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CRA responded (TaxInterpretations translation): When an annuity contract and a life insurance policy are independent of each other, they will not be considered as one and the same contract…[even] if they were subscribed for with the same insurance company. ...

Response After adverting to the fact that s. 56.4(3)(c)(ii) and s. 56.4(7)(b) refer only to an undertaking not to provide a competitive property or service, CRA stated (Tax Interpretations translation): If the wording of the non-solicitation covenant is considered as an integral part of the non-compete covenant, the non-solicitation covenant would not by itself disqualify the restrictive covenant for the purposes of the exceptions provided in subparagraph 56.4(3)(c)(ii) or subsection 56.4(7). ...

The characteristics considered include whether there is a trade or business in the ordinary sense, goods or services are restricted to members and their guests, the business is operated on a profit basis rather than a cost-recovery basis, and the business is operated in competition with taxable entities carrying on the same trade or business. ...

Under the current wording of the "taxable Canadian property" definition, an amount equal to that same proportion of the FMV of the shares of the Subsidiary will be considered real or immovable property situated in Canada of the Parent in the determination of whether the shares of the Parent derive their value principally from real or immovable property situated in Canada. ...

X(6) of the Canada-US Tax Convention is available to a fiscally transparent LLC that is wholly-owned by US-resident individuals, CRA stated that such Treaty benefits may be claimed by an LLC on behalf of its members with respect to an amount of profit attributable to a Canadian branch only if the amount is considered to be derived, pursuant to Art. ...

If the shares of the Parent would be TCP had the Parent capitalized its wholly-owned Subsidiary with only equity, then such shares will be considered TCP if the Parent capitalizes the Subsidiary in part with equity and in part with debt. ...

. … As a result, for advance ruling requests considered in 2012, we refused to confirm that resigning employees would not be deemed, under section 84.1, to have received a dividend from Buyco on the disposition of their Opco shares. ...

The hypothetical person will be considered to be a specified shareholder of the subsidiary if it holds 10% or more of the issued shares of the subsidiary or of any other corporation that is related to the subsidiary and that has a significant interest in the issued shares of the subsidiary after applying the various presumptions in paragraphs (a) to (e) of that definition. ...

After referring to the position in ITTN no. 44) that "unanimous shareholder agreements are not to be considered in applying paragraph (b) of the definition ‘Canadian-controlled private corporation'" in s. 125(7), CRA stated: The interpretation that the CRA had given to the Duha case in the documents referred to above cannot be reconciled with the interpretation of that case by the Courts in Bagtech. ...

CRA stated: [W]e will generally accept that tax paid to a foreign country will be an income or profits tax notwithstanding that it is computed by reference to gross revenue if the tax is part of a comprehensive income tax regime and is tightly linked and subordinate to a tax that is computed by reference to income or profits….The following factors would be considered indicative…: * a single tax statute contains the option to pay tax on gross income or tax on net income; * there is the ability to elect annually between the two taxation regimes; and * the rate of tax applied on net income is not unreasonably high. ...