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The CRA’s Folio S3-F6-C1 “Interest deductibility”, states that an amount is considered to be interest if, in general terms: (a) it represents compensation for the use of money; (b) it is referable to a principle sum; and (c) it accrues day-to-day. ... We also considered subsection 214(15) of the Act which provides: “For the purposes of this Part, (a) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to guarantee the repayment, in whole or in part, of the principal amount of a bond, debenture, bill, note, mortgage, hypothecary claim or similar obligation of a person resident in Canada, any amount paid or credited as consideration for the guarantee is deemed to be a payment of interest on that obligation; and (b) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to lend money, or to make money available, to a person resident in Canada, any amount paid or credited as consideration for so agreeing to lend money or to make money available shall, if the non-resident person would be liable to tax under this Part in respect of interest payable on any obligation issued under the terms of the agreement on the date it was entered into, be deemed to be a payment of interest.” ...

However, the right to reduce the Interest Debt would be considered a "right to reduce" since it may reasonably be concluded at the end of XXXXXXXXXX, having regard to the circumstances, that the right to reduce would become exercisable. ... Thus, a right may be considered a “right to reduce,” if it is reasonable to conclude, having regard to all the circumstances, that the right will become “capable of being made effective in action” or “capable of being implemented.” ...

To do so, the Tax Court considered the meaning of a "partnership" for purposes of the Act. ... Conclusion The Submission reiterates the arguments previously considered and raises numerous hypothetical questions. ...

Towards the middle of paragraph 15 in IT-479R, it is stated "Further, the gains and losses made by a corporation whose prime activity is trading in securities will be considered to be on income account, notwithstanding that the corporation does not hold itself out to the public as a trader or dealer in securities. ... It is our opinion that XXXXXXXXXX's recommendation that the redemption of the unit or units, in whole or in part, representing "seed capital" be considered to be on account of income has merit and should be pursued. ...

D, immediate family members, and therefore these persons are considered to have been dealing at non-arm's length with each other. ... In accordance with the comments in paragraph 5 of IT-239R2, if a debt bears interest at a reasonable rate, the debt will generally be considered to be acquired for the purpose of gaining or producing income. ...

In particular, we considered whether a confidentiality clause would preclude a taxpayer from making an election under paragraph 56.4(3). ... Calculation Valuation prepared by XXXXXXXXXX. 16 Subsections 56.4(3); 56.4(6); and 56.4(7) contain the RC rules exceptions. 17 Also summarized from HQ Audit’s memorandum and from a letter from the Taxpayer’s lawyer XXXXXXXXXX. 18 XXXXXXXXXX. 19 Whether the Purchaser is considered to be arm’s length with the Shareholders remains a question of fact and this determination is beyond the scope of our review. 20 This is the TSO Auditor’s view. 21 XXXXXXXXXX. 22 XXXXXXXXXX. ...

It is our view of the modern rule that the particular context of the relevant words must also be considered. ... However, these cases generally appear to extend the meaning relative to the amount of land to be considered, i.e., immoveable property. ...

The issue as to when the certificate required under paragraph 118.2(2)(e) of the Act must be issued was considered in Kushnir et al. v. ... While behavioral problems and emotional disturbances of the type often experienced by children is not considered a mental handicap, an emotional disorder that is severe enough to warrant placement in a psychiatric facility may well qualify as a mental handicap. ...

Therefore, in order for a bank’s financial statements to be considered “accepted” by OSFI, there is the general presumption that the bank has complied with the provisions of the Bank Act that are relevant to financial statements. 2. ... Accordingly, it is our view that in order to be considered accepted by OSFI, the Bank must have complied with the provisions of the Bank Act that are relevant to the financial statements, including subsection 332(3) of the Bank Act. 2. ...

We have also considered the comments made by the taxpayer’s representative, XXXXXXXXXX, in his letters of January 20, April 9 and May 13, 1998 (a copy of the May 13, 1998 letter to us is attached). ... In summary, with respect to any travel undertaken by the officers which is disallowed as an expense to the Corporation, the value of such travel is unlikely to be considered a taxable benefit unless a personal element to the travel is established. ...