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The will might indicate the names of some charities that should be considered but would not attempt to control the trustees’ discretion as to the choice of charities or the allocation of funds to any particular charity. ... As noted above, while a review of the terms of the particular will would be required to determine whether the spousal testamentary trust has in fact made a gift to a qualified donee, it is our view that the trust may be considered to have made a gift in the circumstances described. ...

A would be considered to have acquired control of the corporation, resulting in a deemed year-end (taxation year 3) pursuant to subsection 249(4). ... In this regard, we also considered the provisions of subsection 256(7), which deems there not to be an acquisition of control in some situations, and determined that they did apply to any of your hypothetical transactions. ...

Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in paragraphs 3 and 5 of IT-365R2. 961030 XXXXXXXXXX Attention: XXXXXXXXXX XXXXXXXXXX, 1996 Dear Sirs: Re: Advance Income Tax Ruling Structured Settlement XXXXXXXXXX We are replying to your letter of XXXXXXXXXX with enclosures wherein you request an advance income tax ruling on behalf of the above-named taxpayer with respect to a proposed structured settlement for damages arising out of personal injuries suffered by the taxpayer. ... The Insurer will not, however, be released and discharged from making such payments and each payment shall to the extent thereof and only to that extent, operate as a pro tanto release and discharge of the obligation to make such payments. 7.The Insurer proposes to fund its obligations to make the payments in 5 above by the purchase of annuity contracts issued by XXXXXXXXXX Each annuity contract will be non-commutable, non-assignable and non-transferable. 8.The owner and annuitant (beneficiary) under each annuity contract will be the Insurer; however, an irrevocable direction will be executed in respect of each annuity contract directing the issuer to make the payments to the Plaintiff or XXXXXXXXXX estate, as the case may be. 9.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in paragraphs 3 and 5 of IT-365R2. 961246 XXXXXXXXXX Attention: XXXXXXXXXX XXXXXXXXXX, 1996 Dear Sirs: Re: Advance Income Tax Ruling Structured Settlement XXXXXXXXXX We are replying to your letters of XXXXXXXXXX, with enclosures wherein you request an advance income tax ruling on behalf of the above-named taxpayer with respect to a proposed structured settlement for damages arising out of personal injuries suffered by the taxpayer. ... In consideration of the XXXXXXXXXX making such payments, the Plaintiffs settle their claims against the Defendants and the insurers of XXXXXXXXXX will not, however, be released and discharged from making such payments and each payment shall to the extent thereof and only to that extent, operate as a pro tanto release and discharge of the obligation to make such payments. 7.XXXXXXXXXX proposes to fund its obligations to make the payments in 5 above by the purchase of an annuity contract issued by XXXXXXXXXX The annuity contract will be non-commutable, non-assignable and non-transferable. 8.The owner and annuitant (beneficiary) under the annuity contract will be the XXXXXXXXXX however, an irrevocable direction will be executed in respect of the annuity contract directing the issuer to make the payments directly to XXXXXXXXXX or XXXXXXXXXX legal representative, or XXXXXXXXXX estate, as the case may be. 9.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Reasons FOR POSITION TAKEN: The position is considered to be consistent with the Department's position in paragraph 3 which indicates that damages paid in the form of periodic payments are not taxable. ... The annuity contract will be non-commutable, non-assignable and non-transferable. 8.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

However, if the shares of the parent acquired by the vendor are converted into shares of the amalgamated corporation in circumstances where the fair market value of such shares may be considered to be determinable primarily by reference to the fair market value of a particular property, or to any proceeds from the disposition of a particular property, such shares of the amalgamated corporation will be considered to have been acquired in substitution for the particular property pursuant to proposed paragraph 88(1)(c.3). ...

Reasons FOR POSITION TAKEN: Consistent with the position in 940504 and the Department's position in paragraphs 3 and 5 of IT-365R2, the periodic payments are considered to be in the nature of non-taxable damages. ... However, an irrevocable direction will be executed in respect of the annuity contract directing Lifeco to make the payments directly to the Claimant or XXXXXXXXXX estate, as the case may be. 9.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in paragraphs 3 and 5 of IT-365R2. ... However, an irrevocable direction will be executed in respect of the annuity contract directing Lifeco to make the payments directly to the Claimant or XXXXXXXXXX estate, as the case may be. 10.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Finally, where damages in respect of a breach of contract or tort are paid by the employer to compensate for investment losses caused by the employer as administrator of a registered plan which has been established for a group of employees, such damages paid by the employer to the employees' accounts within the registered pension plan or deferred profit sharing plan or to the individual RRSPs or RRIFs are not considered employment income to the employees. In these circumstances neither the employer nor the employee are considered to have made a contribution to the plan as a consequence of the payment of the damages and thus there is no contribution deduction available. ...

However, the Department has never been asked to consider whether a transfer from an ESOP to an IRA would be considered a contribution to the IRA by the taxpayer or the taxpayer's spouse or former spouse. ... The taxes, other than penalty taxes, withheld by the administrator of the IRA is considered to be non-business taxes paid to the United States. ...