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14 March 2014 Internal T.I. 2013-0499141I7- IRC 338(h)(10), "earnings" and safe income-- summary under Earnings Summary Under Tax Topics- Income Tax Regulations- Regulation 5907- Subsection 5907(1)- Earnings "notional" deduction arising from Code s. 338(h)(10) step-up excluded After the Directorate found (at para. 232) that the earnings amounts of "US-Opco" foreign affiliates should be calculated similarly to what would have been calculated if the U.S. tax basis of their assets had not been stepped up under IRC 338(h)(10), so that where US-Opco goodwill, for which no actual expenditure had been, had been amortized, the amortization taken on the stepped-up tax basis under IRC 338(h)(10) should be added to the earnings amount pursuant to Reg. 5907(2)(f), the Directorate noted that, in the alternative, the amortization amount should not be considered in computing the earnings amount determined under s. ...

.”; taxi service for bus drivers who work early in the morning or late at night, outside of normal transit service hours give rise to a taxable benefit since “travel between an employee's home and the employee’s workplace is generally considered to be a personal trip.” ...

This portion is probably the full amount paid by the employer since the expense is considered personal. ...

After noting that "generating electricity from a "wind farm" does not meet the definition of 'farming' in subsection 248(1)," CRA stated: [W]hether or not the income from… the other activities can be included in the taxpayer's farming income generally depends on whether the other activities are considered to be incidental to the taxpayer's farming operations, or are, in fact, a separate business. … The expression "incidental" implies a subordinate relationship or "having a minor role in relation to". ...

After noting that under the OECD commentaries there was no intended difference between the fixed base and permanent establishment concepts, and referring to its statement in Income Tax Technical News No. 22 that, after Dudney, it did not propose to litigate another case based on the taxpayer's use of space within the premises of another person unless the taxpayer had more physical control of the space, CRA stated: In the absence of facts that could otherwise be significantly distinguished from those considered in the Dudney case, we are unable to support a conclusion that a permanent establishment in Canada existed to the non-resident taxpayer in the case presented. ...

After noting that under the OECD commentaries there was no intended difference between the fixed base and permanent establishment concepts, and referring to its statement in Income Tax Technical News No. 22 that, after Dudney, it did not propose to litigate another case based on the taxpayer's use of space within the premises of another person unless the taxpayer had more physical control of the space, CRA stated: In the absence of facts that could otherwise be significantly distinguished from those considered in the Dudney case, we are unable to support a conclusion that a permanent establishment in Canada existed to the non-resident taxpayer in the case presented. ...

18 February 2013 Internal T.I. 2013-0477821I7 F- Montants forfaitaires- XXXXXXXXXX-- summary under Section 3 Summary Under Tax Topics- Income Tax Act- Section 3 damages received in wage discrimination suit for pain and suffering were non-taxable In discussing the treatment of lump sums paid to federal employees following a finding by the Human Rights Tribunal that a discriminatory practice had been committed at their workplace and pursuant to a settlement agreement concluded with the Treasury Board, CRA first stated that if the amounts “represent compensation for loss of salary, they constitute income from an office or employment,” and then stated: [W]ith respect to the amount … for pain and suffering under paragraph 53(2)(e) of the Canadian Human Rights Act … this amount qualifies as general damages received in connection with a human rights violation and may therefore be considered to be unrelated to the employment of the Workers. ...

6 March 2015 Internal T.I. 2014-0549761I7- Internally generated goodwill & excluded property-- summary under Subsection 149(10) Summary Under Tax Topics- Income Tax Act- Section 149- Subsection 149(10) unpurchased goodwill is taken into account Before going on to indicate that internally generated goodwill is considered in determining whether shares of a foreign affiliate of a corporation resident in Canada qualify as "excluded property" of another foreign affiliate of the corporation, CRA noted that in 9319777 and in 2002-0126653 "this Directorate took the position that internally generated goodwill was property of the taxpayer immediately prior to the transition time such that it was deemed to be disposed of, and reacquired, by the taxpayer for an amount equal to its fair market value. ...

6 March 2015 Internal T.I. 2014-0549761I7- Internally generated goodwill & excluded property-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation unpurchased goodwill is taken into account Before going on to indicate that internally generated goodwill is considered in determining whether shares of a foreign affiliate of a corporation resident in Canada qualify as "excluded property" of another foreign affiliate of the corporation, CRA stated: [T]he "all or substantially all" test will normally be satisfied if assets representing at least 90 percent of the fair market value of the assets of the corporation are used in an active business carried on by it. ...

18 June 2014 Internal T.I. 2014-0534541I7- PLOI Elections-- summary under Subsection 15(2.11) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(2.11) deadline where multiple CRIC members of partnership Blanket election Although a taxpayer may file a single written communication containing a PLOI election for various particular amounts owing, that single communication is considered to constitute one election per particular amount owing. ...