Search - considered

28 June 2001 External T.I. 2001-0073205- SUBSTANTIAL ISSUER BID-- summary under Shares Summary Under Tax Topics- General Concepts- Fair Market Value- Shares Where a corporation proceeds with a substantial issuer bid at a price that is at a premium over the previous trading price of its shares on a stock exchange, the shares will not necessarily be considered to be purchased for a price in excess of their fair market value for purposes of the definitions of taxable preferred shares and short-term preferred shares. ...

30 July 2001 External T.I. 2001-0091465- Shares Exchange Arrangement-- summary under Paragraph 256(7)(e) Summary Under Tax Topics- Income Tax Act- Section 256- Subsection 256(7)- Paragraph 256(7)(e) Common shares of a CBCA corporation ("Canco") held by dissenting shareholders will no longer be considered to be outstanding shares of Canco. ...

The Directorate noted that previous interpretations had found that “learning a second language such as English was generally considered to be an activity that allowed for the development of a lifeskill and did not necessarily allow for the acquisition or improvement of a skill necessary to the exercise of an occupation.” ...

9 October 2001 External T.I. 2000-0034915- REIMBURSEMENT OF STOCK OPTION BENEFIT-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) reimbursement by sub on stock option exercise Where a subsidiary reimburses its parent for the difference between the fair market value of shares of the parent company on the date of exercise of options on the shares of the parent previously granted to employees of the subsidiary, and the amount paid to the parent company by the employees who acquire the shares, there will be no inclusion in the income of the parent under ss.15(1), 12(1)(x) or 90 for the amount of the payment, provided that the payment is in respect of options granted after the arrangement was in place, or was in respect of the increase in the stock option benefit that, in the circumstances, may reasonably be considered to have arisen after the arrangement went into effect on options that were granted prior to the arrangement. ...

. … Consequently, the payment date is considered to be the date on which the cheque is honoured or discharged by the bank, which normally occurs … on the date on which the cheque in question is debited from the debtor's account. ...

17 August 2001 External T.I. 2001-0095645 F- PRET HYPOTHECAIRE INTERETS-- summary under Subparagraph 20(1)(c)(i) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c)- Subparagraph 20(1)(c)(i) administratively splitting a mortgage loan into 2 components does not allow the principal repayments to be allocated first to repayment of the loan’s ineligible portion Regarding the deductibility of interest on a mortgage loan that is administratively split in two to allow the taxpayer to repay more quickly the portion of the principal used for personal purposes, CCRA stated: [T]he simple fact of splitting a mortgage loan in two for administrative purposes does not allow partial repayments of the principal to be considered as first reducing the portion of the principal used for ineligible purposes. ...

CCRA responded: [A] designation filed by a corporation pursuant to paragraph 88(1)(d) in its return of income under Part I of the Act for its taxation year in which its subsidiary was wound-up, in a situation similar to the one … described, could not be considered invalid solely because the amount designated by the parent corporation was overstated. ...

29 October 2001 External T.I. 2001-0075565 F- FRAIS DE SEJOUR ET ALLOCATIONS POUR REPAS-- summary under Paragraph 6(6)(a) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(6)- Paragraph 6(6)(a) meaning of “temporary nature” and distance test In the course of a general discussion of a scenario in which, because of the remoteness of certain customers, the employer would pay $30.00 per day worked in situations where employees could not return home within 36 hours, CCRA indicated that: The phrase "the duties performed by the taxpayer were of a temporary nature” was considered to refer to the duration of the work performed by the employee in question and not to the expected duration of the project undertaken by the employer. ...

However, there was no liability under s. 116(5) to the Canadian corporation that had issued the options as it should not be considered to have acquired the options from the employee and, therefore, had no cost therefor. ...

7 December 2001 Internal T.I. 2001-0108597 F- Crédit d'impôt emploi étranger Art. 122.3-- summary under Business Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Business there is a business if profit generated even if the activity was not undertaken primarily for the purpose of earning a profit After referring to Timmins, the Directorate stated: It appears from this decision that, to the extent that the activities carried on outside Canada by the specified employer are likely to generate a profit, the employer will be considered, for the purposes of subparagraph 122.3(1)(b)(i), to have carried on business outside Canada in respect of those activities, regardless of whether those activities correspond to activities ordinarily carried on by the employer and regardless of whether they were undertaken primarily for the purpose of earning a profit. ...