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10 June 1996 External T.I. 9611135- LOSS OF SOURCE INTEREST DEDUCTIBILITY-- summary under Subsection 20.1(1) Summary Under Tax Topics- Income Tax Act- Section 20.1- Subsection 20.1(1) Where a partnership is dissolved and the partners receive real property from the partnership in satisfaction of their partnership interests, and the adjusted cost base of the partnership interests at the date of dissolution of the partnership and the fair market value of the property received in satisfaction of the partnership interests is less than the original cost of the partnership interests, the decrease in the adjusted cost base of the partnership interests would not be considered to be lost because of a decline in value of property for purposes of s. 20.1 if such decrease is attributable to drawdowns by the partners of capital from the partnership, given that the borrowed money used initially to acquire the partnership interests thus would be traceable to an ineligible use. ...

6 January 1997 External T.I. 9640845- TRUST AND ARM'S LENGTH DEALINGS-- summary under Paragraph 251(1)(c) Summary Under Tax Topics- Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) 2 trusts not necessarily NAL if they share a common trust company as trustee In response to a query as to whether two trusts are considered to be dealing at arm's length notwithstanding that they have the same public company as trustee. ...

RC considered that this interpretation would result in the term "immediately after the disposition" be equivalent to "at the end of the series of transactions or events". ...

"Although the shareholders could not have formed the intention to file the capital gains election at the time the decision was made to enter into a reorganization, nevertheless, if they had formed the intention to dispose of their shares at that time, the reorganization and the filing of the capital gains election could be considered to form part of the same series of transactions and events. ...

Where an employee undertakes a course of studies as a means of enhancing his chances of a promotion in the short term or enhancing his overall career opportunities in the long term, then the primary benefit is considered to be derived by the employee even though the employer may also benefit from the employee's higher level of education". ...

24 April 1995 External T.I. 9504865- EXCHANGES OF PROPERTY-- summary under Subsection 44(1) Summary Under Tax Topics- Income Tax Act- Section 44- Subsection 44(1) A shareholder whose shares are acquired pursuant to s. 188 of the Business Corporations Act (Ontario) will be considered to have received his sale proceeds either as compensation for property taken under statutory authority or as the sale price of property sold to a person by whom notice of an intention to take it under statutory authority was given. ...

Where it is impossible to trace which part of the funds in the RRSP is reasonably attributable to contributions to the RRSP or income on these contributions, the Department is prepared to accept that an amount of money not exceeding the total contributions by the particular individual to the RRSP be considered contributions to the RRSP for the purposes of the definition of qualified trust... ...

In a situation where it could be established that the licensing income is related to an active business carried on by the recipient corporation or the recipient corporation is in the business of dealing in or originating the property from which the licensing income is received, such income could be considered to be income from an active business. ...

[W]here the use of the tennis courts and weight/exercise room and all other services are available to members in consideration for membership fees and per use charges, the corporation would generally be considered to be carrying on an active business. ...

17 July 1995 External T.I. 9505095- MEANING OF "BECAUSE OF A BEQUEST OR INHERITANCE"-- summary under Paragraph 88(1)(d.2) Summary Under Tax Topics- Income Tax Act- Section 88- Subsection 88(1)- Paragraph 88(1)(d.2) Where the shares of a Canadian corporation are held by the estate of the deceased shareholder until probate, then distributed to the beneficiary, who then transfers the shares to a holding company which then winds up the Canadian corporation, the acquisition of the shares of the Canadian corporation by the beneficiary from the estate will be considered to be an acquisition "because of a bequest or inheritance". ...