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CRA's Response We cannot answer to your first question since it is a question of fact that has to be resolved in the light of statements or representations made in connection with the property and the documentation concerning the arrangements. ...

In addition, it is to be noted that paragraph 120.4(1.1)(d) specifies that, for greater certainty, the expression “derived directly or indirectly from a business” is meant to include, under subparagraph (i), an amount that arises in connection with the ownership or disposition of an interest in the person or partnership carrying on the business, and, under subparagraph (ii), an amount derived from an amount described in subparagraph (i). ...

Reasons: (a) The "minimum amount" as defined in subsection 146.3(1) is calculated as the total fair market value of all properties held in connection with the RRIF at the beginning of the year multiplied by the prescribed factor corresponding to the age of the annuitant or where the annuitant so elected, the annuitant spouse or common-law partner. ...

These amounts must be paid as: Base rent, Regular instalments of operating expenses that are customarily charged to the tenant under a net lease, Property taxes and similar taxes, including school and municipal taxes, and Regular instalments of other amounts payable to the landlord for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of such properties. ...

When a question was asked to the CRA, in connection with Income Tax Technical News No 22 (January 11, 2002), concerning the existence of an avoidance transaction when a taxpayer can demonstrate that the transactions have a legitimate business purpose, the following response was given: "The decision in OSFC maintained our position that in order not to be an "avoidance transaction" in subsection 245(3), each step in a series of transactions must be carried out primarily for bona fide non-tax purposes. ...

The postponement or cancellation of a project does not alter the nature of an expense incurred in connection with such project. ...

., for the majority, made the following comments in Friesen, which appear to us to be useful in this connection: First, I do not accept the argument that s. 10(1) applies only to those who "carry on a business". ... This means that existing concerns about the possibility of improper tax planning in connection with debt investment compared to equity investment are that much greater in the context of RRSPs and RRIFs. 4.4.3. ... Comments by Department of Revenue Determining whether an amount received by a trust governed by an RRSP in connection with a share can reasonably be considered in respect of full or partial payment for services provided by the issuer of the share or the person related to the issuer, is a question of fact. ...

However, paragraph 95(3)(b) excludes from the definition of “services” for the purposes of paragraph 95(2)(b), services performed in connection with the purchase or sale of goods. ... FOREIGN AFFILIATES- SERVICES PERFORMED IN CONNECTION WITH THE PURCHASE OR SALE OF GOODS Whether or not a service performed by a foreign affiliate of a taxpayer resident in Canada for the taxpayer or a person related to the taxpayer falls within paragraph 95(3)(b) is a question of fact. ... Therefore services provided by a foreign affiliate to a taxpayer in connection with either a guarantee or a warrantee associated with a product sold by the taxpayer would not qualify for the exclusion under paragraph 95(3)(b) as having been performed in connection with the sale of goods. ...

In this regard, our view is that if the distance travelled by the automobile is primarily in connection with the partnership's business activities, it would be travelled primarily in the course of Manco's business activities. ...

CRA Response to Question 14.1 During the 1981 Revenue Canada Round Table of the Canadian Tax Foundation, the CRA indicated that it would not challenge the reasonableness of salaries and bonuses paid to principal shareholders-managers of a corporation when: the general practice of the corporation is to distribute the profits of the corporation in the form of bonuses or additional salaries; the corporation has adopted a policy of declaring bonuses to the shareholders to remunerate them for the profits the corporation has earned that are, in fact, attributable to the special know-how, connections, or entrepreneurial skills of the shareholders. ...