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We also assume that the consideration given by B Ltd consists of preferred shares redeemable at the shareholder's option with a redemption price equal to the fair market value of the property transferred and a paid-up capital equal to the cost amount of the property. ...

We concur with your interpretation and will bring this matter to the attention of our Current Amendments Division for their consideration. ...

We offer the following comments for your consideration: I. Directive 1. ...

It would appear to us that subparagraph 212(1)(d)(i) of the Act is applicable in respect of the XXX Article XII of the Canada-Italy Income Tax Convention (the Convention) defines "royalties" as payments of any kind received as consideration for the use of, or the right to use, any copyright..., patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience (emphasis added). ...

It also states that a payment made after December 20, 1991 that is otherwise a periodic pension payment would not be a periodic payment and thus subject to the full 25% Part XIII tax where, subject to certain exceptions, the total of all payments made under the RRIF at or before that time of the payment and in the year exceeds the greater of (a) twice the amount that would be the minimum amount under the fund for the year, and (b) 10% of the amount that would be the fair market value of the property held in connection with the fund at the beginning of the year if all property transferred in the year and before that time to the carrier of a fund as consideration under the fund had been transferred immediately before the beginning of the year and the definition of “minimum amount” in paragraph 146.3(1)(b.1) of the Income Tax Act were applicable with respect to all RRIF's. ...

REASONS: Consideration of the connecting factors in the case. Although an office is maintained on reserve, all of the revenue of the business is received from work performed off reserve. 960213 XXXXXXXXXX J.D. ...

We are of the opinion that subsection 15(1) of the Act would be applicable in a situation where, in consideration of the transfer of a property to a corporation in respect of which an election under subsection 85(1) of the Act is made, a shareholder receives properties (including rights of any kind whatever) the fair market value of which in the aggregate exceed the fair market value of the property transferred to the corporation. ...

It is clear in the response that the Department can assess taxpayers without taking into consideration the provisions of section 22 if form T2022 is not filed with their tax return for the year of sale. ...

It also states that a payment made after December 20, 1991 that is otherwise a periodic payment would not be a periodic payment and thus subject to the full 25% Part XIII tax where, subject to certain exceptions, the total of all payments made under the RRIF at or before that time of the payment and in the year exceeds the greater of (a) twice the amount that would be the minimum amount under the fund for the year, and (b) 10% of the amount that would be the fair market value of the property held in connection with the fund at the beginning of the year if all property transferred in the year and before that time to the carrier of a fund as consideration under the fund had been transferred before the beginning of the year and the definition of “minimum amount” in paragraph 146.3(1)(b.1) of the Income Tax Act were applicable with respect to all RRIFs. ...

To determine if in a particular situations such relief is available, a taxpayer would have to submit full details to his local District Taxation Office for consideration. ...