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30 January 2018 External T.I. 2017-0717401E5- Fishing Licences Unedited CRA Tags 73(3), 73(3.1), 73(4), (4.1), 110.6(1), 110.6(1.3), 70(9), 70(9.01), 70(9.2), 70(9.21), 70(9.8), 70(10) Principal Issues: Can fishing licences be considered as QFFP as defined in subsection 110.6(1)? ... Subsection 110.6(1.3) of the Act further provides that for purposes of applying the definition QFFP in respect of a property, such as a fishing licence used in a fishing business, such property will not be considered to have been used in the course of carrying on the business of farming or fishing in Canada unless the 24 month continuous ownership test described in subparagraph 110.6(1.3)(a)(i) of the Act by one or more persons described in clause (A) to (D) of that subparagraph is met and one of the two use tests described in clause (A) or (B) of subparagraph 110.6(1.3)(a)(ii) is met. ...

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. ... For example, a request made in 2017 must relate to the 2007 or a later tax year to be considered. ...

In such circumstances, would the CRA’s administrative practice be available to allow a gift to be made beyond the 60-month period such that it would be considered to meet the conditions in subsection 118.1(5.1) with regards to the timing of the gift? ... The issue will be considered in the upcoming review of guides and publications for the 2018 tax year. ...

Our Comments Where a trust distributes assets in satisfaction of a non-resident beneficiary’s capital interest in the trust, the beneficiary is considered to have disposed of that interest. The disposition of the capital interest will be considered to be a disposition of taxable Canadian property as defined in subsection 248(1) pursuant to paragraph (d), where the trust is not a mutual fund trust, if, at any particular time during the 60-month period that ends at that time, more than 50% of the fair market value of the interest was derived directly or indirectly (otherwise than through a corporation, partnership or trust the shares or interests in which were not themselves taxable Canadian property at the particular time) from one or any combination of (i) real or immovable property situated in Canada, (ii) Canadian resource properties, (iii) timber resource properties, and (iv) options in respect of, or interests in, or for civil law rights in, property described in any of (i) to (iii) above, whether or not the property exists. ...

We understand that, to the best of your knowledge, and that of the Claimant, none of the issues described herein is: a) in a previously filed tax return of the Claimant or a related person; b) being considered by a Tax Services Office or Taxation Centre in connection with a previously filed tax return of the Claimant or a related person; c) under objection by the Claimant or a related person; d) the subject of a current or completed court process involving the taxpayer or a related person; or e) the subject of a Ruling request previously considered by the Directorate. ...

.; (ii) Would reporting the gain or loss on a naked share option on income account as described in paragraph (i) above affect a taxpayer's determination of whether a gain or loss on a disposition of other Canadian securities is on income account or capital gain or loss ("on capital account"), if his or her course of conduct and intention (as discussed in paragraphs 10 to 13 and 25 of IT-479R) indicate that the proceeds of disposition of the other Canadian securities be considered to be on capital account; (iii) Would a stock call written outside a registered retirement savings plan trust ("RRSP") a) in order to hedge a stock inside an RRSP; or b) where the same or similar call is held inside an RRSP (i.e. different month or strike price) be considered as a separate security so that the stock call would constitute a naked option. ...

In the event that the dividend is designated under subsection 104(19) by the GRE in respect of a beneficiary that is a spousal trust and in turn the dividend is designated under subsection 104(19) by the spousal trust in respect of a beneficiary that is an individual, the exception in subsection 112(3.32) should be applicable such that the taxable dividend received by the GRE and ultimately paid to the individual beneficiary of the spousal trust should not be considered in the application of paragraph 112(3.2)(b). Note that in order for a dividend to be designated under subsection 104(19) by a trust in respect of a beneficiary the provision requires, inter alia, that the amount may be reasonably considered to be included in the beneficiary’s income because of the application of paragraph 104(13)(a), subsection 104(14) or section 105. ...

Generally, if the basis of taxation is substantially similar to the ones in Canada, in the sense that it is also levied on net income or profits (but not necessarily as would be computed for Canadian tax purposes), the foreign tax will be considered as an income or profit tax for purposes of the Canadian FTC rules. ... US Subpart F income is not deemed to be income under Canadian domestic law and would thus not be considered as US-sourced income for the FTC calculations. ...

Reasons: The location of customers is relevant except where it can reasonable be considered that one of the main purposes for the establishment of the business-client relationship with the First Nation organization is to serve as a connection between the Indian’s business income and a reserve. 5-972173 XXXXXXXXXX Karen Power, C.A. (613) 957-8953 Attention: XXXXXXXXXX May 12, 1998 Dear Sirs: Re: Self-employed Income Earned by a Status Indian We are writing in response to your letter of August 11, 1997 wherein you requested our comments regarding the taxation of income earned by a self-employed status Indian. ... Consequently, in the above-described situation, the weight that the on-reserve location of the customers would otherwise carry, as a connecting factor, will not be recognized if it can reasonably be considered that one of the main purposes for the establishment of the business-client relationship with the First Nation organization is to serve as a connection between the logger’s business income and a reserve, by acting as an intermediary between the logger and actual log buyers who are located off reserve. ...

Generally, however, a trust or estate is considered to reside where the trustee, executor or other legal representative who manages or controls the trust or estate assets resides. ... In the scenario described above, it is likely that the estate would be considered to be resident in Canada as the sole executor under the estate is a Canadian resident individual. ...