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7 June 2005 External T.I. 2005-0121921E5 F- Paiement à un emphytéote-- summary under Timing Summary Under Tax Topics- Income Tax Act- Section 9- Timing notwithstanding Canderel, tenant inducement payment must be amortized under matching principle if incurred for specific purposes of producing identifiable future revenue Regarding a payment made by a landowner to a related corporation as an inducement to enter into a contract granting a right of emphyteusis, CRA noted that Befega, 72 DTC 6170 found that expenses incurred in connection with an emphyteusis were capital expenditures, that were not deductible in computing income because they were made not only once and for all but also to provide an enduring benefit to the business, and then reiterated its position (based on Canderel) that it is necessary to determine whether a tenant inducement payment was incurred for the specific purpose of producing an identifiable item of income so as to engage the application of the matching principle or whether it gave rise to sufficient current benefits to be treated as a current expense in the year of payment. ...

19 February 1997 External T.I. 9616305- ROYALTY PAYMENTS FOR SHOWING VIDEOS IN PUBLIC-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 In noting that royalties paid for a licence to make videos available to the patrons of a health club, who view videos on installed televisions sets while they exercise, will not be exempt from withholding tax, RC stated: "Royalties in respect of the production or reproduction of motion pictures or video tapes which are not for private (home) use, including but not limited to those used in connection with television broadcasting, are not exempt. ...

" Tennis courts, golf courses and fishing ponds are likely to qualify as property used in connection with an amusement park. ...

The lender would be considered to have an equity interest if it was entitled to participation payments computed as a percentage of profits from the production with no cap, and there was clearly no connection between the estimated participation payments and the fair market value interest rate. ...

17 July 2018 External T.I. 2018-0747311E5- Geothermal Energy Project-- summary under Class 14 Summary Under Tax Topics- Income Tax Regulations- Schedules- Schedule II- Class 14 if renegotiation, further permit fees may generate Class 14 property After noting that different licence, lease and permit fees may be imposed under the applicable provincial law in connection with a geothermal project, CRA stated: The fees paid for renewals and extensions of a licence could also be included in Class 14. ...

12 September 1994 External T.I. 9417285- RELATED EMPLOYERS FOR RETIRING ALLOWANCE TRANSFER-- summary under Paragraph 60(j.1) Summary Under Tax Topics- Income Tax Act- Section 60- Paragraph 60(j.1) Where an individual works for Employer 1 when it is related to Employer 2, Employer 2 severs its connection with Employer 1 so that it no longer is related, and the individual quits his job with Employer 1 and obtains employment with Employer 2, the eligible amount of a retiring allowance paid by Employer 2 cannot include amounts in respect of years of employment with Employer 1 because Employer 2 was not related to Employer 1 either at the time the retiring allowance was paid or at the time the employee terminated the first employment and obtained the second employment. ...

Profit- Debt/ receivables Ensite and Marconi exceptions to corporate investments of earnings being held on capital account In the course of a general discussion of the tax treatment of property held in connection with securities transactions of a corporation, CCRA stated: [I]n general, a corporation that merely reinvests its operating surplus only receives income from the holding of property. ...

25 February 2002 External T.I. 2000-0046485 F- Majoration et Immobilisation-- summary under Paragraph 251(1)(c) Summary Under Tax Topics- Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) co-operative use of s. 88(1)(d) bump by targets and purchasers could entail acting in concert Planning to equalize assets of two target corporations (Aco and Bco) in connection with their sale to two purchasers (HoldcoA and HoldcoB)- which entailed a preliminary s. 85(1) rollover of equaling property by Aco and Bco, followed by the purchase of Aco by HoldcoA, and Aco’s s. 88(1) wind-up into HoldcoA to bump the preferred shares received on such s. 85(1) rollover, followed by a sale of the bumped shares by HoldcoA to HoldcoB – was considered to likely entail all the parties acting in concert so that they could not be considered to be dealing at arm’s length. ...

The per-kilometre rate is higher than that normally used for automobiles, as it takes into account the operating expenses (including capital cost allowance and interest, if applicable) relating to the motorhome in connection with its use for business purposes. ...

CCRA indicated that (assuming that these amounts were incurred in connection with the acquisition of the plant) these components would all receive the same treatment as an addition to the cost of that asset. ...