Income Tax Severed Letters - 1999-06-11

Miscellaneous

6 May 1999 9911706 - CONSOLIDATED STUDENT LOANS

Unedited CRA Tags
118.62

Principal Issues:

1998 9827971 - EDUCATIONAL INSTITUTION OUTSIDE CANADA

Unedited CRA Tags
118.5(1)(a)

Principal Issues:

Ruling

31 May 1999 Ruling 9907783 F - REDEVANCES, REEA VS EPD

Unedited CRA Tags
125(7)

Principales Questions:
Est-ce que le revenu de redevances d’une société est un revenu tiré d’une entreprise exploitée activement ?

Position Adoptée:
Commentaires généraux.

1999 Ruling 9826663 - STRUCTURED SETTLEMENT PAYMENTS - TRUSTS

Unedited CRA Tags
107(2) 248(5) 75(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.

XXXXXXXXXX
XXXXXXXXXX 		982666
XXXXXXXXXX 

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Re: Advance Income Tax Ruling
Structured Settlement
XXXXXXXXXX (the "Claimant")
XXXXXXXXXX

1999 Ruling 9814633 - 6801(D), BONUS ARRANGEMENT

Unedited CRA Tags
6801(d)

Principal Issues: Bonus arrangement that is subject to a phantom stock plan.

Position: O.K.

Reasons: Meets the conditions in 6801(d) of the Act.

1998 Ruling 9829593 - REORGANIZATION

Unedited CRA Tags
55(3)(b), 83(2)

Principal Issues: additional transaction: cash dividend out of CDA to be paid to individuals.

Position: acceptable as payments to individuals do not affect 55(3)(b) ruling

Reasons:

1998 Ruling 983048A - TUITION - UNIVERSITY OUTSIDE CANADA

Unedited CRA Tags
118.5(1)(a)

Principal Issues: An unlimited liability company (Canco) incorporated on XXXXXXXXXX is a wholly owned subsidiary of U.S. Holdco. U.S. Holdco is incorporated under the laws of a state in the United States and is a wholly owned subsidiary of a university (Universityco) outside Canada. Canco is currently a registered institution pursuant to the XXXXXXXXXX which authorizes Canco to teach courses in XXXXXXXXXX at the post-secondary school level. Universityco intends to apply for registration pursuant to the XXXXXXXXXX and intends to operate an educational facility in Canada through a branch. Upon completion of required courses, degrees will be granted by Universityco, the university outside Canada. Universityco has applied for ministerial consent pursuant to the XXXXXXXXXX. All tuition fees will be paid to Universityco.
1. Does Universityco qualify as an educational institution in Canada for the purposes of paragraph 118.5(1)(a) of the Act?

2. Does Universityco qualify as an “other educational institution providing courses at a post-secondary school level” for the purposes of subparagraph 118.5(1)(a)(i) of the Act?

3. Will an individual be able to deduct, for a taxation year, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to Universityco, provided that the total fees exceed $100 and provided that none of the exceptions contained in subparagraphs 118.5(1)(a)(ii.1) through (v) of the Act are applicable?

Position:

1. Yes.

2. Yes.

3. Yes.

Reasons:
1. and 2. Universityco will qualify as an educational institution in Canada for the purposes of paragraph 118.5(1)(a) of the Act if Universityco becomes a registered educational institution pursuant to the XXXXXXXXXX and as such, Universityco will be authorized to teach courses in XXXXXXXXXX at the post-secondary school level.

1998 Ruling 9819613 - SUPPLEMENTAL RETIREMENT PLAN

Unedited CRA Tags
6(11) 12(11)

Principal Issues: Whether an unfunded supplementary retirement arrangement results in current taxation.

Position: No.

Reasons: Recording of a book reserve is not considered to be a taxable event. These pension benefits are taxable when received.

1998 Ruling 9826243 - EDUCATIONAL INSTITUTION IN CANADA

Unedited CRA Tags
118.5(1)(a)

Principal Issues:

Ministerial Correspondence

25 May 1999 Ministerial Correspondence 9907524 - OFFICIALS OF DISTRICT HEALTH BOARDS

Unedited CRA Tags
81(3)

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

Dear XXXXXXXXXX:

21 May 1999 Ministerial Correspondence 9910244 - MECHANIC'S TOOLS

Unedited CRA Tags
8(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.

XXXXXXXXXX

Dear XXXXXXXXXX:

Technical Interpretation - External

10 June 1999 External T.I. 9912315 - RETIRING ALLOWANCE

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

Principal Issues:
1. Can an instalment payment under a retiring allowance be allocated to a prior year?
2. Is interest paid on an amount borrowed to finance living expenses until the retiring allowance is paid deductible?
3. Is the withholding of tax on the non-eligible amount for transfer to an RRSP required where the taxpayer has an RRSP deduction limit?

Position:
1. No;
2. No;
3. Yes, unless authority is obtained from a TSO.

Reasons:
Wording of the Act

9 June 1999 External T.I. 9820415 - MERGER OF EXEMPT INSURERS

Unedited CRA Tags
87(1) 149(1)(t)

Principal Issues:

1. Whether section 87 applies to a merger of two insurers that are partially exempt from Part I tax under paragraph 149(1)(t).
2. If section 87 is not applicable, what are the income tax implications of such a merger?

Position:

1. No.
2. We are unable to provide specific comments on the income tax implications of a non-qualifying amalgamation in a general letter of opinion as we have not yet done a detailed review of the subject.

Reasons:

8 June 1999 External T.I. 9906505 - WRITING OF PUT OPTIONS - RRSP

Unedited CRA Tags
4900(1)(e)

Principal Issues: Whether the writing of put options in an RRSP trust is subject to the rules governing qualified investments?

Position:
1. RRSP does not hold a right to acquire property;
2. Property received or provided by the RRSP may be subject to these rules.

Reasons: Wording of the Act.

7 June 1999 External T.I. 9833425 - INTEREST FREE LOAN - FREE RENT -BARTER

Unedited CRA Tags
3 9 12

Principal Issues: Whether free rent in exchange for an interest free loan is taxable in the hands of the tenant.

Position: The value of the foregone rent is taxable.

Reasons: Barter transaction

3 June 1999 External T.I. 9830655 F - AIDE FINANCIÈRE VERGLAS - ÉRABLIÈRE

Unedited CRA Tags
9(1) 12(1)x) 13(21)

Principales Questions:
Quel traitement fiscal devrait être accordé aux compensations reçues par les exploitants d’érablières suite à la tempête de verglas ?

Position Adoptée:
Compensation pour la couverture des frais fixes pour interruption complète ou partielle de l’exploitation, pour le rétablissement de la tubulure et la main-d’oeuvre : Montant inclus au revenu ou réduit la dépense
Compensation pour vétusté fonctionnelle : Montant inclus dans le produit de disposition de l’équipement, donc réduit la FNACC de la catégorie.
Compensation pour la perte d’arbres : Puisque montant versé pour compenser la perte de potentiel de revenu, montant inclus au revenu.

2 June 1999 External T.I. 9827695 F - ERABLIERE - INSTALLATION ELECTRIQUE

Unedited CRA Tags
20(1)(a) 127(9) Annexe II

Principales Questions:

- De quelle catégorie de l’Annexe II fait partie le coût des poteaux et des fils électriques que le contribuable a fait installer?

- Est-ce que les poteaux et les fils électriques constituent des biens admissibles au crédit d’impôt à l’investissement?

Position Adoptée:

2 June 1999 External T.I. 9907105 - 6801(A) RETURN TO REGULAR EMPLOYMENT

Unedited CRA Tags
6801(a)

Principal Issues: Will we consider a person to have returned to his or her "regular employment" (in the context of subparagraph 6801(a)(v) of the Regulations) if he or she is on long-term vacation leave?

Position: No.

Reasons: Even though a person may be considered employed by the employer while on vacation, the person will not be considered to have satisfied the condition in 6801(a)(i) or (v) of the Regulations of returning to regular employment if they are on long-term vacation leave.

1 June 1999 External T.I. 9903505 - TRANSFER OF PROPERTY TO A RRIF

Unedited CRA Tags
146.3

Principal Issues: Can a person transfer LSVCC shares to an RRIF

Position: Yes but we also explained some key tax issues that should be of concern.

Reasons: Writer needed clarification of some of the tax the implications of such a transfer.

1 June 1999 External T.I. 9830585 - CDA - MUTUAL FUND TRUSTS AND CORPORATIONS

Unedited CRA Tags
104(21) 131(1)(b) 89(1)

Principal Issues:
1. If taxable capital gains are designated by a mutual fund trust to a corporate beneficiary, can the non-taxable portion be added to the corporation's capital dividend account?
2. Can a private corporation, that is a shareholder of a mutual fund corporation, that receives a capital gains dividend from the corporation, include the non-taxable portion in its capital dividend account?

Position: 1. No.
2. Yes.

Reasons: See text below.

1 June 1999 External T.I. 9908005 - XXXXXXXXXX STUDENTS VS. EDUCATION TAX CREDIT

Unedited CRA Tags
118.6

Principal Issues:
XXXXXXXXXX , in light of the proposed amendments to the education credit contained in Bill C-72. Whether students taking XXXXXXXXXX courses qualify for the education tax credit.

1 June 1999 External T.I. 9911575 - BUSINESS INCOME RECEIVED BY STATUS INDIAN

Unedited CRA Tags
81(1)(a)

Principal Issues: Taxation of business income of status Indians where most of the revenue-generating activities are conducted off the reserve and the customers are located off the reserve, but the administration of the businesses is on the reserve.

Position: The income is probably taxable notwithstanding that the administrative duties are performed on the reserve. The factors connecting the business income to the reserve must be considered. Jurisprudence (Southwind) establishes the main factors as the location of the revenue-generating activities and the location of the business customers.

Reasons: Almost all of the revenue-generating activities are performed off the reserve and all of the business customers were located off the reserve. A similar position was taken on other cases.

31 May 1999 External T.I. 9907245 - T2019, ELECTION REQUIREMENTS

Unedited CRA Tags
146(1)

Principal Issues:
Do both the deceased’s legal representative and the spouse, child or grandchild have to sign the T2019 election? Is an election required to receive refund of premiums treatment if the amount is not otherwise a refund of premiums?

Position:
Yes for both.

Reasons:
The prescribed form (required by subsection 146(8.1)) requires the two parties to sign the election. If no election is made, the benefit will be taxed in the hands of the annuitant as no provision allows for alternative treatment.

31 May 1999 External T.I. 9909715 - SALARY CONTINUATION, RETIRING ALLOWANCE

Unedited CRA Tags
248(1)

Principal Issues: Will salary continuation payments after termination of employment qualify as a retiring allowance where pension benefits continue to accrue?

Position: No

Reasons: The amounts paid constitute employment income not a retiring allowance.

31 May 1999 External T.I. 9905135 - PUBLIC CO, HEAD OFFICE, QUALIFIED

Unedited CRA Tags
146(1)

Principal Issues:
Public company shares still remain a qualified investment if it moves its head office?

Position:
Yes

Reasons:
The shares continue to trade on the stock exchange.

31 May 1999 External T.I. 9908915 - POOLED FUND TRUST, MULTIPLE TRUSTEES

Unedited CRA Tags
5000(7)

Principal Issues: Will a trust with a trust company incorporated under the laws of Canada or a province having been named as trustee with certain responsibilities and an individual also named as trustee with other responsibilities qualify as a pooled fund trust?

Position: No.

Reasons: The definition of pooled fund trust in subsection 5000(7) of the Regulations clearly requires that the trustee be a trust company incorporated under the laws of Canada or a province. If there is more than one trustee because trustee responsibilities have been subdivided, both such trustees should so qualify.

31 May 1999 External T.I. 9909255 - 1999 BUDGET, RRSP/RRIF AMENDMENTS

Unedited CRA Tags
146(1)

Principal Issues: What changes have been made to the RRSP and
RRIF provisions in respect of the 1999 Department of Finance Budget?

Position: None

Reasons: The Department of Finance has not released any amendments to the RRSP or RRIF provisions in respect of the 1999 Budget.

31 May 1999 External T.I. 9906745 - FOREIGN PROPERTY - COST AMOUNT

Unedited CRA Tags
206(2)

Principal Issues: Whether a property (for purposes of foreign property rules) suspended from being traded or worthless can be adjusted to nil?

Position: Generally no.

Reasons: Cost amount:
1) For capital properties: ACB.
2) For inventory: FMV or the lesser of cost and FMV

31 May 1999 External T.I. 9909555 - HBP, LLP, FEES RE WITHDRAWAL

Unedited CRA Tags
146.01

Principal Issues: Is the amount of the withdrawal under the Home Buyers Plan or the Lifelong learning Plan before or after any costs incurred by the RRSP in making the payment under the HBP or LLP?

Position: After.

Reasons: The eligible amount received by the annuitant is restricted to a maximum and the fees paid by the RRSP in respect of its investments would not be considered received by the annuitant.

28 May 1999 External T.I. 9813195 - DEDUCTIBILITY IF TRUSTEE HAS FULL DISCRETION

Unedited CRA Tags
118.1(5)

Principal Issues:
Whether a gift to a registered charity by a testamentary trust where the trustee has full discretion as to which, if any, assets are to be distributed to a charity can qualify under subsection 118.1(5) of the Act.

27 May 1999 External T.I. 9905325 - QUALIFIED INVESTMENT - ANNUITY

Unedited CRA Tags
146(1)(c.1)(i)

Principal Issues: Whether annuity contract in p. (c.1) of the definition of qualified investment in s.s. 146(1). is a qualified investment in a RRSP trust despite the fact that an RRSP beneficiary is also beneficiary under the contract.

Position: No.

Reasons: A person other than RRSP is entitled to annuity payments.

27 May 1999 External T.I. 9910945 - T4 REPORTING OF MEMBERSHIP DUES

Unedited CRA Tags
reg 200

Principal Issues: Reporting association dues on T4

Position: No provision for reporting

Reasons: Instructions in Employers' Guide to Payroll Deductions_ Basic Information

25 May 1999 External T.I. 9910075 - VACATION LEAVE AS RETIRING ALLOWANCE

Unedited CRA Tags
248(1) 60(J.2)

Principal Issues:
Can a payment in respect of unused vacation leave entitlements be treated as a retiring allowance?

Position: No.

Reasons: IT 337R3 paragraph 5

21 May 1999 External T.I. 9909685 - CHILD SUPPORT PAYMENTS

Unedited CRA Tags
56(1)(b)

Principal Issues:
We replied to an individual 5-990063 and she wrote back attaching portions of her various court orders and requested that we give an opinion on whether she has received support payments pursuant to a valid agreement.

21 May 1999 External T.I. 9910325 F - RÉGIME ENREGISTRÉ D'ÉPARGNES RETRAITES

Unedited CRA Tags
146(5.1)

Principales Questions: Est-ce qu'un contribuable décédé peut se prévaloir d'une contribution au REER de son conjoint?.

Position Adoptée: Oui. Une contribution peut être faite, en son nom, dans l’année de son décès ou dans les 60 jours suivant la fin de l’année.

20 May 1999 External T.I. 9705415 F - FIDUCIE QUI DEVIENT NON-RESIDENTE

Unedited CRA Tags
128.1(4) 220.1 104(4)

Principales Questions:
Demande de précisions concernant la disposition réputée lors de l’émigration d’une fiducie et demande de précisions sur la disposition de bien réputée en vertu du paragraphe 104(4).

Position Adoptée:
Opinion donnée par rapport aux nouvelles propositions législatives.

19 May 1999 External T.I. 9833905 - DSLP 6801(A) - NEW T4 REFERENCES

Unedited CRA Tags
6801(a)

Principal Issues:
Whether Plan meets requirements of paragraph 6801(a) of the Regulations.

Position: No

Reasons: It should be administered or amended to include:

19 May 1999 External T.I. 9912105 - TUITION TAX CREDIT

Unedited CRA Tags
118.5

Principal Issues:
An association provides professional development correspondence courses to members and other interested individuals. One of the formats offered are “XXXXXXXXXX ”, a self study module, costing $30 for members and $50 for non-members. With a self-administered quiz, individuals can fit the estimated 8 to 10 hours into their timetable at their discretion. The association requested an opinion on the issue of “income tax receipts”.

18 May 1999 External T.I. 9831225 - RPP TRANSFERS

Unedited CRA Tags
147.3(6) REG 8502

Principal Issues:
Can an individual increase the amount that can be transferred from an RPP to another RPP and an RRSP by restructuring the transfer in either of two specific manners.

Position:
Probably not, but it is a question of fact. General information was provided on the RPP transfer rules and permissible distributions.

Reasons:
The file details a specific proposal and should be the subject of an advance ruling request. With respect to the first proposal to increase the eligible service using existing benefits, we cannot envision a plan that would provide for a decrease in an individual member’s benefits in order to fund additional service, but a request to the Registered Plans Division would be required by the RPP administrator. With respect to the second, to deem a portion of the benefit as a return of contributions, while the Act does not specifically address such a division of amounts transferred from a plan, such a transfer would probably not be available under the registration rules and would require a very unusual fact situation.

17 May 1999 External T.I. 9911565 - DISPUTE RESOLUTION AWARD - DEPT OF JUSTICE

Unedited CRA Tags
56(1)(n)

Principal Issues:
The Department of Justice has established a Dispute Resolution Award in Law Studies. Its aim is to encourage students to undertake research and writing in, and pursue greater understanding of, the dispute resolution field. The Department of Justice will provide a monetary award in each participating law school for the paper produced that best represents the pursuit of new ideas and excellence in the field of dispute resolution. Participating students must be registered in and regularly attend courses in a law programme at one of the participating law schools. The Department of Justice considers the recommendation and if approved, the student receives a monetary award. The recipient will be sponsored to attend and present the paper at a national conference. Are the monetary awards received by the students and the sponsorship of a student to attend and present his or her paper at a national conference considered income to the recipient?

Position:
Based on information provided, it appears that the monetary award is a prize that is taxable pursuant to paragraph 56(1)(n) of the Act. Whether the sponsorship of the student to attend and present his or her paper at a national conference is taxable under 56(1)(n) is a question of fact.

Reasons: See IT-75R3.

13 May 1999 External T.I. 9907405 - TUITION TAX CREDIT-DISTANCE LEARNING'

Unedited CRA Tags
118.5

Principal Issues:
Whether an individual would be entitled to the tuition tax credit for tuition fees paid to a U.K. university, in respect of a distance education postgraduate degree program of the university.

4 May 1999 External T.I. 9902965 - REG. 6205, CONVERTIBLE SHARES

Unedited CRA Tags
110.6(8) 6205

Principal Issues:

25 November 1998 External T.I. 9802305 - POST CLOSING ADJUSTMENT

Unedited CRA Tags
42

Principal Issues: whether certain post closing adjustment payments are deductible under section 42

Position: depends on the terms and conditions of the relevant agreement

Reasons: normal rules of interpretations

10 November 1998 External T.I. 9801425 - SIGNIFICANT INTEREST FOR 55(3)(A)

Unedited CRA Tags
55(3)(a)

Principal Issues:
Whether paragraph 55(3)(a) applies to a particular series of transactions

Position:
Yes

Reasons:
- Mr. Father is related to Opco and will be related to Investco by virtue of being its incorporator. Therefore, the increase in interest in Investco by Mr. Father is not an event described in 55(3)(a)(ii) or (v).

4 November 1998 External T.I. 9801695 - WHETHER A PARTNERSHIP IS A TAXPAYER

Unedited CRA Tags
84.1

Principal Issues: Is a partnership a taxpayer for the purposes of section 84.1

Position: yes

Reasons: it involves the computation of income under division B of Part 1 of the Act

Technical Interpretation - Internal

21 May 1999 Internal T.I. 9905157 F - NATURE DES DÉPENSES DE RÉNOVATIONS-XXXXXXXXXX

Unedited CRA Tags
18(1)

Principales Questions: Nature des dépenses de rénovation - XXXXXXXXXX

Position Adoptée: Essentiellement de nature capitale

30 March 1999 Internal T.I. 9904437 - CSA, SDO, SUBVENTION PAYMENTS

Unedited CRA Tags
142.2 142.3

Principal Issues:
1. Is the taxpayer a “restricted financial institution” (“RFI”) within the meaning of paragraph (e) of the definition in subsection 248(1)?
2. Is the taxpayer a “financial institution” as defined in subsection 142.2(1)?
3. Whether the income from conditional sales agreements (“CSAs”) acquired by the taxpayer constitutes income from specified debt obligations (“SDOs”)?
4. Whether the subvention payments received by the taxpayer constitute income from SDOs?
5. Whether the cost of a SDO would include allocated costs.

Position:
1. Yes.
2. Yes.
3. Yes.
4. No.
5. No.

Reasons:
1. This is a factual determination. Since the taxpayer’s principal business is to acquire CSAs which are debt obligations, it is a RFI.
2. Given that we consider the taxpayer to be a RFI, it follows that it is also a FI for SDO purposes pursuant to subparagraph (a)(i) of the FI definition in subsection 142.2(1).
3. Since the obligation under a CSA is a SDO, the income received on the CSA represents income from a SDO.
4. The subvention agreement between the manufacturer and the taxpayer and the CSA between the buyer and the taxpayer are two separate legal transactions.
5. The word “cost” is not defined in the Act. We have to look to the ordinary meaning of cost. In our view, absent a specific legislative provision to provide otherwise, the taxpayer’s cost of the SDO is limited to the purchase price paid or payable to the vendor of the SDO and would not include allocated costs incurred in the acquisition of the SDO. It is also our view that given the nature of the taxpayer’s business and the recent jurisprudence on running expenses, the allocated costs would likely constitute running expenses.

4 March 1999 Internal T.I. 9901417 - WHETHER SHARES INVENTORY?

Unedited CRA Tags
248(1) 10(1)

Principal Issues:
Whether an investment in preferred shares, losses from the disposition of which the taxpayer and the TSO have agreed to treat as an income loss, is inventory of the taxpayer. The investment is made by the taxpayer in order to help finance businesses which purchase the taxpayer’s products for resale.

Position: No.

Reasons:
It is our view that inventory is property held for resale in the ordinary course of a business.

22 February 1999 Internal T.I. 9819507 F - PAIEMENT - FERMETURE D'UNE VILLE

Unedited CRA Tags
12(1)(x) 12(2.2) 13(21) 53(2)(k)

Principales Questions:
1) Une indemnité versée suite à la fermeture d'une municipalité est-elle imposable lorsqu'elle est reçue par un locataire pour compenser les coûts de déménagement qu'il devra défrayer pour se relocaliser?
2) Une indemnité versée à un propriétaire résidentiel constitue-t-elle une disposition de cette résidence si la propriété est réinstallée à un autre endroit? Est-ce que l'indemnité vient réduire le prix de base rajusté (PBR) de la résidence?
3) Dans le cas d'une indemnité versée à un propriétaire d'un bâtiment utilisé pour gagner un revenu de bien ou d'entreprise, doit-on appliquer les dispositions de l'alinéa 12(1)x) de la Loi en conjointement avec le paragraphe 12(2.2)? Le bénéficiaire de l'indemnité peut-il plutôt réduire la fraction non amortie du coût en capital (FNACC) du montant reçu en vertu du paragraphe 13(21) de la Loi?

Position Adoptée:
1) Non. Cependant, les frais remboursés doivent venir réduire les frais de déménagement autrement déductibles en vertu de l'article 62 de la Loi.
2) Non, il n'y a pas de disposition. L'indemnité reçue n'affectera pas le coût de la résidence mais les dépenses engagées pour la déménager devront être ajoutées au coût de la résidence.
3) 12(1)x)(ii), (iv)(B) et 12(2.2) s'appliqueront s'il s'agit d'une dépense de nature courante; l'indemnité affectera la FNACC du bâtiment si la dépense engagée est de nature capitale.

15 February 1999 Internal T.I. 9831987 - DIVISION OF ASSETS - DIVORCE

Unedited CRA Tags
18(1)(a) 73(1)(b)

Principal Issues: One individual (“A”) is required to pay his former spouse (“B”) the amount of $XXXXXXXXXX (the “Payment”) as a result of a divorce. A is required to make the Payment pursuant to the relevant provincial legislation because B contributed work to the business of XXXXXXXXXX in respect of which A owns shares. The issue is the nature of the Payment.

Position: The Payment is not deductible by A or XXXXXXXXXX by virtue of paragraphs 18(1)(a) and (b) of the Income Tax Act (the “Act”) and is non-taxable in the hands of B.

17 December 1998 Internal T.I. 9826117 F - 56(1)N) - PRIX D'UNE ÉMISSION TÉLÉVISÉE

Unedited CRA Tags
56(1)n)

Principales Questions:

Les sommes reçues par un participant à l'émission télévisée «XXXXXXXXXX » sont-ils imposables à titre de récompense couronnant une oeuvre remarquable dans un domaine d’activités habituel en vertu de l’alinéa 56(1)n) de la Loi?

Position Adoptée:

28 October 1998 Internal T.I. 9818357 - OVERSEAS EMPLOYMENT TAX CREDIT

Unedited CRA Tags
122.3

Principal Issues: whether a XXXXXXXXXX operated by a non-resident employer is entitled to the OETC.

Position: Not likely

Reasons: The non-resident employer does not appear to qualify as a "specified employer". Even if the employer qualified as a "specified employer", it is a question of fact whether the criteria under subsection 122.3(1) are met in any particular case.

Ministerial Letter

27 May 1999 Ministerial Letter 9907048 - TAXABLE BENEFIT, FREE AIRFARE

Unedited CRA Tags
6(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.

XXXXXXXXXX

Dear XXXXXXXXXX:

14 May 1999 Ministerial Letter 9907028 - CLERGYMAN'S RESIDENCE DEDUCTION

Unedited CRA Tags
8(1)(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.

XXXXXXXXXX

Dear Colleague:

Thank you for your letter of February 26, 1999, regarding your constituent’s concerns that Revenue Canada proposes to tax clergy housing allowances and change the clergyman’s residence deduction.