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CRA stated: As indicated in … IT-213R, the amount or value of a prize received by a taxpayer from a lottery scheme is not taxable as either a capital gain or income unless … the prize can be considered, inter alia, to be income from employment. … CRA went on to find that “since only employees could participate in the draw … the employee who wins the item should include in the employee’s income the proportion of the value of the item that was paid for by a contribution made by the employer to the social club fund.” ...

The Directorate indicated that a portion of each lease payment could be considered a payment for the right to purchase the property in the future, and that such portion of each lease payment added to the adjusted cost base of the bargain purchase option for the automobile. ...

After noting that the loan was assistance for the purposes of s. 12(1)(x) and the definition thereof in s. 125.4(1), and reduced Prod Co's "labour expenditure" s. 125.4(3), the Directorate considered whether there would be such assistance if M Co instead invested the sum in shares of Prod Co, and stated: [I]f, in order to partially finance a production, Prod Co issues shares of a class of its capital stock to its parent company M Co, the latter acquires … rights in Prod Co through the shares issued to it for the purposes of subparagraph 12(1)(x)(viii) … [and] the acquisition of those shares does not constitute an amount of assistance to Prod Co for the purposes of section 125.4. ...

After noting that the loan was assistance for the purposes of s. 12(1)(x) and the definition thereof in s. 125.4(1), and reduced Prod Co's "labour expenditure" as defined in s. 125.4(3) (and after also finding that the funding would not have been “assistance” under s. 125.4(1) if made in the form of a share subscription), the Directorate considered whether there would be such assistance if M Co converted its loan into shares at the end of the production, and stated: Subject to the possible application of paragraph 80(2)(g.1), there will be a debt settlement if the FMV of the shares is less than the amount of the loan. ...

., a distributor) could be considered to have acquired all beneficial ownership rights in the copyright in a production, if the production company grants to that third party all of the revenues from the distribution or the right to distribute or otherwise exploit the film in markets representing most or all of the exploitable value of the film. ...

Thus, a partner receiving undivided interests in shares held by a partnership in accordance with subsection 98(3) could be considered to hold shares of the corporation for the purpose of determining whether the recipient is entitled to the capital gains deduction …. … [T]he shareholder has held the undivided interests in the shares for more than 24 months and will continue to hold them until their disposition. ...

30 September 2005 External T.I. 2004-0093661E5 F- Revenu d'une fiducie et droit acquis par un mineur-- summary under Subsection 104(24) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(24) written trustee resolution may be necessary to establish that an amount of income has become payable How can the trustee designate or report an amount so that it is considered to be payable to a beneficiary? ...

Finally, a logging truck as described in paragraph 4600(2)(f) … could be considered to have been acquired for use in logging … if it were acquired by a subcontractor with the intention of using it for log hauling services to sawmills, pulp mills or other processing sites on behalf of a number of wood producers who are either farmers who own woodlots or simply other persons who own woodlots for whom income from the sale of wood is not the primary source of income. ...

CRA after noting its position in 2008-0292061E5 that s. 75(2) could apply “where the terms and conditions of a trust expressly require the contributor’s consent to any decision made by the trustees as a whole,” but this situation is not considered to apply “where the terms of the trust require the decisions of the trustees to be unanimous,” CRA stated: [W]here the terms of a trust indenture require unanimous trustee decision making and are otherwise silent regarding the decision making power of the settlor/trustee, this fact alone does not lead to a presumption that subsection 75(2) will not apply. … Before finding that each of ss. 75(2)(a)(i) and (ii) and (b) applied, CRA stated: Given the settlor’s power to amend the trust and to remove any trustee, in our opinion the settlor is empowered in this case to unilaterally amend any provision of the trust indenture at their sole discretion. ...

CRA considered such a circular calculation to be contrary to the scheme of s. 55(2), that for a dividend to be subject to s. 55(2), based on a Part IV tax refund, such refund must be a real refund of real tax (as per Ottawa Air Cargo) and that the right approach is for Holdco to declare $153,333 of Part IV tax in its initial return and, in a second return, show the Part IV tax paid for the taxation year as unchanged, even though the amount of the dividend received has been reduced by the application of s. 55(2). ...