Search - considered

If the primary purpose of the award is to carry out research for its own sake (for example, to further knowledge in a particular field by discovering new facts, or by reinterpreting existing knowledge), the award is considered to be a research grant and would be included in the recipient's income under paragraph 56(1)(o) of the Income Tax Act (the "Act"). ... It may be that the recipient's education and training is also furthered by such research, but such a factor does not alter the primary purpose of the grant (i.e., its character does not change), provided the educational or training benefit could be considered to be a secondary purpose of the grant or an inevitable but incidental benefit. ... It is understood that research might be conducted in pursuing this goal, but unless research is the primary objective, this would not preclude the amount from being considered a scholarship or fellowship for purposes of subparagraph 56(1)(n)(i) of the Act. ...

In regards to the application of paragraph 56(1)(n) of the Act, the nature of the income is determined on a case-by-case basis, however, in the case of a PDF, income is generally considered to be employment income or research grants (i.e., paragraph 56(1)(n) usually will not apply). Even if some of a PDF's income is considered to be scholarship income, the PDF will likely only qualify for a $500 exemption. ... Even if an amount received by a PDF is considered to be scholarship income (i.e., paragraph 56(1)(n) income) and the PDF is entitled to an education tax credit, the PDF still will not qualify for the full scholarship exemption unless the amount is connected to the particular educational program for which the education tax credit is claimed. ...

23 March 2009 Internal T.I. 2008-0304441I7- Gain on shares- Canada-Israel Tax Convention Unedited CRA Tags Article XIII(3) Canada-Israel tax treaty Article XIII(4) Canada-Israel tax treaty Principal Issues: Are the shares of Canholdco held by its Israeli parent considered to be property that consists primarily of immovable property situated in Canada such that Article XIII(3) of the Canada-Israel tax treaty applies? ... Reasons: We maintain our previous position that when the expression "consist of" is used without the words "directly or indirectly", only the assets held directly by the parent will be considered. ... Question Are the shares of the Canholdco held by its Israeli parent considered to be property that consists primarily of immovable property situated in Canada such that Article XIII(3) of the Treaty applies or whether Article XIII(4) of the Treaty applies to exempt the capital gain from Canadian income tax? ...

To be included in income under paragraph 56(1)(u) of the Act, the payment must first be considered social assistance. ... However, in our view, the assistance of the nature that you described (i.e., assistance provided directly by individuals to other individuals) would likely not be considered social assistance for purposes of paragraph 56(1)(u) of the Act. Therefore, if an amount is not considered social assistance for purposes of paragraph 56(1)(u) of the Act, then the amount does not have to be reported on a T5007 and is not included in the recipient’s income under paragraph 56(1)(u) of the Act. ...

A recreational activity would not be considered an "occupation" for purposes of section 118.5 of the Act. ... However, as a knowledge of English or French is generally necessary to obtain employment in Canada, English or French can be considered a "skill in an occupation", based on the expanded definition of "occupation" described above. Consequently, English or French second-language training can be considered to provide an individual with skills in an occupation. ...

The Compensation Payments made by the FA in XXXXXXXXXX can, in part, reasonably be considered to be in respect of a loss of another corporation and such loss is not a foreign accrual property loss. ... Additionally, draft Regulation 5907(1.4) stipulates that such compensatory payments are not prescribed to be FAT under Regulation 5907(1.3) if the amount paid can reasonably be considered to be in respect of a loss of any other corporation and such a loss would not be a "foreign accrual property loss" of the other corporation. ... The Compensation Payments described above relate to a taxation year of the FA that began prior to December 1999 and consequently, provided they otherwise meet the requirements of Regulation 5907(1.3), will be considered FAT regardless of when they are paid. ...

You query whether such a Cyprus LLC would be considered to be a resident of Cyprus such that the Cyprus LLC would be entitled to the benefits provided under the Treaty. Our Comments Article 4 of the Treaty provides that a Cyprus LLC will be considered to be a "resident of Cyprus" if, under the laws of Cyprus, it is liable to tax in Cyprus by reason of its "domicile, residence, place of management or any other criterion of a similar nature". ... Conclusion Where it is determined that a Cyprus LLC is a "resident" of Cyprus under Cyprus tax law, i.e. management and control of the company is exercised in Cyprus, such that the Cyprus LLC is liable to the comprehensive 10% corporate tax imposed by Cyprus on its worldwide income, other than the income earned by certain PE's, it is our view that the Cyprus LLC will be considered to be a resident of Cyprus for purposes of Article 4 the Treaty. ...

19 October 2006 Internal T.I. 2006-0204151I7- Scholarship versus research grant Unedited CRA Tags 56(1)(n) 56(1)(o) Principal Issues: Whether a fellowship can be considered a research grant such that it would be included in income under paragraph 56(1)(o) Position: No. ... There was also a letter from the University dated XXXXXXXXXX (the "Offer"), the subject line of which was entitled an "Offer of Employment as Postdoctoral Fellow", which stated that "Postdoctoral Fellows are generally regarded as research apprentices and are considered by the Canada Customs and Revenue Agency to be self employed... ... Your views You feel that the Taxpayer's assertion that the Fellowships should be considered research grants within the meaning of paragraph 56(1)(o) of the Income Tax Act may have merit. ...

However, a depreciable property is not considered to have been acquired until a capital cost has been incurred in respect of that property. ... A tenant who has acquired an assignment of a leased property or a part of a leased property, or a sublease on a leased property, is considered to have acquired a leasehold interest. ... Therefore, it is our view, based on the information available, that the purchase price paid by the taxpayer could be considered to be in respect of leasehold interests, and not eligible capital property. ...

The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization. ... Where an organization, which would otherwise not be considered to be resident on a reserve, is asserting that it satisfies the definition because it holds its board of directors meetings on a reserve, it should generally be considered to satisfy the definition where management and control over the organization is legitimately exercised during those meetings. ...