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Principal Issues: Is the accrued gain realized by a trust on the distribution of property to a n/r beneficiary considered payable to that beneficiary in the absence of an election under 107(2.11)? ... You ask whether the Canada Custom and Revenue Agency takes the view that, where the trustee has not made an election under paragraph 107(2.11)(a), a distribution of property to a non-resident beneficiary necessarily results in the amount of any taxable capital gain realized as a result of the distribution being considered to be payable to that non-resident beneficiary such that the trustee would be required to remit Part XIII tax on behalf of the non-resident beneficiary in respect of such amounts. ...

The Guidelines also explain that the value of any "complimentary benefits" to the donor will be considered an advantage unless the aggregate value of such benefits, per ticket sold, does not exceed the lesser of 10% of the ticket price and $75 ("the de minimis rule"). ... Therefore, the de minimis rule does not apply and the eligibility to win a raffle prize is an advantage to the donor, the value of which must be considered in computing the eligible amount of the donor's gift. ...

As a general rule, however, an allowance that is designed to cover an employee's out-of-pocket costs for the use of the motor vehicle during the course of performing the duties of employment, is considered a reasonable allowance for purposes of paragraph 6(1)(b) of the Act. ... In a situation where an employee receives a reasonable per-kilometre allowance for business travel outside the metropolitan area in which the business is located and a flat-rate allowance that is only for business travel within the metropolitan area, each allowance is considered separately in determining whether subparagraph 6(1)(b)(x) of the Act applies. ...

Further to paragraph 10 of Interpretation Bulletin, IT-516R2, where a university or college considers that the students enrolled in their programs are in full-time attendance, they are generally considered to have met the full-time attendance requirement. However, a student is not considered to be in full-time attendance at a university outside Canada where the courses taken are less than 13 consecutive weeks duration, are only by correspondence or by via distance learning (Internet), or where the student is carrying only a minor course load and is devoting much of his or her time to money earning activities. ...

Principal Issues: What is CCRA's interpretation of the words "relatively small" as used in the sentence "...you are not considered to have changed its use if: your rental or business use of the property is relatively small in relation to its use as your principal residence"? Position: No specific percentage provided, taxpayer referred to comments provided in paragraph 30- 32 of IT-120R6 Reasons: Question of fact. 2003-003355 XXXXXXXXXX Karen Power, CA (613) 957-8953 October 17, 2003 Dear XXXXXXXXXX: Re: Partial Change in Use of a Principal Residence We are writing in reply to your letter of May 29, 2003, requesting our comments on the interpretation of the words "relatively small" as used in the sentence "...you are not considered to have changed its use if: your rental or business use of the property is relatively small in relation to its use as your principal residence... ...

Holloway 613-957-2104 November 3, 2003 Dear XXXXXXXXXX: Re: Canada Pension Plan Contributions and Partnership Income Allocations This is in reply to your letter of September 5, 2003, requesting our opinion on whether partnership income allocations to individual partners would be considered contributory self-employed earnings for purposes of the Canada Pension Plan, R.S.C., c. ... You had asked whether partnership income allocated to this individual would be considered contributory self-employed earnings for purposes of the CPP. ...

Reasons: Software and hardware maintenance agreements are considered a form of indemnity provided to purchasers to secure them against certain repair costs or the costs of acquiring updates. ... In general terms, software and hardware maintenance agreements are considered a form of indemnity provided to purchasers to secure them against certain repair costs or the costs of acquiring updates. ...

Reasons: Depending on the circumstances the individual could be considered to transfer the beneficial interest in the shares directly to the sons' holding companies. ... A may be considered to have transferred his beneficial interest in the preferred shares of Opco directly to Bco and Co. 1 Consequently, subsection 84.1(1) would apply and each of Bco and Co would be deemed to have paid a dividend to Mr. ...

REASON FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with CCRA's position set out in IT-365R2. ... To the best of your knowledge, and that of the taxpayer involved, none of the issues contained herein is: (i) dealt with in an earlier tax return of the Claimant or a related person; (ii) being considered by a tax services office or taxation center in connection with a previously filed return of the Claimant or a related person; (iii) under objection by the Claimant or a related person; (iv) before the Courts or, if a judgment has been issued, the time limit for appeal to a higher court has expired; or (v) subject of a ruling previously issued by the Income Tax Rulings Directorate. ...

Does the existence of a bargain purchase option, supercede the legal relationship such that it is considered a sale? ... Therefore, that portion would be considered as the "option" cost to the lessee and a disposition of property to the lessor. ...