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The Department's position on constructive receipt is set out in paragraph 10 of IT-502. 4.Lastly, the proposed transaction may be considered an avoidance transaction as described in subsection 245(3) of the Act. ... The plans would normally be considered either salary deferral arrangements or RCAs but for the exemption provided in paragraph (j) of the respective definitions in subsection 248(1) of the Act. In most cases it is more advantageous for the employee to have a funded arrangement considered an EBP because a deferral of the employer's deduction under section 32.1 of the Act is generally less disruptive to the investment potential of the plan than the requirement to pay 50% refundable tax on contributions. ...

The following factors may be considered in determining if a person was financially dependant on a deceased annuitant for support: a) the income of the person from all sources; b) the cost of living and the ability of the person to provide for self-support; and c) any support provided to the person by other persons. It will be assumed unless the contrary is established that a child or grandchild who is supported by the deceased may be considered financially dependent upon the deceased for support at the time of death if the child/grandchild's income in the year preceding the death of the deceased was less than the basic personal credit in subsection 118(1) of the Act ($6456 for 1994). ... Where the child/grandchild is living with another individual who is providing support for him/her at the time of death, the child/grandchild would not be considered to be financially dependent upon the deceased for support at that time. ...

We note, however, that the Department's position as explained in paragraph 6 of IT-387R2 is that shares which are subject to an escrow agreement so as to prevent the owner thereof from dealing in them are considered to be identical property with shares that are of the same class and kind which are not so restricted. We note further that the representative has apparently not objected to the 11 shares being considered identical properties; rather, he has focused on the interaction of subsections 47(1) and 53(1). ... In considering the reasonableness of this approach, variations of the present scenario were considered. ...

The principle that evolved from the Yates decision was that where a conveyance of residential property takes place in areas in which minimum lot sizes are imposed by municipal bylaws or provincial legislation in force at the time the property is acquired, the minimum residential parcel is considered to be the minimum amount that would be necessary for the use and enjoyment of the residence throughout the period that the property is continuously owned. ... In the latter case, severance restrictions are not considered relevant for the purpose of determining whether the excess land is necessary. ... In connection with the above comments, we have also considered the recent decision rendered by the Federal Court of Appeal (FCA) in the Augart case (a copy of this case has been included for your reference.). ...

In this regard, since we understand that XXXXXXXXXX is in the management consulting business, we have some reservations as to whether XXXXXXXXXX could be considered to have carried on a business with respect to a construction, installation, agricultural or engineering activity. ... In addition, it is our general view that the modification of existing computer software, the creation of additional computer software to complement existing software and the development of new computer support applications, even where performed by professional engineers, is not generally considered to be engineering activities because engineering knowledge is not being used in these activities. Where an employer is primarily engaged under a contract to develop computer software and to integrate such software with existing systems, and who may under such contract agree to install the software and additional hardware systems on site, we do not believe that the employer would be considered to be carrying on a business with respect to an installation activity referred to in clause 122.3(1)(b)(i)(B) of the Act. ...

Rankin (613) 957-8974 Attention: Barry Reid 7-942949 Interest Income- ADJUBI We are writing in reply to your November 7, 1994 request for our opinion on whether interest on overpaid income tax is considered to be Adjusted Business Income ("ADJUBI") for the purpose of the Canadian Manufacturing and Processing Profits ("M & P Profits"). ... Her Majesty the Queen, 86 DTC 6521, the Supreme Court of Canada considered that if the funds were risked and used in an active business and if the funds were withdrawn so that there was a destabilizing effect on the business operations, then the money was integral to the business and interest income related to the funds was income from an active business. ... We also considered the 1990 Federal Court-Trial Division decision, MacMillan Bloedel Limited v. ...

Although, as you are aware, we considered a request XXXXXXXXXX to determine how the Indian Act Exemption for Employment Income Guidelines (the "Guidelines") would apply to their employees, we have reviewed the XXXXXXXXXX and the accompanying documents you forwarded to us, and make the following comments. ... The Guidelines state the general policy as to which status Indian employees are considered by the Department to be exempt from taxation on their employment income. In our view, fact patterns similar to that of the XXXXXXXXXX would not be considered to be unusual or exceptional circumstances. ...

Reasons FOR POSITION TAKEN: Given the manner in which the non-taxable allowance was calculated, we have made the assumption that the employer determined that this amount should be considered non-taxable by virtue of subparagraph 6(1)(b)(vii) of the Act. ... Given the manner in which the non-taxable allowance was calculated, we have made the assumption that the employer determined that this amount should be considered non-taxable by virtue of subparagraph 6(1)(b)(vii) of the Act. ... Accordingly, this amount is included in income by virtue of 6(1)(b) of the Act and would not be considered to be an amount intended to reimburse the taxpayer in the year for specific disbursements for meals and lodging while away from the municipality and metropolitan area for the purposes of paragraph 8(1)(g) of the Act. ...

The trailer would be considered a device acquired in respect of the wheelchair and thus also qualify under the same provision. ... It is relevant to note that the scooter, itself, has been considered as a "wheel chair" for the purpose of the tax credit in circumstances where it is acquired in place of the more conventional type that we are all familiar with. ... This paragraph provides, in part, that amounts paid: "for or in respect of a....wheel chair....for the patient" The question arises whether the trailer, and the cost of its construction, can be considered as being "in respect of" the wheelchair (scooter). ...

Principal Issues: whether surviving spouse may transfer age amount from 70(2) return Position: no Reasons: the statutory requirement that the 70(2) return be filed as if the deceased t/p were "another person" means, in our view, that the "other person" is not considered the "individual's spouse" as referred to in 118.8 January 17, 1996 Individual Returns and Payments HEADQUARTERS Processing Directorate Sandra Short Processing Division (613) 957-8953 J. ... You have considered subsection 4(4) of the Act but have concluded that because the surviving spouse is only transferring one age amount that this section is of no assistance. ... The statutory requirement that the 70(2) return be filed as if the deceased taxpayer were "another person" means, in our view, that the "other person" is not considered the "individual's spouse" as referred to in section 118.8 of the Act. ...