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Examples include tax indemnities in standard provisions such as gross-up clauses in loan agreements or ISDA agreements, or in employment and severance agreements As another example, an employee of a Canadian bank provides general information to a client regarding the tax benefits of contributing to an RRSP and the RRSP plan document provides that the client will indemnify the trustee (a bank subsidiary) in the event that the RRSP plan is subject to tax, for example, as a result of holding a non-qualified investment: this indemnity “is not considered to be contractual protection in respect of the avoidance transaction, on the basis that this indemnity is a form of protection that applies in the normal commercial or investment context.” ...

In addition, any amounts that are included in income pursuant to paragraphs 12(1)(a) or (b) would also be considered gross revenue for purposes of Part IV of the Regulations. ...

Authorized sub-advisor to a non-authorized fund manager (p. 35) …[W]ould a portfolio manager, subadvisor, or administrator that has a contractual relationship with the "primary" fund manager be considered to be managing the entity in determining if paragraph, (k) is satisfied? ...

However, exceptions would be considered in some circumstances to proceed with administrative garnishment action at a rate that would exceed the provincial limitations. ...

In determining whether a particular program is child care, some factors that would be considered are the age of the participating children, the qualifications of the individuals operating the program, the extent that progress is measured and goal-orientation is involved, and the time devoted to the program. ...

. … Example of causal allocation (exam cost allocated based on where hires went) Example 10 Financial Institution J had 100 applicants who went through a general process to qualify to be considered for a position with Financial Institution J, and it hired 5 new employees as a result of this process: 1 employee to work in Department A to make taxable supplies for consideration and 4 employees to work in Department B to make exempt supplies. ...

Alternatives for testing for economic substance include: introducing a sole or dominant purpose test (under which, for example, “[w]here a taxpayer has no bona fide commercial or other non-tax purpose (or almost no such purpose), the relevant transactions could be considered to be sufficiently lacking in economic substance” (p. 24); determining whether a transaction has the potential for pre-tax profit after taking into account the costs of the transaction, which might then be compared to the tax savings (p.24); determining whether the transfers of rights and assumptions of obligations under the transaction affected the economic positions of the participants in the transaction (so that "[i]f the economic exposure of the participants to a transaction is not materially affected by the transfers of rights and obligations under the transaction, then the transaction can be said to be lacking in economic substance” (p. 25). assessing whether the legal form of the transactions differs significantly from the accounting treatment of the transactions (p. 26). ...

The Tax Court of Canada considered this issue in Crestglen Investments Limited [f.n. 9: Crestglen Investments Limited v. ...

In addition, an activity that might not ordinarily be classified as a business (such as buying, selling and holding investments) may be considered as such if it is carried on as a business endeavour. … 29. … [T]he fact that a partnership is formally registered under partnership law does not necessarily mean that a partnership (or business) actually exists. ...