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22 March 2018 Internal T.I. 2018-0738201I7- Residency of TFSA trust-- summary under Subsection 146.2(6) Summary Under Tax Topics- Income Tax Act- Section 146.2- Subsection 146.2(6) investment trading decisions by non-resident holder did not make the TFSA trust a non-resident CRA considered that because the trust company trustee of a TFSA, RRSP, RRIF, RESP or RDSP is required under the Act “to maintain and exercise key decision-making powers and responsibilities over the trust” (e.g., ensuring compliance with ITA requirements including monitoring for non-qualified investments and ensuring that all transactions occurred at fair market value), it follows that such trusts will have their central management and control in Canada, so that they “will always be considered resident in Canada.” ...

The interpretation is, perhaps, coloured by the use of this term in paragraph 94.1(1)(b) of the Act where certain properties listed as portfolio investments could be considered properties used in an active business.... In any event, the Department has resisted restricting the term as is done in the CICA Handbook so as to include only passive investments... although in document 900245 we state that loans made by a Canadian corporation in the course of carrying on the business of lending money would not be considered a portfolio investment.... ...

12 March 1996 Internal T.I. 9531287- CONTRIBUTIONS TO RCA'S-- summary under Refundable Tax Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(1)- Refundable Tax Where an employer directly acquires a letter of credit from a bank for the benefit of its employees, it will be considered to have established a retirement compensation arrangement and contributed the letter of credit to it. ... If assets are not specifically pledged as security for the RCA and can be used for other purposes or to satisfy other creditors, such security will not be considered as contributions to the RCA. ...

Repairs or Running Expense Costs incurred, apparently by a purchaser,in connection with the clean-up of environmentally contaminated land (apparently, vacant land) was considered to be on capital account on the basis that they related to the preservation or improvement of a capital asset. Head Office apparently accepted a comment that a distinction should be drawn between this situation and the incurring of reclamation costs that are costs directly attributable to the earnings process and which "are considered to be expense because the business activity that caused the environmental damage was carried on by the same party that incurred the clean-up costs". ...

30 May 2003 Internal T.I. 2003-0000117 F- ALLOCATION AUTOMOBLE VERSÉE-- summary under Subparagraph 20(1)(c)(i) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c)- Subparagraph 20(1)(c)(i) a loan by a partner to the partnership may be treated as a loan rather than a contribution of capital in special circumstances Will interest payments on a loan paid by a partnership to a partner be considered a distribution (reducing the ACB of the partner’s interest) or as income to the partner? After indicating that they generally would be treated as the former, the Directorate stated: [T]here may be special circumstances where such a payment would be considered an expense of the partnership, meaning that the interest would relate to a debt to the partner and not a contribution of capital. ...

5 June 2001 Internal T.I. 2000-0053047- REVERSE REPURCHASE TRANSACTION-- summary under Securities Lending Arrangement Summary Under Tax Topics- Income Tax Act- Section 260- Subsection 260(1)- Securities Lending Arrangement Before going on to indicate that cash transferred by a bank to a customer in exchange for shares transferred to it pursuant to the standard-form of repo agreement did not constitute a loan for purposes of Regulation 404(1)(b), the Agency indicated that the transfer of a qualified security under the terms of the standard agreement would be considered to be an acquisition by the buyer (borrower) for purposes of the Act regardless of the results, for tax purposes, to the seller (lender) as a consequence of the application to it of s. 260. However, "if the agreement is structured in a manner that the incidents of beneficial ownership of the securities remain with the lender the transaction may not be a sale and the cash consideration paid to the lender could in such case be considered a loan made by the borrower to the lender". ...

3 July 2001 Internal T.I. 2001-0078917- PARTNERSHIPS AND OVERDRAFTS PART 1.3-- summary under Subsection 181(3) Summary Under Tax Topics- Income Tax Act- Section 181- Subsection 181(3) "Components that make up the amount shown on the face of the balance sheet, are amounts reflected in the balance sheet for purposes of subsection 181(3) and each component may be considered separately in determining the carrying value of the item to be included in counting capital or the investment allowance. Where the amount on the balance sheet that reflects the corporation's cash/indebtedness position at the end of the year is composed of a number of different bank account balances (both positive and negative), except for those balances for which there is a legal right of offset, it is our view that these balances have simply been aggregated and may be considered separately. ...

8 March 2018 Internal T.I. 2017-0724351I7- Disability tax credit- lab tests as therapy-- summary under Paragraph 118.3(1.1)(d) Summary Under Tax Topics- Income Tax Act- Section 118.3- Subsection 118.3(1.1)- Paragraph 118.3(1.1)(d) appointment time for actual therapy not excluded After effectively accepting Mullings by stating that “the weekly blood tests in this case would likely be considered an activity that would be included in the time spent administering therapy” since the “weekly blood tests were required to ensure that the proper Phe level was being maintained,” the Directorate went on to state:: We note that although the blood tests could be considered time spent administering therapy, any travel time to and from a blood test would be specifically excluded as per paragraph 118.3(1.1)(d) of the Act. ...

Headquarters also noted that for s. 162(7) penalty purposes, “an information return that is missing substantial information will be considered invalid and, therefore, will not be considered to have been filed.” ...

1 June 2021 Internal T.I. 2020-0858471I7 F- Paiement forfaitaire rétroactif admissible-- summary under Subparagraph (a)(i) Summary Under Tax Topics- Income Tax Act- 101-110- Section 110.2- Subsection 110.2(1)- Qualifying Amount- Paragraph (a)- Subparagraph (a)(i) pay equity awards agreed to consensually did not qualify Regarding whether amounts paid in 2019 by the "Employer" to some of its employees as part of a pay equity settlement could be considered "qualifying amounts," the Directorate indicated that only amounts included in income from an office or employment and received pursuant to certain arbitration awards could so qualify, and that amounts of salary adjustments received in the context of pay equity, but which were paid pursuant to the Memorandum of Understanding agreed to between the Employer and the Union, are not considered "qualifying amounts" notwithstanding that the latter amounts were set out in an Annex to an arbitral award. ...