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.-- summary under Subsection 1102(23) Summary Under Tax Topics- Income Tax Regulations- Regulation 1102- Subsection 1102(23) further work on an addition does not fall into a separate class CRA considered that if there are two separate additions to a pre-2007 non-residential building, an election under Reg. 1101(5b.1) must be made on each separately and each addition will fall into a separate class – whereas if the work on a single addition extends over more than one year (or there is a subsequent second addition to further extend the first addition), the election can be made at the end of the first year with respect to the work done to date (although this might have no immediate impact under the available-for-use rules) and the subsequent work will fall into the same separate deemed new class without any need to make a second election. ...

CRA responded: As ASPE partially replaced former Canadian GAAP, the reference to GAAP in subparagraph 181(3)(b)(i) is considered a reference to ASPE. … [I]f an entity adopts ASPE, the term retained earnings for the purposes of paragraph 181.2(3)(a) will be defined in accordance with ASPE. … [T]he adjustment to the retained earnings of the corporation as a result of the revaluation of its assets will be taken into account for the purposes of paragraph 181.2(3)(a) to the extent that the presentation of such adjustment conforms with ASPE. ...

However, CRA considered that this is not the case given inter alia that the capital portion does not represent a deduction for the cost of the annuity that is available when the annuity is acquired, so that each annuity payment is subject to Part XIII tax. ...

CRA responded: [T]he request to adjust the tax payable for Year 2 by changing the opening inventory balance can reasonably be considered to relate to the change in the "balance" of the taxpayer in Year 1. ...

CRA noted (citing Harel) that “the payment of a lump sum to cover the balance of unused sick leave accumulated over the years can be considered a retirement allowance” – but, here, the sick leave payouts likely were employment income given that “the payment of the balance of such leave is made annually in accordance with an employment agreement.” ...

In finding that s. 56(4.1) would be unlikely to apply, CRA stated: [T]he intention test in paragraph 56(4.1)(b) requires that it can reasonably be considered that one of the main reasons for making the loan was to reduce or avoid tax by causing income from the loaned property, or property substituted therefor, whose acquisition the loan enabled or assisted, to be included in the income of another individual (other than a trust). ...

The latter were considered to fail to meet this definition. CRA then stated: Moreover, it is our view that the placer nephrite deposits on the Property do not qualify as a mineral resource pursuant to the definition of this term in subsection 248(1) of the Act. ...

3 June 2009 External T.I. 2009-0319551E5 F- Déductibilité des dépenses-- summary under Business Source/Reasonable Expectation of Profit Summary Under Tax Topics- Income Tax Act- Section 3- Paragraph 3(a)- Business Source/Reasonable Expectation of Profit test for identifying a business source Before indicating that there were insufficient details regarding a question on expense deductibility to give a specific response, CRA gave an overview of the tests for expense deductibility, including the identification of a source of income, and stated in this regard: Where the nature of the taxpayer's business has a personal aspect, the business will only be considered a source of income if it is carried on in a sufficiently commercial manner. ...

If there was a resulting contribution to the RRSP, “the proceeds of disposition and the amount of premium considered to be paid are equal to the fair market value of the property transferred or contributed by the taxpayer at the time of its disposition.” ...

15 September 2017 External T.I. 2017-0722391E5- Investment management fees-- summary under Subparagraph (b)(i) Summary Under Tax Topics- Income Tax Act- Section 207.01- Subsection 207.01(1)- Advantage- Paragraph (b)- Subparagraph (b)(i) effective date for 100% advantage tax arising where RRSP or TFSA fees are paid by the annuitant or holder is extended to 2019 In 29 November 2016 CTF Roundtable Q. 5, 2016-0670801C6, CRA indicated that the payment of fees for investment management of an RRSP, RRIF or TFSA by the plan annuitant or holder typically will now be considered to be an “advantage” for Part XI.01 purposes (i.e., giving rise to a tax equal to 100% of the fee amount) but that to give the investment industry time to make the required system changes, it would defer applying this new position until January 1, 2018. ...