Search - considered

16 June 2017 External T.I. 2016-0674541E5- Mineral Certification-- summary under Paragraph (f) Summary Under Tax Topics- Income Tax Act- Section 66.1- Subsection 66.1(6)- Canadian exploration expense- Paragraph (f) exploring a placer jade deposit did not qualify as CEE The Minister of Natural Resources advised CRA that nephrite (a type of jade) to be extracted from the in-situ deposits on the subject property was an industrial mineral contained in non-bedded deposits – but excluding placer nephrite deposits, which were considered to not qualify as “a mineral deposit in respect of which...the principal mineral extracted is an industrial mineral contained in a non-bedded deposit.” CRA itself considered that the placer nephrite deposits did not qualify as a “base or precious metal deposit.” ...

CRA stated: In general, a lump sum payment for the balance of unused sick leave accumulated over the years may be considered a retiring allowance if the payment is made on or after the employee retires from an office or employment. ... In such a case, the amount is usually considered employment income. ...

14 April 2009 External T.I. 2007-0238221E5 F- Rights of musician-Transfer-- summary under Specified Investment Business Summary Under Tax Topics- Income Tax Act- Section 125- Subsection 125(7)- Specified Investment Business royalty income generated from an active business is itself active business income As part of a general response respecting the transfer of rights by a musician to a corporation, CRA stated: Although royalty income is generally income from property, where it can be established that the royalty income is related to an active business carried on in the year by the corporation receiving the royalty, or that the recipient corporation carries on in the year a business that generates property from which the royalties are received, such income will be considered to be income from an active business. Thus, if a corporation carries on a music composition business, the income it earns from the copyright attributable to that business will generally be considered income from an active business. ...

11 March 2010 External T.I. 2009-0345481E5 F- Allocations versées administrateurs bénévoles-- summary under Office Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Office definition of a “volunteer” (who is excluded from the holder of an “office”) Before finding that allowances and travel reimbursements paid by an NPO to volunteer directors were generally non-taxable, CRA stated that although “a director is generally considered to hold office, this is not the case for a director who works for a company solely on a voluntary basis,” which references the situation where “individuals who work on a volunteer basis receive no remuneration or at most minimal remuneration for services rendered on a volunteer basis” – with remuneration considered minimal where the remuneration paid to the individual is “significantly less than that which would have been paid to an employee or self-employed person rendering similar services,” so that “it is unlikely that minimal remuneration is sufficient to secure the volunteer's services.” ...

-sourced A Canadian resident and U.S. citizen who settled a revocable living trust for him and his family, is considered for U.S. purposes to be earning the U.S. ... In particular, the income received by him would be considered to have a U.S. source on general principles, given that s. 94(3) would not deem the trust to be resident in Canada for s. 108(5) purposes. ...

Regarding whether this should be treated as the sale of a separate business (so that there would be a separate eligible capital amount calculation), CRA reiterated the indicia in IT-206R, and stated: We have also previously expressed our opinion, in situations where geographically distinct operating centres operated under the same rules and procedures, that they were considered to be a single business on the same basis as a bank operating various branches. … Hoffman v. MNR, 50 DTC 284 … found that two hardware stores operating in two cities with potentially different customer bases could not be considered separate businesses. ...

On what date will they again be considered "common-law partners"? CRA stated: [S]ince on November 1, 2004, Monsieur and Madame were cohabiting in a conjugal relationship and had a child from their union, they will be considered to be common-law partners from that date. … [B]ecause Monsieur and Madame had a child together, they will never be subject to the 12-month cohabitation period since it applies only to common-law partners without children. ...

22 March 2018 Internal T.I. 2018-0738201I7- Residency of TFSA trust-- summary under Subsection 146.2(6) Summary Under Tax Topics- Income Tax Act- Section 146.2- Subsection 146.2(6) investment trading decisions by non-resident holder did not make the TFSA trust a non-resident CRA considered that because the trust company trustee of a TFSA, RRSP, RRIF, RESP or RDSP is required under the Act “to maintain and exercise key decision-making powers and responsibilities over the trust” (e.g., ensuring compliance with ITA requirements including monitoring for non-qualified investments and ensuring that all transactions occurred at fair market value), it follows that such trusts will have their central management and control in Canada, so that they “will always be considered resident in Canada.” ...

30 April 1997 External T.I. 9529225- PROSPECTUS OR SIMILAR DOCUMENT-- summary under Paragraph 4803(2)(a) Summary Under Tax Topics- Income Tax Regulations- Regulation 4803- Subsection 4803(2)- Paragraph 4803(2)(a) should contain prospectus like disclosure Before going on to indicate that a mutual fund trust indenture and statement of portfolio transaction filed with provincial securities commission would not be considered to be a document similar to a prospectus or registration statement. CRA stated: "consequently, we are of the view that to be considered a 'similar document' for the purposes of paragraph 4803(3)(a) of the Regulations, a document should contain information similar to, and be prepared for the same purpose as, a prospectus or registration statement. ...

Any amount transferred from a foreign pension plan to an FRA is considered to be an employee contribution to the FRA and it would qualify as an eligible amount. ... " Amounts paid out of an SEP IRA or a 401(k) pension plan would be considered payments out of a pension plan for purposes of the Act. ...