5 January 1995 Income Tax Technical News, No. 6

The 40-kilometre distance is to be measured as the shortest normal route available to the travelling public.

Respecting the requirements in ss.131(8)(b) and 132(6)(b) that the only undertaking of the corporation or trust be the investing of its funds and property other than real property, RC stated that "buying, selling or otherwise taking a position in futures contract, forward contracts and options on futures contracts (based on, among other things a commodity, a commodity index, a foreign currency, a stock index or a bond index) are activities that will generally fall within the meaning of that phrase".

When a partnership agreement requires that certain expenses incurred by a partner must be paid for by her, RC will require (with effect for such expenses incurred after 1995) that such expenses be deducted on a basis corresponding to the fiscal period of the partnership rather than on a calendar-year basis.

Although leave to appeal the Hoefele case to the Supreme Court of Canada has been sought, Revenue Canada accepts, having regard to the Splane case (92 DTC 6021) "that where an employee incurs a higher interest rate on a mortgage as a result of an employer-requested relocation... the mortgage interest rate differential payments for the remaining term of the mortgage are not taxable".