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You have advised us that to the best of your knowledge and that of XXXXXXXXXX none of the issues involved herein are being considered by a Tax Services Office or Taxation Centre of Revenue Canada in connection with a tax return already filed and that none of the issues are under objection or appeal. ... C.The full amount of the Retiring Allowance will be deductible in determining the income of XXXXXXXXXX for the taxation year for which it is paid and will be considered reasonable for the purpose of section 67 of the Act. ...

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 A 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. ...

We confirm that the above noted Ruling Letter is hereby cancelled in its entirety and replaced with the following: You have advised that to the best of your knowledge and that of all the taxpayers involved, none of the issues raised in this letter are being considered by any Tax Services Office and/or Taxation Centre in connection with any tax return already filed, nor are any of these issues under objection or appeal. ... However, the Class XXXXXXXXXX Shares of XXXXXXXXXX acquired by XXXXXXXXXX are not considered to be acquired in the ordinary of XXXXXXXXXX business, consequently, any dividends that XXXXXXXXXX receives on the Class XXXXXXXXXX Shares of XXXXXXXXXX that are otherwise be deductible in computing the taxable income of XXXXXXXXXX for the year in which dividends are received, pursuant to subsection 112(1) of the Act, will not be denied by subsection 112(2.1) of the Act. ...

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. 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. ...

When a loan is made to a shareholder in the ordinary course of the creditor's business with the same terms and conditions as offered to the public at large, the terms of repayment will normally be considered reasonable for the purpose of proposed subsection 15(2.3) of the Act. In particular, the minimum payments required under the terms of most commercial revolving credit sources will be considered to meet the requirement that bona fide arrangements be made for repayment of the debt or loan with a reasonable time for the purposes of proposed subsection 15(2.3) of the Act. ...

Principal Issues: renegotiation of employment contract to reduce salary in exchange for increased (non-taxable) benefits both in and outside of a flexible benefit plan Position: diversion of existing salary entitlements to pay for benefits is taxable but, provided that a valid renegotiated contract has been substituted for the former contract, additional benefits provided outside a flex plan will not be taxed as salary- if an employee's salary entitlement under a contract that has not expired is diverted to create credits under a flex plan, the plan will be considered to be funded by means of employee contributions Reasons: once a contract of employment has expired (as is common in a collective agreement which is renegotiated at regular intervals), the employee's right to maintain the level of salary is open to negotiation; with the result that a salary rollback combined with increased benefits does not involve a forfeiture of an existing entitlement. ... In such circumstances, the amounts withheld from income by the employer and used to cover the premium obligations will not be considered as employer contributions, but rather after-tax employee contributions. ...

The amount of a reimbursement, among other things, received by a taxpayer in respect of the cost of property or in respect of other expenditure, if included in income under paragraph 12(1)(x) of the Act may be considered a non-government assistance payment. ... Where, under a contractual arrangement, NRCo does not carry on any business in Canada and reimburses CANCo in respect of SR & ED expenditures incurred by CANCo in Canada and CANCo includes the amount of the reimbursement in computing its income from a business carried on in Canada pursuant to subsection 9(1) of the Act, it is our position that the reimbursement would not be considered to be a non-government assistance or a contract payment for the purposes of paragraph 127(11.1)(c) of the Act. ...

Therefore, if the $50 was considered to be tuition for the purposes of paragraph 118.5(1)(a) of the Act, this amount and the amount paid in respect of the night course would satisfy the requirement that the aggregate of tuition fees paid to an educational institution exceed $100. ... In such circumstances, it is our view that the amount of $50 is in the nature of a withdrawal charge that cannot be considered to relate to any instruction the student may have received. ...

According to subsection 13(27), the vessel will be considered to be available for use at the earliest of: (a) the time at which the property is first used by the taxpayer to earn income (which is 1993 in the case at hand),... ... What is at issue, though, is whether the vessel is considered to be acquired "after Dec. 2, 1992 and before 1994". ...

In the event the $300,000 is not deductible, will the fee be considered to be income to Holdco in its 1993 year? ... Will the bonus be considered remuneration to Mr. A in 1993 and taxable in his hands in that year? ...