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Position: A similar series of transactions (“Transactions”) was recently considered by the GAAR Committee. ... Although the GAAR Committee considered that the Transactions circumvented the integration principle, it recommended that the GAAR not be applied. ...

However, if a material part of the excess is accumulated each year and the balance of accumulated excess at any time is greater than the association’s reasonable needs to carry on its non-profit activities, profit may be considered to be one of the purposes for which the association was operated. ... It is the CRA’s view that a payment to attend a conference as a delegate of an organization, that is not directly for the personal benefit of a member but incidentally benefits a member, while mainly benefiting the organization, will not be considered to be a benefit to members. ...

Finally, given the specific nature of your question, please note that we have not considered the application of any other provision of the Act in the context of your query; however, we would note that transfer pricing implications should be considered. ...

As indicated in paragraph 1.62 of Income Tax Folio S3-F6-C1 Interest Deductibility (the “Folio”), it is the CRA’s position that assumed debt can be considered to be an amount payable for property acquired, as contemplated in subparagraph 20(1)(c)(ii), where, as in this illustrative fact pattern, it is assumed as part of the purchase price of an asset acquired by the taxpayer. The Income Tax Rulings Directorate has previously considered situations similar to the one presented above, in the context of income trust set-ups, where an internal leveraged buy-out is put in place (see Income Tax Technical News 34, dated April 27, 2006, under “Income Trusts and Interest Deductibility”). ...

Generally, payments to medical practitioners are considered eligible medical expenses when they are paid for medical services or procedures that relate to existing illnesses or conditions of the patient. ... In our view, amounts paid for the cost of the Procedures when medically indicated (such as for the medical condition of infertility), or medically advisable because of impending medical treatments (such as when a patient is to undergo chemotherapy for cancer that is likely to have a direct, significant, negative effect on reproductive functions) would be considered medical services or laboratory, radiological or other diagnostic procedures or services, as applicable. ...

Thus, if in a particular taxation year the corporation has a capital gain that is considered to have a U.S. source (see paragraphs 1.62 to 1.65 of the above-mentioned folio), the taxable portion thereof would be considered “income arising in the United States” in that year for the purposes of paragraph 7 of Article XXI. ...

Specifically, you are asking whether each of the following fees are considered to be an “eligible fitness expense” as defined in subsection 122.8(1) of the Income Tax Act (the “Act”): registration fee for on-ice training, $XXXXXXXXXX for the season depending on the level of the skater (August to March); registration fee for the season extension of the on-ice training, $XXXXXXXXXX for the period (April to June); fitness activities fees for training that uses 20 different exercise stations and is controlled by specialized coaches in a gymnasium to get the skaters in shape; $XXXXXXXXXX per block of eight weeks. ... Therefore, each program would need to be evaluated separately to determine if it would be considered a prescribed program of physical activity. ...

The main factors we considered in our analysis of these entities are the existence of a separate legal personality that is recognized under the law of the relevant foreign jurisdiction – meaning the full legal capacity to acquire and own property, to sue and be sued, to carry on their own activities and to incur liabilities of their own – and the extensive limitation of liability afforded to all of their members. ... We find it difficult to accept that an entity that is solely and entirely responsible for its own obligations can be considered not to be the relevant unit for the purposes of assessing tax under the Act. ...

The main factors we considered in our analysis of these entities are the existence of a separate legal personality that is recognized under the law of the relevant foreign jurisdiction – meaning the full legal capacity to acquire and own property, to sue and be sued, to carry on their own activities and to incur liabilities of their own – and the extensive limitation of liability afforded to all of their members. ... We find it difficult to accept that an entity that is solely and entirely responsible for its own obligations can be considered not to be the relevant unit for the purposes of assessing tax under the Act. ...

Reasons: Subparagraph 6(1)(b)(iii) excludes the stipend because it is considered a "representation or other special allowance" and was funded by the Canadian International Development Agency under its International Youth Internship Program. ... Hence, we are of the view that the stipend will be considered a “representation or other special allowance” for the purposes of subparagraph 6(1)(b)(iii) of the Act provided the intern was resident in Canada at any time in the three month period preceding the day on which his or her services commenced outside of Canada. ...