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CRA’s reasons suggest that it also considered it necessary that the central management and control of the exempted corporation be in the U.S. ...

CRA stated: Where a business has income from the provision of both services and non-services (including from a sale of tangible or in some circumstances, intangible property) such as a business carried on by plumbers, mechanics or other contractors that sell replacement parts or materials, the income from the provision of non-services will generally be taken into account in determining whether shares of a corporation are excluded shares of an individual unless such income can reasonably be considered to be necessary but incidental to the provision of the services (for instance an office cleaning service if it billed separately for the cleaning supplies used). ...

This investment by Investor would have precluded s. 55(3)(a) treatment of the spin-off by virtue of s. 55(3)(a)(ii) if it had been considered to have occurred as part of the same series of transactions that included the deemed dividends arising on the spin-off cross-redemptions. ...

X was a “connected contributor” which, in turn, depended on whether all his contributions were made at a “non-resident time,” the Directorate noted that the wording of definition of the latter phrase was modified under the coming-into-force provisions respecting contributions made before June 23, 2000, and noted that (as explained in the Finance Explanatory Notes) a contribution made before June 23, 2000 will be considered to have been made by a person at a non-resident time if the person was non-resident in Canada for the period commencing 18 months before the trust year end for the year of the contribution and ending 60 months after the contribution. ...

27 June 2018 External T.I. 2018-0742881E5 F- Royalties under Canada Petroleum Resources Act-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose Canadian Petroleum royalties generally deductible Respecting whether royalties paid under the Canada Petroleum Resources Act ("CPRA") would be considered a tax on income or profit and, therefore, not be deductible in computing business income under paragraph 18(1)(a), CRA first noted that, in a month preceding the month of payout, the royalties were calculated as percentages of the gross revenue from petroleum and, thereafter, as the greater of 30% of the net revenues from petroleum, and 5% of the gross revenues from petroleum, CRA then noted that following the repeal of s. 18(1)(m), resource royalties and mining taxes have been “deductible in the computation of income, subject to the usual restrictions on the deduction of expenses for tax purposes” and then, after referencing (and misquoting) the test in s. 18(1)(a), CRA stated: [T]he amount of royalties calculated by virtue of the CPRA and its Regulations is not subject to that restriction because, inter alia, if it were not paid, a taxpayer could lose the opportunity to carry on its business and thereby earn income. ...

CRA stated: [I]t would appear that the interest earned by FA may be considered to be derived from activities that are directly related to the active business activities of Manco for the purposes of clause 95(2)(a)(i)(A)…. ...

In this context, the Minister will not be considered to have ascertained that the amount of a loss differs from an amount reported by the taxpayer where the difference fully reflects a change requested by the taxpayer as a result of amended or new information. ...

It first must be considered to be carrying on a business. Would the income generated by Realtyco from the six buildings qualify as “income of the corporation for the year from an active business” for purposes of s. 125(1)(a)? ...

5 October 2018 APFF Roundtable Q. 16, 2018-0768871C6 F- Dépenses de bureau à domicile et d’automobile-- summary under Incurring of Expense Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Incurring of Expense payment of expenses of taxpayer by another does not preclude “incurring” by taxpayer Respecting the deductibility of home office and automobile expense of an independent contractor where such taxpayer owns the property and another person (who might be a spouse) pays such expenses, CRA stated: For an expense to be considered to have been incurred for the purposes of paragraph 18(1)(a), it is not necessary that the expense be paid by the person incurring the expense. ...

13 May 2003 Internal T.I. 2003-0002167 F- TRAVAIL TEMPORAIRE-- summary under Subparagraph 6(6)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(6)- Paragraph 6(6)(a)- Subparagraph 6(6)(a)(i) test of work of a temporary nature not met where appointment as a director could be readily renewed through re-election After noting that IT-91R4 indicated that “duties will be considered to be of a temporary nature if it can reasonably be expected that they will not provide continuous employment beyond a period of two years” and that, per 2001-0103707, 2001-0101967 and 2002-0126993, “when the facts indicate that the work is truly temporary in nature, we are prepared to accept that the two-year limit is not automatically applied and that a three- or four-year contract can be work of a temporary nature,” the Directorate indicated that where appointments to a term as director could be readily renewed through being re-elected, the “temporary” requirement was not met. ...