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Would a tax avoidance arrangement generally be considered a misrepresentation? ...

Although royalty income is generally considered to be income from property, such income will be considered to be income from an active business where it can be established that the income was related to an active business carried on by the recipient taxpayer in the year, or the recipient taxpayer is, in the year, in the business of originating property from which the royalties are received. If a taxpayer is in the business of composing music, the income earned by the taxpayer respecting the copyrighted music will generally be considered to be active business income. ... If the principal purpose of a corporation’s business is to derive income from property such as interest or rental income, and the business does not employ more than five full-time employees, and none of the other exceptions apply, then the income will be considered to be an income from a specified investment business. ...

8 December 2009 TEI Roundtable Q. 4, 2009-0347701C6- Qualifying person & multiple shares-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A The correspondent noted that in Canada, if each class of shares of a public company with multiple classes must be considered separately for purposes of satisfying the de minimis or 10-percent tests in the U.S. tax regulations (treated as being applicable for Canadian purposes under para. 2(c) of the "qualifying person definition) very few Canadian corporations with multiple classes of voting shares will be considered "qualifying persons" for purposes of the LOB clause. CRA stated: …each class of shares must be considered separately for the purposes of satisfying the de minimis and the 10 percent test. ...

What are CRA’s views of what is an habitual abode of an individual and what factors are considered? CRA indicated that length of stays, and the nature of the activities, of the individual in each jurisdiction would have to be considered, to determine whether the individual usually lives in one state as compared to the other, and that the relevance of particular lengths of time would need to be considered in the circumstances: no set periods of time were applied as tests. ...

Y would be considered to arise directly or indirectly from a related business (the former Opco business) in respect of Ms. ... However, the dividend would not be considered to arise, directly or indirectly, from a related business in respect of Ms. ... Y from Investco would not be considered to be derived directly or indirectly from a related business in respect of Ms. ...

Z be considered to be derived directly or indirectly from an “excluded business” of Ms. ... CRA has considered that property received from an inter vivos trust, the terms of which unconditionally require that it distribute the property to the individual on the death of another person, can be considered as property acquired as a consequence of that person’s death. ... Z’s Investco common shares will be considered as property that was acquired her as a consequence of the death of another person, so that s. 120.4(1.1)(b)(ii) will deem Ms. ...

CRA elaborated on this position in the context of a graduated rate estate, indicating that: This position only applies “where the only reason that an amount of income is not payable to the beneficiaries is that it was earned in the initial 12 months of the estate” and does not apply where the income is not considered by CRA to be payable to the beneficiaries under the terms of the will. However, regarding the terms of the will, CRA is prepared to accept that, where the will does not specify which assets the bequests are to be paid from, “the residue of the Estate can include income” so that the income of the estate can be considered to be payable to the beneficiaries for ss. 104(6) and (23) deduction purposes. The quoted position allowing income in the executor’s year to be considered as payable to the beneficiaries only if they all so agree applies only where the estate has not been wound up in the executor’s year such that the estate administration continues beyond the first year (otherwise, the income would in fact have been payable in that year). ...

Is a motor vehicle allowance considered to be reasonable if it satisfies the amounts set by the Treasury Board of Canada Secretariat (“TBCS”) to be reasonable, if all other ITA requirements are met? CRA responded: No direction has been given to CRA auditors that allowances for the use of a motor vehicle exceeding the limits set out in ITR section 7306 will be systematically considered unreasonable for the purposes of ITA paragraph 6(1)(b). ... Depending on the particular circumstances of each situation, a rate that differs from that provided for in that section could therefore be considered reasonable. ...

Is the deceased's estate considered to be a contributor to the child's trust or is the only contributor the deceased himself? ... Accordingly, the deceased's estate will be considered to be a contributor to the child's trust. ... Therefore, in the given instance, the deceased is also considered to be a contributor to the child's trust. ...

In general…deferred tax is not considered as property of the enterprise because it is not receivable (or payable). …[D]eferred taxes are not considered in the determination of FMV in the context of a butterfly distribution…as well as in a rollover under subsection 85(1). ... In the situation provided, the CRA would not accept the deferred taxes respecting the assets held by the corporation being considered in the determination of the FMV of the shares of the corporation. ...