Search - considered

You request our view whether the banking business of FA could be considered to be a business conducted principally with arm's length persons notwithstanding that from time to time more than half of its assets may be invested in loans to non-arm's length persons. ... A person who invests funds in the shares of a corporation or loans funds to the corporation is generally not considered a client of the corporation's business. ...

As requested, we have considered the situation outlined in your letter and have provided some comments below. ... If a debt is merely doubtful of collection, it should not be claimed as a bad debt but should be considered for purposes of a reserve for doubtful debts under subparagraph 20(1)(l)(i). ...

Another possible income tax consequence of a producer receiving funding from another person will arise if the amount is considered "assistance". ... Since tax policy issues and amendments to the legislation are the responsibility of the Department of Finance, they would have to be considered by that Department. ...

In a situation wherein a steam host is not considered as a part of such a producer's system referred to in paragraph (c) of Class 43.1, it is our view that for the purpose of subsection 1104(14) of the Regulations, any reduction of demand for steam by (or permanent shut-down of) the steam host would not be considered as a deficiency, failing or shut-down of the producer's system that was previously operated in the manner required under paragraph (c) of Class 43.1. 5. ...

Consequently, payments received by you are to be included in income for Canadian tax purposes under paragraph 6(1)(g) of the Income Tax Act except for the payments that can be reasonably considered to be a return of amounts which you contributed to the plan. As stated in paragraph 19 of Interpretation Bulletin 502 entitled Employee Benefit Plans and Employee Trusts, payments from an employee benefit plan are considered to be first a return of EBP beneficiary contributions, secondly a distribution of the plan's income for the year, thirdly a distribution of employer contributions and finally a distribution of the plan's prior years' income, if any. ...

In order for a child to be considered wholly dependent on a parent, the parent must be responsible for the usual day-to-day activities of raising the child, such as ensuring the child attends school, preparing regular meals, etc. ... This can be contrasted with situations where the parent only has visitation rights or "legal access" rights where the child would still be considered to be living with the other parent. ...

We stated: Where a particular currency has become a generally accepted currency for conducting business in a country, such currency may be considered "reasonable in the circumstances," notwithstanding that some other currency is the official currency of that country. As well, the currency that is used for income tax purposes in the foreign jurisdiction would normally be considered "reasonable in the circumstances. ...

We understand that, to the best of your knowledge and that of the Individual, none of the issues involved in the ruling request (i) is in an earlier return of the Individual or a related person, (ii) is being considered by a tax services office or tax centre in connection with a previously filed tax return of the Individual or a related person, (iii) is under objection by the Individual or a related person, (iv) is before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, and (v) is the subject of a ruling previously issued by the Directorate. ... The amount transferred from the Plan to the IRA at the Individual's request will be considered a contribution to the IRA by the Individual for purposes of paragraph 60.01(b) of the Act. ...

However, we have considered your enquiry and have provided some comments below which are of a general nature only. ... Based on the jurisprudence, the words "can reasonably be regarded as contributing to the use and enjoyment of the housing unit as a residence" in the definition of "principal residence" in paragraph 54(e) of the Act do not include recreational uses or lifestyle uses and, in our view, excess land purchased to accommodate pets and livestock would not be considered necessary for the use and enjoyment of the housing unit as a residence. ...

In our view, a detached garage to be used for a manufacturing business will be considered a business property and will not qualify for the principal residence exemption whether the taxpayer chooses to claim capital cost allowance or not. ... In our view, the modifications required appear to be part of the construction of the detached garage and would be considered part of the building and not separate assets. ...