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For the purposes of determining that there has been a pro rata distribution of each of the three-types-of property: following the allocation of current liabilities to each cash or near-cash property on a pro rata basis, any remaining net FMV of any accounts receivable (including HST/GST/QST receivables and accounts receivable owing from non-arm’s length persons), inventories and prepaid expenses of Canadian DC will be reclassified as business property and excluded from the cash or near-cash property, to the extent that such property will be collected, sold or used in the ordinary course of the business to which such property relates; amounts receivable by Canadian DC under the cash pooling arrangement will be considered cash or near-cash property and any amounts payable by it thereunder will be considered current liabilities allocable solely to cash (if the cash pool account is in a negative balance position, due to outstanding cheques or otherwise, that negative balance can be offset against any other bank account that is in a positive position); the quotas of Forco 3 owned by Canadian DC will be considered investment property; the portion of loans or advances (including the Canco 1 Loan) that is due within the next [12] months, as well as loans and advances with no fixed terms of repayment will be considered cash or near cash assets, and the balance of any such term loans (including the Canco 1 Loan) will be considered investment property; the real properties of Canadian DC, including its leasehold interests which are subject to the subleases, will be considered business property; any amount collected from customers and recorded as deferred revenue will not be considered a liability provided it does not represent a true legal liability capable of quantification; any net pension plan asset (i.e., actuarial plan assets in excess of actuarial plan liabilities) of Canadian DC will not be considered property of Canadian DC, but any net pension liability (i.e. actuarial plan liabilities in excess of actuarial plan assets for a registered pension plan will be considered a legal liability capable of quantification; any liability that is related to an unregistered retirement plan or similar post-employment arrangement (e.g., supplemental retirement or health care plan) will be disregarded where the amounts are dependent on future events; In the event that Canadian DC has cash or near-cash property (“cash”) at the time of the transfer in 5, then no later than XX days thereafter, Canadian DC will transfer cash as is required to ensure that the net FMV of the cash of Canadian DC transferred to Canadian TC will approximate the ratio of (a) the aggregate FMV of the Canadian DC Special Shares owned by Canadian TC immediately before the transfer, to (b) the aggregate FMV of all the issued and outstanding shares of Canadian DC immediately before the transfer- and such transfer will be considered to have been occurred as part of the transfer in 5. To the extent that current liabilities of Canadian DC are allocated to more than one type of property of Canadian DC (for example, as a result of the reclassification in 7(a)) and all or a portion of those liabilities are assumed by Canadian TC in 5, Canadian TC will have the option to allocate those current liabilities to any such corresponding type of property of Canadian TC, provided that the amount so allocated to a particular type of property of Canadian TC does not exceed the amount allocated to that same type of property by Canadian DC; Since the Canco 1 Loan (transferred in 5) will be considered to be both an investment, and cash and near cash asset, Canadian DC and Canadian TC will jointly agree on the portion of thereof that is of each property type of property, provided that the amount of the transferred Canco 1 Loan considered to be a particular type of property of Canadian TC does not exceed its amount that is considered to be of that type by Canadian DC; Canadian TC will redeem all of the outstanding Canadian TC Special Shares held by Canadian DC for a non-interest-bearing promissory note, payable on demand, and Canadian DC will accept the note as full payment of such redemption consideration. ...

CRA also provided general comments on the meaning of "substantial operation": The ordinary meaning of this term has been considered in Canadian domestic case law. In particular, Canadian courts considered the meaning of the term "substantial" in (SCC) Manning Timber Products Ltd. v MNR [52 DTC 1148]. ... The CRA has previously expressed its views on the factors considered in determining whether an active trade or business is "substantial" for the purposes of Article XXIX-A(3) of the Canada-United States Tax Convention. ...

Would the allowances received be considered as reasonable and, therefore, excluded from employment income under s. 6(1)(b)(vii)? ... In addition… the costs of showers are also considered to be deductible as accommodation expenses where a transport employee sleeps in the cab of the truck rather than in a hotel. … [A]n allowance for accommodation expenses calculated exclusively on the basis of distance, time or other criteria will not be considered reasonable if it does not represent an estimate of the cost of accommodation that may be incurred by the employee during the travel that generated entitlement to the allowance. … [W]here an employee sleeps in the truck cab, it is unlikely that the allowances for accommodation expenses in the three scenarios provided will be considered reasonable for the purposes of paragraph 6(1)(b). ...

Although royalty income is generally considered to be income from property, such income will be considered to be income from an active business where it can be established that the income was related to an active business carried on by the recipient taxpayer in the year, or the recipient taxpayer is, in the year, in the business of originating property from which the royalties are received. If a taxpayer is in the business of composing music, the income earned by the taxpayer respecting the copyrighted music will generally be considered to be active business income. ... If the principal purpose of a corporation’s business is to derive income from property such as interest or rental income, and the business does not employ more than five full-time employees, and none of the other exceptions apply, then the income will be considered to be an income from a specified investment business. ...

8 December 2009 TEI Roundtable Q. 4, 2009-0347701C6- Qualifying person & multiple shares-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A The correspondent noted that in Canada, if each class of shares of a public company with multiple classes must be considered separately for purposes of satisfying the de minimis or 10-percent tests in the U.S. tax regulations (treated as being applicable for Canadian purposes under para. 2(c) of the "qualifying person definition) very few Canadian corporations with multiple classes of voting shares will be considered "qualifying persons" for purposes of the LOB clause. CRA stated: …each class of shares must be considered separately for the purposes of satisfying the de minimis and the 10 percent test. ...

Would NRco be considered to have thereby disposed of taxable Canadian property? CRA stated: [P]aragraph 40(3.1)(b) deems NRco to have disposed of the interest in P only for the purpose of section 110.6…[and] NRCo would not be considered to have disposed of its interest in P for any other purpose including for the purpose of paragraph 2(3)(c) or clause 150(1)(a)(i)(D)…. However, NRco would be considered to have a taxable capital gain for the purposes of clause 150(1)(a)(i)(C) of the Act and would therefore be required to file an income tax return in Canada. ...

Before concluding that the Association likely would be considered a trade union for purposes of s. 8(1)(i)(iv), CRA stated: [A]n association need not be certified as a trade union to be considered a trade union for [such] purposes…[and] an association which negotiates collectively with an employer for improvements in the members' working conditions is generally considered to be a trade union for [such] purposes…. ...

7 August 2014 External T.I. 2014-0528841E5 F- Changement à une résidence principale-- summary under Paragraph 45(1)(c) Summary Under Tax Topics- Income Tax Act- Section 45- Subsection 45(1)- Paragraph 45(1)(c) addition of a door to an exterior wall could be considered a structural change triggering a change of use A taxpayer renovates the basement of his home by adding a separate door, permitting access from the outside, in order to establish offices there of a wholly-owned corporation. ... CRA responded: Generally… the CRA [does] not … apply the deemed dispositions rule, where the property is considered to retain its primary residence character, no capital cost allowance (CCA) was claimed … and no structural change was made to the property. … [T]here is a structural change when a taxpayer makes changes to a property to make it more suitable for rental or use in the course of carrying on a business. …[T]he expansion or addition of an opening to an exterior wall of a building could be considered a structural change. ...

23 December 2013 External T.I. 2013-0505481E5 F- Application des paragraphes 6(6) et 110.7(1)-- summary under Subsection 6(6) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(6) Treasury Board rates considered to be reasonable A taxpayer ("Mr. ... Given that the travel allowance rates established by the Treasury Board of Canada Secretariat ("TBCS") are $89.95 for the 30 first days and $67.40 for the subsequent days, will $70 be considered reasonable? ... A are used to cover the additional costs that he incurs and that these amounts do not allow him to be enriched, we would be of the view that they would be considered reasonable for the purposes of paragraph 6(6) and would be excluded from the calculation of his income. ...

7 March 2016 External T.I. 2015-0608211E5- Assignment of right to purchase-- summary under Paragraph (f) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Taxable Canadian Property- Paragraph (f) assigning right to purchase Canadian real estate is disposing of tcp Would an assignment to a trust by a non-resident person of a right to purchase a Canadian apartment unit be considered a disposition of taxable Canadian property? ... Based on this definition, the right to purchase an apartment should be considered an option for purposes of the Act. …“[A]ssignment” is a form of “transfer”, and therefore, provided all other conditions of the definition are met, the assignment of the right to purchase the apartment to a trust would be considered a disposition. ...