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(d) as a penalty or bonus payable by the taxpayer because of the repayment by the taxpayer of all or part of the principal amount of the debt obligation before its maturity, the payment shall, to the extent that it may reasonably be considered to relate to, and does not exceed the value at that time of, an amount that, but for... the repayment described in paragraph (d), would have been paid or payable by the taxpayer as interest on the debt obligation for a taxation year of the taxpayer ending after that time, be deemed,... ... Thus the Premium paid by the Issuer in the situation described in your letter would generally not be considered a penalty or bonus payable by the taxpayer because of the repayment of a debt obligation before its maturity such that subsection 18(9.1) would not apply in this situation. ...

Principal Issues: A) Would an amount be considered a retiring allowance; B) Would the employee be entitled to a deduction under paragraph 60(j.1) of the Act; Position: Yes. ... To the best of your knowledge and that of Opco none of the issues in respect of which rulings are herein requested is: (a) in an earlier return of Opco or a related person, (b) being considered by a tax services office or tax centre in connection with a previously filed tax return of Opco, (c) under objection by Opco or a related person, (d) before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, and (e) the subject of a ruling previously issued by the Income Tax Rulings and Interpretations Directorate. ...

Position TAKEN: 1) No, must be specified in the original agreement. 2) Not considered before, and we will review if submitted in the form of an advance tax ruling request. ... Therefore, it is not clear how the casualty insurer can be considered to have retained ownership of those funds. ...

Principal Issues: Application of 85(1)(b) where debt in excess of cost amount of transferred asset assumed on the insuance of a note Position: Paragraph 85(1)(b) applies Reasons: Assumed debt is considered to be consideration given for the transferred asset Case Update Canadian Tax Foundation Conference September 2000 Change in the CCRA's Position Regarding Paragraph 85(1)(b) Revenue Canada stated in its answer to question 47 at the Revenue Canada Round Table at the 1984 annual conference of the Canadian Tax Foundation that paragraph 85(1)(b) does not apply to a transfer of a property with liabilities in excess of cost amount where the excess is allocated to another property or is assumed by the purchaser in consideration for the delivery by the vendor of a promissory note in the amount of the excess. ... Thus, if the total non-share consideration so considered to have been given by the purchaser for the First Property exceeds the amount agreed upon by the vendor and purchaser in their election under subsection 85(1), paragraph 85(1)(b) will apply to increase the amount agreed upon. ...

Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in IT-365R2 (in particular paragraphs 3 and 5). ... To the best of your knowledge, and that of the taxpayer involved, none of the issues contained herein is, in an earlier return of the taxpayer or a related person, being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or a related person or is under objection by the taxpayer or a related person and is before the courts or, if a judgement has been issued, the time limit for appeal to a higher court has not expired. ...

Reasons FOR POSITION TAKEN: ATR-63 (under the heading "Law and Analysis") states that an entity can be considered an agent of the Crown in right of a province where an Act which established the entity expressly declares that the entity is an agent of the Crown. ... We understand that to the best of your knowledge and that of the taxpayers involved: i) none of the issues involved in the requested ruling is being considered by any District Tax Services Office or Taxation Centre of the Department in connection with a tax return already filed, and ii) none of the issues involved in the requested ruling is the subject of any notice of objection or is under appeal. ...

In determining the primary business of a corporation, are the activities of its subsidiary considered as well as the activities of a partnership of which it is a member? ... A number of criteria have to be considered, including the income generated by each kind of activity, the value of the assets devoted to each kind of activity, and the amount of time and effort devoted by employees to each kind of activity. ...

As requested, we have considered the situation outlined in your letter and have provided some comments below. ... If such an obligation exists, the plan will be considered an employee-pay-all plan provided such an arrangement was in place at the time contributions to the plan were made. ...

As requested, we have considered the situation outlined in your letter and have provided some comments below. ... If such an obligation exists, the plan will be considered an employee-pay-all plan provided such an arrangement was in place at the time contributions to the plan were made. ...

Subco B would not be considered a member of the group because its liability for income taxes in the United States, if any, is unaffected by the group filing. ... As Subco B would not be considered a member of the group for the purposes of subclause 95(2)(a)(ii)(D)(V), the fact that its shares were not excluded property would not cause the interest paid by Holdco to fail to qualify under clause 95(2)(a)(ii)(D) of the Act. ...