

Unedited CRA Tags
70(5) 54(1)

Principal Issues:
Whether the transfer of title of wholly owned property to joint ownership constitutes a disposition when there is no change in beneficial ownership.

Position:
No disposition.

Reasons:
Paragraph (e) of the definition of the term “disposition” in subsection 54(1) of the Act makes it clear that a disposition will not occur as a result of any transfer of property by virtue of which there is a change in legal ownership without any change in beneficial ownership. It is not clear if in such a situation, probate fees upon the death of one of the joint owners would be eliminated.

23 April 1998 External T.I. E9730645 - EMPLOYMENT INCOME IN CANADA, BRITISH PROF.

Unedited CRA Tags
2(3) 6(1)

Principal Issues:

Est-ce que le revenu d'emploi gagné au Canada par un professeur qui est un citoyen de la Grande Bretagne est imposable au Canada ?

Position:

Oui

Reasons:

23 April 1998 External T.I. 9730645 - EMPLOYMENT INCOME IN CANADA, BRITISH PROF.

Unedited CRA Tags
2(3) 6(1)

Principal Issues:

Est-ce que le revenu d'emploi gagné au Canada par un professeur qui est un citoyen de la Grande Bretagne est imposable au Canada ?

Position:

Oui

Reasons:

21 April 1998 External T.I. E9807205 - JOINT TENANCY

Unedited CRA Tags
73(1) 110.6(1)

Principal Issues:

Whether the transfer of a property into joint tenancy, is a disposition of the entire property or of some lesser share

Position:

Some lessor amount - the portion which has been transferred.

Reasons:

21 April 1998 External T.I. 9807205 - JOINT TENANCY

Unedited CRA Tags
73(1) 110.6(1)

Principal Issues:

Whether the transfer of a property into joint tenancy, is a disposition of the entire property or of some lesser share

Position:

Some lessor amount - the portion which has been transferred.

Reasons:

17 April 1998 External T.I. 9720785 - SALE - INTELLECTUAL PROPERTY - PATENT PENDING

Unedited CRA Tags
14 14(5)

Principal Issues:

Treatment of a sale of rights for intellectual property in respect of which the transferor has
applied for a patent.

Position:

The acquisition cost should be included in the capital cost of the patent. However, no CCA
can be taken until the patent is granted.

Reasons:

17 April 1998 External T.I. E9807945 - REPLACEMENT PROPERTY..

Unedited CRA Tags
44(5) 13(4)

Principal Issues: Whether Replacement Property?

Position: Department's position discussed in paragraphs 9 to 20 of IT-259R2.

Reasons: Actual fact situation related to proposed transaction.

17 April 1998 External T.I. 9807945 - REPLACEMENT PROPERTY..

Unedited CRA Tags
44(5) 13(4)

Principal Issues: Whether Replacement Property?

Position: Department's position discussed in paragraphs 9 to 20 of IT-259R2.

Reasons: Actual fact situation related to proposed transaction.

17 April 1998 External T.I. 9625665 - ECP COST ON TRANSF. TO INDIV. FROM PART'SHIP.

Unedited CRA Tags
14(3) 98(5)(d) 248(1)

Principal Issues:

Whether the cost of an eligible capital property transferred to an individual on the dissolution of a partnership, all of the interests in which were held by that individual before the dissolution, can be increased pursuant to paragraph 98(5)(d).

Position:

No.

Reasons:

17 April 1998 External T.I. E9728855 - QSBCS - SHARES HELD IN RRSP.

Unedited CRA Tags
110.6(1) 110.6(14)(1)(c)(i) 146(1)

Principal Issues:

Whether the time that an individual holds shares in his or her RRSP would be counted as part of the 24-month holding requirement in the definition of "qualified small business corporation shares."

Position:

Yes, if the RRSP trust meets the definition of "personal trust."

Reasons:

17 April 1998 External T.I. 9728855 - QSBCS - SHARES HELD IN RRSP.

Unedited CRA Tags
110.6(1) 110.6(14)(1)(c)(i) 146(1)

Principal Issues:

Whether the time that an individual holds shares in his or her RRSP would be counted as part of the 24-month holding requirement in the definition of "qualified small business corporation shares."

Position:

Yes, if the RRSP trust meets the definition of "personal trust."

Reasons:

16 April 1998 External T.I. E9805855 - PROFESSIONAL FEES - DECEASED TP.

Unedited CRA Tags
60(o)

Principal Issues:

Whether accounting and legal fees incurred by an executrix with respect to the final return of a deceased taxpayer can be deducted by the executrix or on the trust return for the estate of the deceased.

Position:

No.

Reasons:

16 April 1998 External T.I. 9805855 - PROFESSIONAL FEES - DECEASED TP.

Unedited CRA Tags
60(o)

Principal Issues:

Whether accounting and legal fees incurred by an executrix with respect to the final return of a deceased taxpayer can be deducted by the executrix or on the trust return for the estate of the deceased.

Position:

No.

Reasons:

15 April 1998 External T.I. E9803245 - PRINCIPAL RESIDENCE -PARTIAL CHANGE IN USE

Unedited CRA Tags
62

Principal Issues:

1. Whether there is a deemed disposition of property in a case where a taxpayer has partially converted a principal residence to an income-producing use (a bed and breakfast business)

Position:

Not possible to determine based on the information provided.

Reasons:

15 April 1998 External T.I. 9803245 - PRINCIPAL RESIDENCE -PARTIAL CHANGE IN USE

Unedited CRA Tags
62

Principal Issues:

1. Whether there is a deemed disposition of property in a case where a taxpayer has partially converted a principal residence to an income-producing use (a bed and breakfast business)

Position:

Not possible to determine based on the information provided.

Reasons:

8 April 1998 External T.I. E9807695 - MOBILE HOME PARK AS FORMER BUSINESS PROPERTY?

Unedited CRA Tags
44(1)(b) 248(1)

Principal Issues: Whether a mobile home park considered a "former business property"

Position: Question of fact. Ordinarily no.

Reasons: Fees for use of mobile home park pads ordinarily considered rent.

8 April 1998 External T.I. 9807695 - MOBILE HOME PARK AS FORMER BUSINESS PROPERTY?

Unedited CRA Tags
44(1)(b) 248(1)

Principal Issues: Whether a mobile home park considered a "former business property"

Position: Question of fact. Ordinarily no.

Reasons: Fees for use of mobile home park pads ordinarily considered rent.

7 April 1998 External T.I. 9721715 - LANDFILL GAS - WHETHER MUNICIPAL WASTE?

Unedited CRA Tags
Class 34

Principal Issues:

Whether for purposes of clause (d)(ii)(B) of Class 34, "landfill gas" could be considered an eligible fuel?

Position:

No.

Reasons:

7 April 1998 External T.I. E9803425 - LIFE INSURANCE COVERAGE NOT EXEMPT

Unedited CRA Tags
6(1)(f)

Principal Issues:

life insurance coverage provided together with disability benefits that are exempt under ITAR 19

Position:

life insurance benefit is taxable even if the disability benefits are exempt

Reasons:

7 April 1998 External T.I. 9803425 - LIFE INSURANCE COVERAGE NOT EXEMPT

Unedited CRA Tags
6(1)(f)

Principal Issues:

life insurance coverage provided together with disability benefits that are exempt under ITAR 19

Position:

life insurance benefit is taxable even if the disability benefits are exempt

Reasons:

1 April 1998 External T.I. E9805375 - APPLICATION OF TECHNICAL NEWS 12 - GOLF MEALS

Unedited CRA Tags
18(1)(l)

Principal Issues:

Whether change to RCT interpretation re meals at golf clubs apply to 1995 claims that were denied.

Position:

Yes, provided the prescribed time to file a Notice of objection has not elapsed.

Reasons:

1 April 1998 External T.I. 9805375 - APPLICATION OF TECHNICAL NEWS 12 - GOLF MEALS

Unedited CRA Tags
18(1)(l)

Principal Issues:

Whether change to RCT interpretation re meals at golf clubs apply to 1995 claims that were denied.

Position:

Yes, provided the prescribed time to file a Notice of objection has not elapsed.

Reasons:

20 March 1998 External T.I. F9722695 - : Société Exploitant une Petite Entreprise

Unedited CRA Tags
: 110.6(1) action admissible de petite entreprise, 110.6(15), 186(4)

Principales Questions:

Est-ce qu’un immeuble à logement résidentiel et un centre d’achat détenus par une société qui s’occupe de la location et de l’administration de ces biens sont des éléments d’actif utilisés principalement dans une entreprise que la société exploite activement principalement au Canada?

Est-ce que l’effet à recevoir par une société mère de sa filiale contrôlée à 100% est considéré comme utilisé activement dans l’exploitation d’une entreprise?

Est-ce que le poste d’encaisse d’une société est un élément d’actif utilisé principalement dans une entreprise que la société exploite activement principalement au Canada si cette société doit conserver un poste d’encaisse très élevé en raison des règles restrictives de la SCHL?

Position Adoptée:

20 March 1998 External T.I. 9722695 - : Société Exploitant une Petite Entreprise

Unedited CRA Tags
: 110.6(1) action admissible de petite entreprise, 110.6(15), 186(4)

Principales Questions:

Est-ce qu’un immeuble à logement résidentiel et un centre d’achat détenus par une société qui s’occupe de la location et de l’administration de ces biens sont des éléments d’actif utilisés principalement dans une entreprise que la société exploite activement principalement au Canada?

Est-ce que l’effet à recevoir par une société mère de sa filiale contrôlée à 100% est considéré comme utilisé activement dans l’exploitation d’une entreprise?

Est-ce que le poste d’encaisse d’une société est un élément d’actif utilisé principalement dans une entreprise que la société exploite activement principalement au Canada si cette société doit conserver un poste d’encaisse très élevé en raison des règles restrictives de la SCHL?

Position Adoptée:

18 March 1998 External T.I. F9731645 - Gel successoral

Unedited CRA Tags
85 55

Principal Issues:

Est-ce que 55(2) serait applicable au rachat d'actions privilégiées qui auraient été émises au pEre dans le cadre d'un gel successoral pour le bénéfice des enfants?

Position:

Non

Reasons:

18 March 1998 External T.I. 9731645 - Gel successoral

Unedited CRA Tags
85 55

Principal Issues:

Est-ce que 55(2) serait applicable au rachat d'actions privilégiées qui auraient été émises au pEre dans le cadre d'un gel successoral pour le bénéfice des enfants?

Position:

Non

Reasons:

16 March 1998 External T.I. 9733465 - Awards and Research Grants

Unedited CRA Tags
56(1)(n) 56(1)(o)

Principal Issues: Whether awards are taxable as fellowships or research grants?

Position: Research Grants

Reasons: The awards main purpose is to enable doctorate level students to undertake field research in developing countries.

16 March 1998 External T.I. 9604645 - ASSETS USED IN ACTIVE BUSINESS

Unedited CRA Tags
110.6(1)

Principal Issues:

Whether or not a farming property is used principally in an active business if a portion of the property in unusable.

Position:

May be considered an asset used principally in an active business.

Reasons:

16 March 1998 External T.I. 9606355 - ASSETS USED IN AN ACTIVE BUSINESS

Unedited CRA Tags
110.6(1)

Principal Issues:

Are assets used principally in active business?

Position:

The property may be considered an asset used principally in the business of farming in Canada.

Reasons:

16 March 1998 External T.I. 9638135 - Definition of "used principally"

Unedited CRA Tags
110.6(1) 70(10)

Principal Issues:

Whether or not an asset is considered to be used principally in the business of farming in Canada, when a certain portion of the property is unusable.

Position:

The property may be considered an asset used principally in the business of farming in Canada.

Reasons:

16 March 1998 External T.I. E9733465 - Awards and Research Grants

Unedited CRA Tags
56(1)(n) 56(1)(o)

Principal Issues: Whether awards are taxable as fellowships or research grants?

Position: Research Grants

Reasons: The awards main purpose is to enable doctorate level students to undertake field research in developing countries.

14 March 1998 External T.I. 9725795 - PERSONAL TAX CREDITS

Unedited CRA Tags
118(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 5-972579

Karen Power, C.A.

April 14, 1998

Dear XXXXXXXXXX:

We are writing in response to your letter of July 10, 1997, which was forwarded to us for reply by the Ottawa Taxation Centre. We apologize for the delay in responding.

13 March 1998 External T.I. 9706545 - PRODUCTION TAX CREDIT

Unedited CRA Tags
125.4 Reg.1106

Principal Issues:

Subsidiary corporation formed specifically to produce a film. Parent will acquire all the rights to commercially exploit the film at a cost equal to the net production cost of the film (i.e.net after any assistance and any tax credits in respect of the film). Would such transaction cause the subsidiary to be denied the film tax credit under 125.4?

Position:

The transaction could be considered as a disposition of the film to the parent before the film was produced or that the intention was to produce the film for the parent. In both cases, it can be argued that all the costs involved to produce the film would be the parent's. Accordingly, the subsidiary would not have any qualified labour expenditure on which the credit could be calculated.

Based on a question of fact and law, there is some uncertainty as to who would retain ownership of the film after all the distribution rights are acquired by the parent. If the parent can claim CCA, then this would avoid any claim for a tax credit.

There is also uncertainty that the film would not be an "excluded production" under Regulation 1106(1). Parent is not a "qualified corporation" for the purposes of section 125.4 and, accordingly, does not qualify as a "prescribed taxable Canadian corporation" under (a)(ii) of the definition of "excluded production".

Reasons:

10 March 1998 External T.I. E9727015 - INDIAN ACT EXEMPTION - GUIDELINE 4

Unedited CRA Tags
81(1)(A)

Principal Issues:

Follow-up to our letters in files 7-964086 & 5-970419. In light of additional information submitted, is the employment income of a particular Indian employee of XXXXXXXXXX exempt from taxation by virtue of Guideline 4?

Position:

It appears that all of the requirements of Guideline 4 have been met. But we still are not able to make a conclusive decision.

Reasons:

10 March 1998 External T.I. 9727015 - INDIAN ACT EXEMPTION - GUIDELINE 4

Unedited CRA Tags
81(1)(A)

Principal Issues:

Follow-up to our letters in files 7-964086 & 5-970419. In light of additional information submitted, is the employment income of a particular Indian employee of XXXXXXXXXX exempt from taxation by virtue of Guideline 4?

Position:

It appears that all of the requirements of Guideline 4 have been met. But we still are not able to make a conclusive decision.

Reasons:

2 March 1998 External T.I. 9728245 - Degel

Unedited CRA Tags
85 86

Principal Issues:

Est-ce qu'il y a un avantage lors du regel d'actions privilégiées de gel dont la JVM a diminuée?

Position:

Non

Reasons:

2 March 1998 External T.I. F9728245 - Degel

Unedited CRA Tags
85 86

Principal Issues:

Est-ce qu'il y a un avantage lors du regel d'actions privilégiées de gel dont la JVM a diminuée?

Position:

Non

Reasons:

Conference

14 April 1998 Roundtable, E9805556 - decontracting payments, resource ALLOWANCE

Unedited CRA Tags
20(1)(v.1) Reg 1210

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.
April 14, 1998
Mr. R.C. Neville Resource Industries
Co-ordinator, Resource Industries Section
Industry Specialist Services Denise Dalphy
(613) 957-9231
Attention: B.A. Chisholm
980555

Decontracting Payments

Technical Interpretation - Internal

27 April 1998 Internal T.I. 9725406 - rental loss when held as adv nat trade

Unedited CRA Tags
9

Principal Issues:

carrying costs in excess of rental income on property held primarily for resale, either as an adventure in the nature of trade or as a capital asset

Position:

carrying costs in excess of rental income not deductible unless there is a reasonable exp of profit from the rental operation - if no reasonable expectation of profit and on an adventure in the nature of trade, the excess carrying costs are capitalized or, if held as a capital asset, the excess is only capitalized to the extent permitted by s 53

Reasons:

27 April 1998 Internal T.I. 9805107 - capital gain inclusion rate for commodities

Unedited CRA Tags
38

Principal Issues: capital gain inclusion rate for commodities in 1997

Position: 75% if capital treatment applies

Reasons: although it-346r has not been updated to reflect the legislative change in 1988, it is 75% of the capital gain that must be included in income when the disposition is reported as a capital gain

27 April 1998 Internal T.I. E9805107 - capital gain inclusion rate for commodities

Unedited CRA Tags
38

Principal Issues: capital gain inclusion rate for commodities in 1997

Position: 75% if capital treatment applies

Reasons: although it-346r has not been updated to reflect the legislative change in 1988, it is 75% of the capital gain that must be included in income when the disposition is reported as a capital gain

14 April 1998 Internal T.I. 9805556 - decontracting payments, resource ALLOWANCE

Unedited CRA Tags
20(1)(v.1) Reg 1210

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.
April 14, 1998
Mr. R.C. Neville Resource Industries
Co-ordinator, Resource Industries Section
Industry Specialist Services Denise Dalphy
(613) 957-9231
Attention: B.A. Chisholm
980555

Decontracting Payments

27 March 1998 Internal T.I. 9805567 - QUALIFYING EDUCATIONAL PROGRAM

Unedited CRA Tags
118.6

Principal Issues:

Whether regular EI benefits disqualify students for the education tax credit.

Position:

No.

Reasons:

27 March 1998 Internal T.I. E9805567 - QUALIFYING EDUCATIONAL PROGRAM

Unedited CRA Tags
118.6

Principal Issues:

Whether regular EI benefits disqualify students for the education tax credit.

Position:

No.

Reasons:

25 March 1998 Internal T.I. 9726477 - TRANSFER OF FISHING LICENSE TO CORP

Unedited CRA Tags
110.6 127(9)

Principal Issues:

tax consequences arising from a purported transfer of a fishing license to a corporation

Position:

the right to fish is not transferable to corp (& if even if it were, the value of that right would be negligible) and any income earned pursuant to a fishing license is that of the license holder

Reasons:

25 March 1998 Internal T.I. E9726477 - TRANSFER OF FISHING LICENSE TO CORP

Unedited CRA Tags
110.6 127(9)

Principal Issues:

tax consequences arising from a purported transfer of a fishing license to a corporation

Position:

the right to fish is not transferable to corp (& if even if it were, the value of that right would be negligible) and any income earned pursuant to a fishing license is that of the license holder

Reasons:

13 March 1998 Internal T.I. 9802327 - MINOR HOCKEY ASSOC., NPO

Unedited CRA Tags
149(1)(l) 149(5)

Principal Issues:

Whether minor hockey association subject to subsection 149(5) of the Act.

Position:

Subsection 149(5) of the Act applies.

Reasons:

13 March 1998 Internal T.I. E9802327 - MINOR HOCKEY ASSOC., NPO

Unedited CRA Tags
149(1)(l) 149(5)

Principal Issues:

Whether minor hockey association subject to subsection 149(5) of the Act.

Position:

Subsection 149(5) of the Act applies.

Reasons:

4 November 1997 Internal T.I. 9725827 - DEPRECIABLE PROPERTY AND RESOURCE EXPENSES

Unedited CRA Tags
66.1(6) 66.2(5) 1102(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.

                                       		November 4, 1997
	Quebec Tax Services Office	    Resource Industries
	Richard Cloutier	              Section
	Forestry and Mining Specialist	    Peter Lee
		                                  957-8977

972582

Ministerial Letter

18 March 1998 Ministerial Letter 9801628 - PENALTY? FILED FOR CREDITS ONLY

Unedited CRA Tags
163(1) 150 122.5

Principal Issues:

whether a return filed to obtain credits is filed under section 150 of the Act

Position:

Yes, unless filed under other provision in Part 1 which will permit credits (most or all others do not such as a Part 1 return filed 70(2), 104(23), para 128(2)(e) or ss 150(4))

Reasons: