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6 March 2015 Internal T.I. 2014-0549761I7- Internally generated goodwill & excluded property-- summary under Excluded Property Summary Under Tax Topics- Income Tax Act- Section 95- Subsection 95(1)- Excluded Property unpurchased goodwill is taken into account Is internally generated goodwill considered in determining whether shares of a foreign affiliate ("FA2") of a corporation resident in Canada qualify as "excluded property" of another foreign affiliate ("FA1") of the corporation? ...

No benefit will be considered to have been conferred by the Company on Parent or Direct Shareholder under s. 15(1) or 246(1) and no inclusion in Direct Shareholder's income under s. 56(2) of the Act, by reason of the reimbursements: (i) in respect of RSUs that were awarded prior to XX and that were not vested at the Effective Time, to the extent of the increase in the value of the RSUs after XX; and (ii) in respect of RSUs awarded on or after XX, all of the RSU value. ...

However, paragraph 6 of Article VII of the Treaty states that if an element of the business profits is dealt with separately in other provisions of the Treaty, then those provisions are to be considered. ...

. … Periods of absence from the workplaces abroad, in order to be included in the qualifying period, will generally have to be related to the contract with respect to the activities that are qualifying or consequential to the latter and the contract must be of a duration of more than six consecutive months in order for the employer to be considered to have carried on a business outside Canada for the purpose of the application of the OETC. ...

…The payments by the Tenant for the utilities… would not be considered payments for the use of the Real Property but rather payments for the use of the services provided by the utility company…[and] would not be subject to withholding…. ...

" Opinion that: [A]n election made by GPco under subsections 21(1) and (3)...in respect of the depreciable property held by MLP would be considered a valid election provided that GPco had authority to act for the MLP and the election was made or executed on behalf of GPco and each other person who was a member of MLP during the fiscal period. ...

Thus, when that place is situated outside Canada, that person will not generally be considered as being an employee in Canada, and on that basis no source deductions are required to be made. ...

In such a situation, we are of the view that only the part of the income distributed to a specified individual that it is reasonable to consider as income described by clause (c)(ii)(C)of the definition of "split income" in subsection 120.4 would be considered as "split income" for the purposes of subsection 120.4(1). ...

" After stating that "Parliament's specific requirement that an amount become owing after March 28, 2012, as set out in paragraph 15(2.11)(b), in order for the amount to qualify for PLOI treatment must be respected," CRA responded: [I]f a pre-March 28, 2012, debt is replaced with a newer debt of the same or substantially similar amount, the transactions may constitute a series of loans or other transactions as discussed in ¶ 28 of IT-119R4 … However, as discussed in ¶ 29 of IT-119R4... all of the relevant factors would need to be considered to determine whether a series of loans or other transactions and repayments existed and bona fide repayments would not be seen as part of a series of loans or other transactions and repayments. ...

Ruling that the related licence fee paid by Canco to Forco will be exempt under s. 212(1)(d)(vi), as "payment for distribution rights in this case are considered copyright royalties as the right to distribute is viewed as a component of the right to reproduce the software or is ancillary to such a right. ...