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In our view, there should be no adverse income tax considerations to a financial institution but that will depend on the facts of the particular situation. ...

As a result of our consideration of this matter we have taken the following position: a) where only part of the gain is included in income all of the tax is regarded as applicable to the FAPI gain unless more than 50% of the gain is included in income in which case only the tax relative to 50% of the gain is regarded as applicable to the FAPI gain; b) where the full gain is included in income and only taxed at special rates all of the tax is regarded as applicable to the FAPI gain subject to a maximum of 50% of the top, marginal rate; and c) where the full gain is included in income and taxed at full rates only a pro-rata portion of the tax is regarded as applicable to the FAPI gain. ...

Accordingly, in the situation you have described, it is the corporation's proportionate share of the fair market value of the underlying assets of the partnership that is taken into consideration in determining if the previously mentioned requirement in the definition of “small business corporation” has been satisfied. ...

As a result of our consideration of this matter we have taken the following position: a) where only part of the gain is included in income all of the tax is regarded as applicable to the FAPI gain unless more than 50% of the gain is included in income in which case only the tax relative to 50% of the gain is regarded as applicable to the FAPI gain; b) where the full gain is included in income and only taxed at special rates all of the tax is regarded as applicable to the FAPI gain subject to a maximum of 50% of the top, marginal rate; and c) where the full gain is included in income and taxed at full rates only a pro-rata portion of the tax is regarded as applicable to the FAPI gain. ...

There may be other relevant considerations where consolidated returns are filed in other jurisdictions- particularly the United Kingdom. ...

While you have provided comments which are relevant to the determination  of "misuse" or "abuse" we do not feel such a determination can be made without full consideration of the specific circumstances. ...

In view of these limitations you have suggested that, based upon comparison with other life insurance policies, the particular policy under consideration should be considered an "exempt policy" within the spirit of the Income Tax Regulations.  ...

Such determination will involve the consideration of corporate and commercial arrangements entered into by the taxpayer, some of which may not have been considered by Revenue Canada.  ...

In a butterfly where the transferee corporation ("Newco") issues voting preferred shares to Parcorp in consideration for the property transferred from  Parcorp to Newco, the preferred shares may meet the requirements in 2(a) and (b) above, but will generally not be able to meet either (c) and (d), as the preferred shares will be taxable preferred shares. ...

Therefore, since there is a requirement in the case of a Minister to use the vehicle and chauffeur for overriding national security considerations, travel between the Minister's residence and a workplace will not give rise to a taxable benefit.  ...