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The entering by the Non-Resident Holders into the Settlement Agreement and their voting in favour of the Plan, in and of themselves, will not result in any of the Non-Resident Holders being considered to not deal at arm's length…with either the Trust or the Trustee. ...

[T]o the extent that it can be established that the amount owing which was assumed by CFA 3 on the absorptive merger was in respect of assets previously acquired by CFA 3 in the course of carrying on an active business, the loan to CFA 3 by the Taxpayer should be considered as having been incurred for the purpose of earning income from an active business. ...

After quoting 9725615 as to the meaning of "significant," CRA noted that an "increase in interest of only a small percentage ["faible pourcentage"] could be considered by the CRA not to be significant. ...

Respecting the second condition, CRA stated "providing a range of municipal-type services or providing a key service traditionally offered by the provinces or territories such as social services, oversight of the environment, health services, and education is generally considered to constitute performing a function of government," and then stated: It is not sufficient to merely state that they are providing several municipal type services. ...

Respecting s. 191(3)(b), CRA noted that although Corporation acquired the Class C shares, it could not be considered to have a substantial interest in itself and, conversely, it acquired those shares from a person (Trust) who already had a substantial interest in Corporation. ...

However, if a similar benefit is provided by the corporation to all the employees, including those who also are shareholders, the latter will be considered to have received a benefit by reason of their employment....If the advantage is conferred by the corporation on the employee-shareholder as employee, the corporation may reduce the amount included in the computation of its income... by the amount included in the income of the employee by virtue of paragraph 6(1)(a) [and otherwise for s. 15 benefits]. ...

Response After adverting to the fact that s. 56.4(3)(c)(ii) and s. 56.4(7)(b) refer only to an undertaking not to provide a competitive property or service, CRA stated (Tax Interpretations translation): If the wording of the non-solicitation covenant is considered as an integral part of the non-compete covenant, the non-solicitation covenant would not by itself disqualify the restrictive covenant for the purposes of the exceptions provided in subparagraph 56.4(3)(c)(ii) or subsection 56.4(7). ...

For these purposes, any indebtedness of Foreign SpinCo will be considered to reduce the FMV of each property of Foreign SpinCo pro rata in proportion to the relative FMV of all property of Foreign SpinCo. ...

" Rulings: Including that "the Proposed Transactions, in and by themselves, will not be considered to result in any disposition to, or increase in interest by, an unrelated person described in subparagraphs 55(3)(a)(i) to (v). ...

As a result of Foreign Subco1 thereby becoming the sole member of Foreign LP, Foreign LP will effectively be dissolved so that its property will be considered to be distributed to Foreign Subco1, and Foreign Subco1 will assume all the obligations of Foreign LP. ...