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However, if there is a requirement for any further negotiations with, or the concurrence or consent of, the grantor of the licence, the new period would not be considered to be an automatic renewal but rather it could be a separate property eligible for inclusion in Class 14. ...

RC also noted that "a housing loan amortized over 25 years, and renewable every five years, at a prescribed rate of interest would be considered to be consistent with normal commercial practice.... ...

CRA considered that “the exception in 74.5(2) of the Act would cease to be applicable,” so that the attribution rules would commence applying, given that “the proceeds of the [second] loan are used to repay the demand promissory note (i.e., the proceeds would never generate any income or result in a gain),” ...

28 July 1994 External T.I. 9416395- DENIED LOSS ADDED TO ACB-- summary under Subsection 85(4) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(4) With respect to whether ss.85(4)(a) and 53(1)(f.1) would apply to the transfer by a corporation and its subsidiary of their respective undivided interest in a property to another corporation where both the transferor corporations and the transferee corporation were owned by several unrelated entities with no single shareholder holding an interest greater than 40% and each shareholder owning the same interest in both the transferor group of corporations and the transferee corporation, RC stated that: "Two or more persons will be considered to be a group which controls a corporation where there is evidence they have a common link or interest or that they act together to control the corporation. ...

Will such exchange be considered a disposition? CRA stated: Subject to subsection 51(4) of the Act, section 51 will apply to any situation where a share of the capital stock of a corporation is acquired by a taxpayer in exchange for a capital property that is another share of the particular corporation and no other consideration is received for the old shares. ...

20 December 1994 External T.I. 9421435- ROYALTIES AND CANADA-UK INCOME TAX CONVENTION-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 With respect to a situation where a Canadian company pays royalties to a resident of the U.K. for the right to reproduce certain movies, television series and children's programs in video format with the resulting videos being sold to distributors who would, in turn, rent or sell the videos to the public for private use, RC stated "that if the payments are computed on the basis of the number of times a video movie is shown and/or viewed rather than on the number of copies of the video produced, the payments would not fall within the exemption in paragraph 3 of Article 12 as they would not be considered to be in respect of the production or reproduction of the work". ...

10 June 1996 External T.I. 9611135- LOSS OF SOURCE INTEREST DEDUCTIBILITY-- summary under Subsection 20.1(1) Summary Under Tax Topics- Income Tax Act- Section 20.1- Subsection 20.1(1) Where a partnership is dissolved and the partners receive real property from the partnership in satisfaction of their partnership interests, and the adjusted cost base of the partnership interests at the date of dissolution of the partnership and the fair market value of the property received in satisfaction of the partnership interests is less than the original cost of the partnership interests, the decrease in the adjusted cost base of the partnership interests would not be considered to be lost because of a decline in value of property for purposes of s. 20.1 if such decrease is attributable to drawdowns by the partners of capital from the partnership, given that the borrowed money used initially to acquire the partnership interests thus would be traceable to an ineligible use. ...

6 January 1997 External T.I. 9640845- TRUST AND ARM'S LENGTH DEALINGS-- summary under Paragraph 251(1)(c) Summary Under Tax Topics- Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) 2 trusts not necessarily NAL if they share a common trust company as trustee In response to a query as to whether two trusts are considered to be dealing at arm's length notwithstanding that they have the same public company as trustee. ...

RC considered that this interpretation would result in the term "immediately after the disposition" be equivalent to "at the end of the series of transactions or events". ...

"Although the shareholders could not have formed the intention to file the capital gains election at the time the decision was made to enter into a reorganization, nevertheless, if they had formed the intention to dispose of their shares at that time, the reorganization and the filing of the capital gains election could be considered to form part of the same series of transactions and events. ...