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Under the definition of principal residence in the Income Tax Act, if the total area of the contiguous land upon which a housing unit is situated exceeds 1/2 hectare, the excess land is considered not to be part of the principal residence unless the client establishes that such excess land is necessary for the use and enjoyment of the housing unit as a residence. ... To the extent that a taxpayer, in order to acquire a property as a residence, is required because of such a law or resolution to acquire land that exceeds one-half hectare, the land that must be so acquired is generally considered to be necessary for the use and enjoyment of the housing unit as a residence throughout the period that the property is continuously owned by the taxpayer after the acquisition date. ...

Once a child of a marriage reaches the age of majority, that child is no longer considered to be in the custody of the parent. ... It is our view that once a child of a marriage reaches the age of majority, that child is generally no longer considered to be in the custody of the parent. ...

You advise that to the best of your knowledge and that of the XXXXXXXXXX, none of the issues involved in the ruling request is: I. in an earlier return of the XXXXXXXXXX or a related person; II. being considered by a taxation services office or a taxation centre in connection with a previously filed tax return of the XXXXXXXXXX or a related person; III. under objection by the XXXXXXXXXX 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 not expired; or V. the subject of a ruling previously issued by the Directorate. ... RULING GIVEN Provided that the above statements constitute a complete and accurate disclosure of all of the relevant facts, proposed transactions, and purpose of the proposed transactions and provided further that all the proposed transactions are implemented as described above, we confirm the following: The Corporation will be considered to an association organized exclusively for a purpose other than profit with no part of its income payable to or otherwise available for the personal benefit of any member so that, in any year in which it, in fact, operates on such basis, the Corporation will qualify as a non-profit organization as described in paragraph 149(1)(l) of the Act and will, accordingly, be exempt from tax under Part I of the Act on its taxable income for that year. ...

It is our view that owning a house or a condominium apartment in Canada which is solely used as a vacation property for three to four weeks annually in Canada by the taxpayer and owning a bank account in Canada to cover the management expenses of such property, in and by themselves, are not conclusive to cause the taxpayer to be considered resident in Canada for the purposes of the Income Tax Act (the "Act"). In this case even if the taxpayer were considered resident in Canada for the purposes of the Act, as the taxpayer is a resident of Italy which is a country with which Canada has an income tax convention and as the taxpayer's centre of vital interest is very likely in Italy, effective after February 23, 1998, new subsection 250(5) of the Act would operate to deem him not to be resident in Canada. ...

As requested, we have considered the situation outlined in your letter and have provided some comments below. ... Although a particular place does not necessarily need to be licensed as a nursing home in order to be considered as such, it must have sufficient staff to operate as a nursing home. ...

Not considered to be a material change to the lease. Reasons: Grandfathering rule for leases entered into prior to XXXXXXXXXX. ... We understand that to the best of your knowledge and that of the taxpayers involved none of the issues involved in this ruling is being considered by a Tax Services Office or a Taxation Centre in connection with any tax return already filed, and none of the issues involved in the requested rulings is the subject of any notice of objection or is under appeal. ...

Paragraph 12(1)(x) of the Act applies to, among others, payments received in the course of earning income from a business or property, from a government, municipality or other public authority, where the particular amount can reasonably be considered to have been received as a refund, reimbursement, contribution or allowance or as assistance, whether as a grant, subsidy, forgivable loan, deduction from tax, allowance or any other form of assistance in respect of an amount included in, or deducted as, the cost of property or an outlay or expense. Interpretation Bulletin IT-334R2, Miscellaneous Receipts, discusses various tax treatments which would be taxable under section 3 of the Act and paragraph 3 of the bulletin describes factors in respect of when a particular receipt should be considered a "windfall" and not subject to tax unless there is a specific statutory provision such as paragraph 12(1)(x) of the Act. ...

We understand that the reason for your request is that pursuant to subsection 96(9) of the Employment Insurance Act ("EIA"), "If at any time during a year for which a refund is sought two or more employers are associated, as defined by the regulations, they shall be considered a single employer for the purposes of subsections (6) to (8.4) and any refund shall be allocated to them in the prescribed manner". ... For the purpose of determining whether two or more corporate employers are considered to be "associated employers" as that term is defined in subsection 126.1(2) of the Act it is necessary to consider whether such employers are "associated corporations" under the rules found in section 256 of the Act. ...

Our Comments We are unable to provide the above confirmation as such a request could only be considered in the context of a request for an advance income tax ruling with respect to proposed transactions involving specific taxpayers. ... However, in our opinion, where such property is described in paragraph (a) of the definition "Canadian resource property" in subsection 66(15) of the Act, the above proceeds of disposition arise from the sale of all or an interest in that property in circumstances to which the provisions of subsection 66.7(14) of the Act do not have application and the successor corporation has included such proceeds of disposition in computing an amount determined under paragraph (a) of the description of F in the definition "cumulative Canadian oil and gas property expense" (CCOGPE) in subsection 66.4(5) of the Act and would (immediately before the time the above proceeds of disposition become receivable by it) have a balance determined under paragraph 66.7(5)(a) and paragraph 66.7(4)(a) of the Act in respect of the acquisition of that property, generally, in determining the amounts under subparagraphs (b)(ii) and (c)(ii) of the description of F in the definition of CCOGPE, the provisions of neither of clause 66.7(5)(a)(ii)(B) nor clause 66.7(4)(a)(iii)(C) of the Act would be considered to exclude such proceeds of disposition from the determination of an amount under subparagraph 66.7(5)(a)(ii) or subparagraph 66.7(4)(a)(iii), respectively, of the Act. ...

You advise that to the best of your knowledge and that of the taxpayers referred to above, none of the issues involved in the ruling request is: I. in an earlier return of the taxpayers or related persons; II. being considered by a taxation services office or a taxation centre in connection with a previously filed tax return of the taxpayers or related persons; III. under objection by the taxpayers or related persons; IV. before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired; or V. the subject of a ruling previously issued by the Directorate. ... Pursuant to our ruling XXXXXXXXXX ("Ruling I") dated XXXXXXXXXX, 1998, we confirmed that the Authority would be considered a public body performing a function of government in Canada within the meaning of paragraph 149(1)(c) of the Act and thus be exempt from Part I tax on its taxable income. ...