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As it appears that the transaction in question (i.e. the sale of shares of Parent Co.) has been completed, a request for an advance income tax ruling would not be considered. ... The question to be addressed is whether the building, while under construction, would be considered an asset “used principally in an active business”. ... The issue of whether property was used or held by a corporation in the course of carrying on a business was considered by the Supreme Court in Ensite Limited v. ...

As the corporation's shareholders want to ensure that their shares will at all times qualify as "qualified small business corporation shares", you inquire whether these cash balances would be considered to be assets used principally in an active business. ... 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. ...

In certain factual circumstances, it is considered that "farming" includes raising fish, market gardening and the operation of nurseries and greenhouses. ... Hence, the cultivation of crops in water and hydroponics or the process of growing plants in sand, gravel, or liquid, without soil and with added nutrients, are considered to be farming activities for the purposes of the Act. ... Normally, a taxpayer will be considered to operate two separate businesses if the businesses are not so interlaced, interdependent and interconnected that it is virtually impossible to separate one operation from the other. ...

Principal Issues: If a corporation that owns several apartment buildings is considered an "active business" and the rental income derived from the apartment buildings is considered "income of the corporation for the year from an active business", if one of these properties is disposed of, can it be considered a former business property for purposes of the replacement property rules? ... Further, the rental income derived from the apartment buildings is considered "income of the corporation for the year from an active business", as defined in subsection 125(7) of the Act. In your view, if one of these properties is disposed of, it should be considered a former business property for purposes of the replacement property rules in sections 13 and 44 of the Act because the rental income earned is considered active business income of the corporation. ...

To be considered a replacement for a former property, a particular property must meet all of the requirements outlined in subsection 44(5) of the Act. ... Question 2 Does the newly acquired properties have to be located in Canada to be considered a replacement property for the former business property? ... Of course, each property must meet all of the requirements in subsection 44(5) of the Act to be considered a replacement property. ...

These particular trips are generally considered to be employment-related. ... Accordingly, travel from home to this site would, likely, be considered personal. ... However, notwithstanding the earlier work-related stop, travel home from the office at the end of the day, will still be considered personal. ...

Reasons: Where a gift is subject to a condition precedent that legal title must be transferred to the donee, the condition precedent must be satisfied before the gift can be considered to be completed. Absent the transfer of legal title constituting a condition precedent, a gift is considered to be completed when beneficial ownership of the gifted property is transferred to the donee. ... Accordingly, if the transfer of legal title to the donee is a condition precedent, this condition must be satisfied before the gift can be considered to be completed. ...

In order for interest on any portion of the remaining $1,000 of the loan to be deductible, the application of subsection 20.1(1) needs to be considered. ... (According to the Finance Technical Notes, the two loans are to be considered together.) ... In order for interest on any of the remaining $1,000 of the loan to be deductible, the application of subsection 20.1(1) needs to be considered. ...

Each entity is thereby considered fiscally transparent for United States income tax purposes. USLLC1 and USLLC2 are each considered to be corporations for the purposes of the Act, while the LP Fund is fiscally transparent for the purposes of the Act. The Canadian-resident corporations in which the LP Fund invests are not considered to be fiscally transparent for both Canadian and United States income tax purposes. 8. ...

Whether or not a subscription receipt is considered to be a qualified investment would be a question of fact. ... In your letter to us, you have asked us whether or not subscription receipts that provide the holder with the right to receive a cash settlement in lieu of the underlying property, would be considered a qualified investment. Generally, money and deposits of money will be considered to be a qualified investment provided the money is legal tender in Canada. ...