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4 February 1994 External T.I. 9325245 F- Small Business Corp-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation Assets used principally in the active business of a limited partnership will be considered to be used in an active business by the corporate general partner of the limited partnership to the extent of its interest therein. In applying the look-through approach to a partnership interest, it is the fair market value of the proportionate interest in the assets of the partnership which is considered to be the fair market value of the assets of the corporate partner, rather than the fair market value of the partnership interest. ...

31 March 1995 External T.I. 9501215- SMALL BUSINESS CORPORATION- XXXXXXXXXX-- summary under Specified Investment Business Summary Under Tax Topics- Income Tax Act- Section 125- Subsection 125(7)- Specified Investment Business motel but not trailer campsite a non-property business "It is our opinion that normally a full-service motel operation would be providing a sufficient level of services such that it would not be considered to constitute a business whose principal purpose is to derive income from property. With respect to the campsites for trailers and campers, we have previously taken the position with respect to a corporation having less than six full-time employees, operating a trailer court and offering no more than normal services such as grounds maintenance and snow removal, that it would be considered to be conducting a specified investment business. ...

31 March 1995 External T.I. 9501215- SMALL BUSINESS CORPORATION- XXXXXXXXXX-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation "It is our opinion that normally a full-service motel operation would be providing a sufficient level of services such that it would not be considered to constitute a business whose principal purpose is to derive income from property. With respect to the campsites for trailers and campers, we have previously taken the position with respect to a corporation having less than six full-time employees, operating a trailer court and offering no more than normal services such as grounds maintenance and snow removal, that it would be considered to be conducting a specified investment business" ...

6 July 1995 External T.I. 9316465 F- Payment to Dissenting Shareholders on Amalgamation-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) In response to a proposal that a payment be made to a separated wife of a husband by her dissenting to the amalgamation of a corporation controlled by her husband and in which he had a minority interest with another corporation wholly-owned by her husband, RC stated that "where a payment to a shareholder pursuant to his/her right of dissent arises as a result of transactions the primary purpose of which is to realize a distribution of corporate surplus that is taxed as a capital gain rather than a dividend and the capital gains are taxed at a lower rate, it is our view that it would constitute an avoidance transaction and subsection 245(2) would be applicable unless it is not considered to result in an abuse.... Transactions contrived to avoid the application of section 84.1 would be considered to result in an abuse for the purposes of subsection 245(4) of the Act". ...

6 July 1995 External T.I. 9316465 F- Payment to Dissenting Shareholders on Amalgamation-- summary under Subsection 84(3) Summary Under Tax Topics- Income Tax Act- Section 84- Subsection 84(3) In response to a proposal that a payment be made to a separated wife of a husband by her dissenting to the amalgamation of a corporation controlled by her husband and in which he had a minority interest with another corporation wholly-owned by her husband, RC stated that "where a payment to a shareholder pursuant to his/her right of dissent arises as a result of transactions the primary purpose of which is to realize a distribution of corporate surplus that is taxed as a capital gain rather than a dividend and the capital gains are taxed at a lower rate, it is our view that it would constitute an avoidance transaction and subsection 245(2) would be applicable unless it is not considered to result in an abuse.... Transactions contrived to avoid the application of section 84.1 would be considered to result in an abuse for the purposes of subsection 245(4) of the Act". ...

26 July 1995 External T.I. 9514695- ACTIVE BUSINESS ASSETS- SECURITY FOR LOAN-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation "Where a financing arrangement that is fundamental to the business operations requires certain security to be maintained and it is reasonable to conclude from the facts that the security is employed and at risk in the business, the security may be considered to be used in the business.... ... In our view, the employment of marketable securities merely as collateral is not generally sufficient to enable it to be considered to be used in a business" ...

23 April 2004 External T.I. 2004-0057231E5- Premium Deductible under 146(5)-- summary under Premium Summary Under Tax Topics- Income Tax Act- Section 146- Subsection 146(1)- Premium mortgage payments made by the annuitant to the annuitant’s RRSP were not premiums CRA noted that, subject to the specified exceptions:,,, where an annuitant makes a payment to his or her RRSP trust as a contribution under the trust to be applied for the purpose of providing the annuitant with a "retirement income" (as defined in subsection 146(1) of the Act) on maturity, the payment is considered a payment of a "premium" as defined in subsection 146(1) …. ... These payments are considered to be mortgage payments pursuant to the mortgage entered into between you and the RRSP and not premiums to an RRSP... ...

25 February 2002 External T.I. 2000-0046485 F- Majoration et Immobilisation-- summary under Paragraph 251(1)(c) Summary Under Tax Topics- Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) co-operative use of s. 88(1)(d) bump by targets and purchasers could entail acting in concert Planning to equalize assets of two target corporations (Aco and Bco) in connection with their sale to two purchasers (HoldcoA and HoldcoB)- which entailed a preliminary s. 85(1) rollover of equaling property by Aco and Bco, followed by the purchase of Aco by HoldcoA, and Aco’s s. 88(1) wind-up into HoldcoA to bump the preferred shares received on such s. 85(1) rollover, followed by a sale of the bumped shares by HoldcoA to HoldcoB – was considered to likely entail all the parties acting in concert so that they could not be considered to be dealing at arm’s length. ...

CCRA responded: [T]he transferor of the property will therefore be considered, under paragraph 248(3)(f), to have beneficial ownership of the property immediately before its transfer to the trust. Since he is a beneficiary of the trust, the transferor will also be considered to have beneficial ownership of the property after its transfer, pursuant to paragraph 248(3)(f) and subsection 248(25). ...

29 July 2002 External T.I. 2001-007075A F- DEPLACEMENT- TRAVAILLEUR FORESTIER-- summary under Paragraph 8(1)(h.1) Summary Under Tax Topics- Income Tax Act- Section 8- Subsection 8(1)- Paragraph 8(1)(h.1) travel between home and forestry camp, but not between forestry camp and cutting sites, generally was personal Travel of forestry employees from their residences to forestry camps was considered to be of a personal nature whereas travel between the forestry camps and cutting or planting sites was considered to be in the course of employment. ...