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The Supreme Court of Canada in the Ensite case (86 DTC 6521) considered the issue of whether property was used or held in the course of carrying on business and held that the proper test is whether the property is employed and risked in the business. ... In the Department's view, cash and near cash assets held to offset the non-current portion of long term liabilities will not generally be considered to be used in the business. ... In our view, the employment of marketable securities merely as collateral is not generally sufficient to enable it to be considered to be used in a business. ...

As requested, we have considered your enquiry and have provided our views. ... Cash or near cash property is considered to be used principally in the business if its withdrawal would destabilize the business. 2. ... Cash balances which accumulate and are then depleted in accordance with the annual seasonal fluctuations of an ongoing business will generally be considered to be used in the business, but a permanent balance in excess of the company's reasonable working capital needs will generally not be considered to be so used. 4. ...

Primary purpose of trip must be considered for work related stop on way home or to regular workplace. ... In our view, travel from home to a company facility is considered personal. However, travel between various facilities would probably be considered employment related. ...

Ruling E is amended to replace the final words "...the first taxation year of the Trust shall be considered to commence with the date that the Concurrent XXXXXXXXXX Lease is entered into by the Trust and B Co and the last taxation year of the Trust which will be considered to end on XXXXXXXXXX." with the following words "...the term of the Concurrent XXXXXXXXXX Lease shall be considered to commence with the date that the Concurrent XXXXXXXXXX Lease is entered into by the Trust and B Co and the last taxation year of the Trust which will be considered to end on XXXXXXXXXX." Ruling F is also amended to delete the final words "the first taxation year of the Trust shall be considered to commence with the date that the Concurrent XXXXXXXXXX Lease is entered into by the Trust and B Co and the last taxation year of the Trust will be considered to end on XXXXXXXXXX. ...

You queried whether Holdco's cash could be considered to be "used principally in an active business carried on... by a corporation related" to Holdco. ... As an example, certificates of deposits required to be maintained by a supplier would generally be considered to be used in a business. ... The employment of cash merely as collateral is not generally sufficient to enable it to be considered to be used in a business. ...

Principal Issues: Will an individual be considered to be enrolled when that individual has accepted a position at a qualifying institution? ... Reasons: An individual will be considered enrolled when the particular designated institution considers the individual to be enrolled. ... We have concluded that an individual will be considered enrolled for purposes of the Act when the individual is considered enrolled by the particular designated educational institution. ...

Where it is clearly to the employer's advantage for an employee to be a member of a club, the employee is not considered to have received a taxable benefit.  ... You have also referred to correspondence issued by this Department which suggests that government employees are considered to have received taxable benefits where club dues are paid on their behalf by their employer.  ... If such is not the case and the primary benefit is considered to go to the employer then the general guidelines set out in the bulletins apply equally. ...

Where it is clearly to the employer's advantage for an employee to be a member of a club, the employee is not considered to have received a taxable benefit. ... You have also referred to correspondence issued by this Department which suggests that government employees are considered to have received taxable benefits where club dues are paid on their behalf by their employer. ... If such is not the case and the primary benefit is considered to go to the employer then the general guidelines set out in the bulletins apply equally. ...

(a) Whether foreign currency is considered to be a marketable security for the purposes of subparagraphs 108(2)(b)(iii) and 204.4(2)(a)(ii) of the Income Tax Act (the "Act") and subsection 5000(7) of the Regulations, and (b) whether income derived from the disposition of foreign currency would be considered as "income derived from, or from disposition of marketable securities" for the purposes of the provisions mentioned in (a) above, and the income would not be considered as being derived from commodities and/or from active business. 4. ... (a) Foreign currency, in our view, is not a marketable security for the purposes of subparagraphs 108(2)(b)(iii) and 204.4(2)(a)(ii) of the Act and subsection 5000(7) of the Regulations; (b) As foreign currency is not considered to be a marketable security, income derived therefrom, or from dispositions thereof would not be considered to be income derived from or from dispositions of marketable securities. Furthermore, this income may be considered as derived from dealing in commodities. 4. ...

In accordance with Interpretation Bulletin IT-392, the LLC is considered to have a capital stock consisting of 100 issued shares and each owner of a beneficial interest in the LLC is then considered to own a number of shares proportionate to his or her beneficial interest in the LLC. Each amount distributed on account of profits by the LLC to its owners will be considered dividends for purposes of the Act and the Regulations made thereunder. 3. ... Income Tax Convention These comments are provided in accordance with the guidelines set out in paragraph 22 of Information Circular IC 70-6R4 dated January 29, 2001, issued by the Canada Customs and Revenue Agency (the "CCRA") and are not considered binding on the CCRA. ...