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Principal Issues: Whether the land owned by a taxpayer is considered to be "qualified farm property"? ... Some of the criteria which should be considered in making this determination are set out in Interpretation Bulletin IT-322R. Rental income would not be considered to be part of a farming business. ...

As indicated in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, a request for a written opinion on a completed transaction should be considered by the taxpayer's local district office. ... The relevant circumstances include the actual use to which the cash or near cash properties are put in the course of the business, the nature of the business and the practice in the particular business. 2.Cash or near cash property is considered to be used principally in the business if its withdrawal would destabilize the business. 3.Cash which is temporarily surplus to the needs of the business and is invested in short-term income producing investments could be considered to be used in the business. 4.Cash balances which accumulate and are then depleted in accordance with the annual seasonal fluctuations of an ongoing business will generally be considered to be used in the business but a permanent balance in excess of the company's reasonable working capital needs will generally not be considered to be so used. 5.The accumulation of funds in anticipation of the replacement or purchase of capital assets or the repayment of a long-term debt will not generally in itself qualify the funds as being used in the business. 6.Cash or near cash property is considered to be used principally in the business if its retention fulfils a requirement which had to be met in order to do business, such as certificates of deposits required to be maintained by a supplier. 7.The Department recognizes that prudent financial management requires businesses to maintain current assets (including inventories and accounts receivables, as well as cash and near cash properties) in excess of current liabilities and will consider this requirement in assessing whether cash or near cash assets are used principally in a business. In the Department's view, cash and near cash assets held to offset the non-current portion of long term liabilities will not generally be considered to be used in the business. ...

You also ask whether an amount on account of severance pay as required by federal or provincial employment standards legislation is considered a retiring allowance. ... It will be considered employment income. Question 4 You ask us to confirm that an amount paid to a former employee on account of severance pay required under provincial or federal employment standards legislation is considered a retiring allowance. ... We concluded that "severance pay" as provided for under that statute would be considered a retiring allowance. ...

Principal Issues: 1) Can payments to a registered music therapist be considered a payment made to "a medical practioner... in respect of medical services"? ... You have also asked whether or not the expenses of travelling to and from, as well as the fees for, the music therapy sessions can be considered eligible medical expenses. ... XXXXXXXXXX contends that the travelling expenses of both he and his wife to obtain the music therapy services for XXXXXXXXXX should be considered allowable as medical expenses. ...

Reasons FOR POSITION TAKEN: A right to use property (eg., a helicopter or equipment) for a period of time could be considered a property. Therefore, a donation of a right to use a helicopter or equipment for a period of time could be considered a gift in kind. ... A right to use property (eg., a helicopter or equipment) for a period of time could be considered a property and a donation of a right to use a property, depending on the facts in a particular case, could be considered a gift in kind. ...

Principal Issues: Whether the business of lending money can be considered as an active business because the corporation originated the loans from which the interest is received. ... If the income is part of the normal business activity of the corporation, and it is inextricably linked with an active business, it will be considered active business income. ... The licence fees could pertain to the corporation's research and manufacturing business and thereby be considered to be active business income. ...

Reasons: The fact that an activity is not considered a commercial activity under the ETA does not mean that the activity is not carried on in the course of gaining or producing income from a business for purposes of the definition of automobile in subsection 248(1) of the Income Tax Act. ... For purposes of the ETA, certain activities carried on by a business may not be considered a commercial activity (e.g. making an "exempt supply"). As discussed, your concern is whether a van, pick-up truck or similar vehicle that is used in a business activity which is not considered a commercial activity for purposes of the ETA, may still be considered "used... in the course of gaining or producing income" from the business for purposes of determining whether the vehicle is an automobile under the ITA. ...

If a new employment contract is put in place, then the flex credits will not likely be considered salary. ... Generally, if the employees are subject to a collective agreement, the employment contract will be considered to have ended at the expiration of the collective agreement. ... Concerning the unionized employees, the expiration of the collective agreement would likely be considered to be the termination of the employment contract. ...

Principal Issues: Whether the U.S. patronage dividend would be considered to be foreign business income, foreign non-business income or income from an active business carried on in Canada to a Canadian co-operative corporation? ... You requested our opinion on the following: (i) Whether the U.S. patronage allocation should be considered foreign business income, foreign non-business income or active business income earned in Canada; (ii) Whether a foreign tax credit is available if the patronage allocation is considered to be active business income earned in Canada; and (iii) Whether subsection 20(12) of the Act is available if the foreign tax withheld is not eligible for foreign tax credits under section 126 of the Act. ... (iii) If, for purposes of the Act, the patronage allocation would otherwise be considered business income from a business carried on in the U.S. ...

We have considered the arguments raised by XXXXXXXXXX representative that the shares should be considered to be eligible capital property. ... You ask whether a membership in a grazing association that is not a corporation can be considered qualified farm property. ... However, a permit which gives the farmer a right to use the land, with no interest in the land, would not be considered to be real property. ...