Search - considered

Before ruling that GAAR would apply respecting transactions intended to avoid the application of the debt forgiveness rules to the non-capital losses of LossCo, rulings were provided that: the operation by AmalCo of the retained branches and the branches to be sold will constitute the carrying on by it of the LossCo business for purposes of s. 111(5)(a)(i); and that the income of AmalCo from the services referred to above "will be considered to be derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services" to the services previously rendered by LossCo. ...

After giving favourable s. 111(5)(a) rulings, CRA ruled that s. 245(2) will apply on the basis "that the repayment of the subordinated debt...will be considered a settlement of the subordinated debt for no consideration for the purposes of applying section 80. ...

We are also of the view that the conversion provided for in Q.B.C.A. section 91 should not be considered as being made "in the course of a reorganization of the capital of a corporation". ...

The sum received by Amalco was considered to be a capital receipt (and, therefore, as proceeds of disposition of the Advisory Agreement) given that the terminated contract had given rise to substantially all (in the case of XCo) or a substantial portion (in the case of YCo) of the revenues that, prior to termination, had been earned by the two advisors. ...

Rulings that Forco1 will be considered a corporation and that the ownership interests in it will be shares. ...

Consequently, and despite the Tremblay decision, the CRA intends to continue to challenge surplus stripping situations that are considered abusive, including those in the form of "tuck under" transactions, in particular by reviewing the potential application of subsections 84(2) and 245(2) in particular situations. ...

The benefit to a shareholder-employee is generally considered to be derived in his or her capacity as shareholder and is taxable as a shareholder's benefit under subsection 15(1) if: (a) the shareholder-employee controls the corporation or is one of a related group that controls the corporation or any affiliated corporation, and (b) there is extensive use of the aircraft for personal purposes by the shareholder-employee or, because of the latter's position, by relatives or friends of the shareholder-employee. ...

Although the option may be TCP it is not considered a "share". ...

CRA stated: In summary, a non-resident who presents a web site to its Canadian customers may be considered to carry on business in Canada through a [permanent establishment] where all of the following conditions are met: the host server is located in Canada, the business is being carried on, wholly or in part, through the operation of the web site on that server, the host server is at the non-resident's disposal, the host server is more or less permanently linked to a geographical location in Canada, and the web site is hosted by the particular computer server on more than merely a temporary or tentative basis. ...

For instance, an e-mail address or an IP address obtained by a supplier that does not represent an actual specific physical address is not considered to be an address for purposes of the rule. ...