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Before concluding that it would “generally consider emergency government assistance, including assistance from provinces and municipalities, directly related to COVID-19 to be an extraordinary item,” but that this would include “COVID-19-related government assistance … to the extent that it replaces or is meant to replace normal or recurring government assistance,” the Directorate stated: Generally, we would expect extraordinary items to meet all three of the following characteristics: a) Not be expected to occur regularly or frequently within several years Grants or other government assistance that an entity is eligible to receive on a regular or reoccurring basis would not meet this criteria. b) Not typical of the normal activities or risks inherent in the normal operations of the entity Consideration should be given to the nature of the services or products offered by an entity and the normal environment in which it operates. c) Primarily out of the control of owners or management Consideration should be given to the extent that inflows are influenced by the decision of owners or management. ...

25 April 2013 Internal T.I. 2013-0478511I7 F- Distribution à un commanditaire-- summary under Subsection 272.1(1) Summary Under Tax Topics- Excise Tax Act- Section 272.1- Subsection 272.1(1) distinction between return on partnership investment and services rendered by partner in the course of a separate business After addressing the usual case where a capital gains distribution by a limited partnership (“SEC”) would be respected as such for ITA purposes, CRA went on to state: Alternatively, a review of the partnership agreement and all relevant facts may allow us to conclude that the distribution of the amounts by the SEC to the Limited Partner represents consideration for services rendered by the Limited Partner to the SEC. In this regard, we note the answer … from the 2003 [Annual CTF] Roundtable …: …[W]e would be prepared to allow a deduction in computing the income of a partnership for fees paid to a partner if the fees are paid in consideration for services provided to the partnership by the partner acting other than in his or her capacity as a partner (i.e., the services are not related to the ownership of the partnership interest). ...

-dollar purchase price, of which a specified portion was paid in Corporation C shares (the parent of Corporation B) as stated consideration for a specific number of Corporation A shares determined in accordance with the sale Agreement, and the balance was paid in cash. ... Thus, for the purposes of section 116, all shares disposed of must be considered, not just those disposed of for cash consideration. ...

Canco provided services for no consideration to LLC1. The Directorate concluded that Canco thereby was rendered a resident contributor to NRTrust (so that NRTrust was deemed to be a s. 94-resident trust) because s. 94(2)(f) deemed there to be a transfer of property to that trust, and it would be reasonable to view there as having been a resulting increase in the fair market value of the LLC1 shares. In the Directorate’s view, this result obtained even if s. 247(2) also applied to deem Canco to have received FMV consideration for its services. ...

3 June 1994 Internal T.I. 9405427- DEDUCTIBILITY OF INTEREST UNDER 20(1)(C)-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) Consideration of interest deductibility in a situation where a loan is used to purchase preferred shares which are exchanged for common shares of a related company three months after their acquisition. ...

24 August 1994 Internal T.I. 9420517- INTEREST DEDUCTIBILITY-- summary under Subsection 20(3) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(3) Where the assets of a proprietorship are transferred to a corporation for consideration including a note payable, interest on money borrowed by the corporation from a financial institution to repay such note will be deductible. ...

22 March 2016 Internal T.I. 2013-0506561I7- Property acquired on a return of capital-- summary under Adjusted Cost Base Summary Under Tax Topics- Income Tax Act- Section 54- Adjusted Cost Base FMV cost of contributed or distributed property CRA considered that property contributed for no consideration to a corporation by its shareholder, or received by a Canadian corporate shareholder from its wholly-owned foreign affiliate on a return of capital (or other upstream transfer), generally will have a cost to the transferee equal to the property’s fair market value. ...

11 July 1995 Internal T.I. 9505997- EXTENDED WARRANTY-- summary under Subsection 18(9) Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(9) A client, who purchases an extended warranty on an asset that will be used for business purposes, will be required to apply s. 18(9) "where the set amount may reasonably be regarded as having been incurred as consideration for services to be rendered or for insurance in respect of a period, after the end of the year". ...

12 June 2003 Internal T.I. 2003-001100-- summary under Eligible Capital Expenditure Summary Under Tax Topics- Income Tax Act- Section 14- Subsection 14(5)- Eligible Capital Expenditure As a result of selling a business the taxpayer was no longer able to fulfill its obligations under a supply contract and negotiated a termination of the contract in consideration for the payment by it of a termination fee. ...

Expense- Contract or Option Cancellation As a result of selling a business the taxpayer was no longer able to fulfill its obligations under a supply contract and negotiated a termination of the contract in consideration for the payment by it of a termination fee. ...