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Principal Issues: Would two individuals that are trustees of two diffenet trusts be considered, as co-trustees, the same person for the purposes of paragraph 256(1.2)(c) of the Act? Position TAKEN: Yes Reasons FOR POSITION TAKEN: If they were not considered the same person then there would not be a need for 256(4) of the Act. 951064 XXXXXXXXXX M.P. ... Since subsection 104(1) of the Act provides that for purposes of the Act a reference to a trust is to be read as a reference to the trustee, it is our view that the co-trustees of the trust are considered to own the shares held by the trust for the purposes of paragraph 256(1.2)(c). ...

Reasons: Surviving corporation is considered a "new" corporation. ... Issue Assuming the conditions of paragraphs 87(8.1)(a) and (b) are satisfied, would the merger of A and B be considered to be a foreign merger within the meaning of subsection 87(8.1)? More specifically, would all of the shares of A and B held by P be considered to have been exchanged for or to have become shares of the capital stock of the merged corporation, within the meaning of paragraph 87(8.1)(c)? ...

Comments We are of the view that redemption fees related to investments held by an RRSP are considered expenses of the RRSP. Consequently, where an issuer provides an incentive in the form of a reimbursement of early redemption fees related to mutual funds held by the RRSP, the reimbursement would be considered income earned by the RRSP in respect of the particular investment. ... In addition, it would not be considered a contribution to the RRSP by or on behalf of the annuitant. ...

Paragraph 5 of Interpretation Bulletin IT-126R dated February 3, 1975 issued by Revenue Canada, Taxation ("IT-126R") indicates that where "there is substantial evidence that the corporation will be dissolved within a short period of time, for the purposes of section 88 the corporation is considered to be wound up." You have asked whether the holding period would be considered "a short period of time" as referred to in paragraph 5 of IT-126R. ... The comments expressed are not advance income tax rulings and are not considered binding on the Department, in respect of any taxpayer, in accordance with paragraph 21 of Information Circular 70-6R2 dated September 28, 1990. ...

Will the shares of the capital stock of a taxable Canadian corporation which are eligible for inclusion in a prescribed stock savings plan, be considered "prescribed property" if those shares are not held by an investor in such a plan? ... It is our opinion that shares of the capital stock of a taxable Canadian corporation which are held by a taxpayer in a stock savings plan prescribed in section 6705 of the Regulations are considered "prescribed property" for the purposes of subsection 231(7) of the Regulations. 2.     It is our opinion that shares of the capital stock of a taxable Canadian corporation which are eligible for inclusion in a prescribed stock savings plan but are not held by a taxpayer in such a plan will not be considered a "prescribed property" for the purposes of subsection 231(7) of the Regulation. ...

Further, in order for an expenditure or transfer of property to be considered a gift, it must be made without conditions, from detached and disinterested generosity, out of affection, respect, or charity or like impulses, and not from the constraining forces of any moral or legal duty. In our view the lottery winner in the situation described above would not be considered to have made a gift for purposes of sections 118.1 or 110.1 of the Act since he had agreed prior to acquiring the lottery ticket that 24(1) would receive the winning prize money. If a gift could be considered to have been made at all, it would be a gift of the chance to win represented by a particular ticket, the value of which would presumably be equal to the lesser of the value of the prize divided by the number of tickets eligible to win and the face value of the ticket. ...

Reasons: Based on jurisprudence and given the facts in the hypothetical situation, it is unlikely that the SIFT would be considered to be carrying on a business in Canada in making the loans to the foreign affiliate and it is unlikely that the loans would be considered to be property used by the SIFT in the course of carrying on a business in Canada. Consequently, it is unlikely that the interest income from the loans would be considered non-portfolio earnings of the SIFT as defined in subsection 197(1). ... It is also unlikely that the loans would be considered property used by the SIFT in the course of carrying on a business in Canada. ...

Are sponsorships provided to students considered taxable income of the student and if so, when would the amount be required to be included in income? ... Are meal allowances paid to employees required to travel on business time considered to be taxable income of the employee? ... However, in our view the per diem amount that XXXXXXXXXX may pay to employees without documentation would be considered reasonable. ...

Is the income earned by a farmer under a FIT / microFIT contract considered farming income? ... Would the income earned by a farmer under items 1 & 2 be considered incidental to farming income? ... When these factors are considered in the context of the FIT / microFIT Programs, it is our view that income under the scenarios described above would not be considered incidental to a farming business. ...

Reasons: (1) The corporation must employ in the business more than 5 full-time employees to avoid being considered a specified investment business. ... You ask whether Newco would be considered to be carrying on a "Specified Investment Business", as defined in subsection 125(7) of the Act, and whether the shares of Newco could be considered "Qualified Small Business Corporation Shares", as defined in subsection 110.6(1) of the Act, under either or both scenarios above. ... In your opinion, Newco would then be considered to carry on an active business, such that it would be eligible for the small business deduction, and its shares would potentially be considered "Qualified Small Business Corporation Shares", as defined in subsection 110.6(1) of the Act, where the other requirements of the definition are met. ...