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10 January 1992 CGA Roundtable, Q. 19, 7-912224-- summary under Paragraph 69(1)(a) Summary Under Tax Topics- Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(a) FMV of debt rather than amount owing Where shares are issued by a corporation on the conversion of debt owed by the corporation to a non-arm's length shareholder, the value of the debt rather than its principal amount must be considered as the amount paid to acquire the shares when determining whether the cost of the shares is limited by s. 69(1)(a). ...

.- Q.24-- summary under Subsection 81(2) Summary Under Tax Topics- Income Tax Act- Section 81- Subsection 81(2) Any allowances received by a member of a legislative assembly (or by an municipal officer) that reimburse her for expenses considered to be personal in nature will be required to be included in her income. ...

IT-338R "Partnership Interests- Effects on Adjusted Cost Base Resulting from the Admission or Retirement of a Partner"-- summary under Subparagraph 53(1)(e)(iv) Summary Under Tax Topics- Income Tax Act- Section 53- Subsection 53(1)- Paragraph 53(1)(e)- Subparagraph 53(1)(e)(iv) Where on a dissolution of a partnership to which s. 98(5) applies the continuing partner has assumed the liabilities of the partnership, that partner is considered to have made a contribution of capital to the partnership, with the result that the ACB of his interest would be increased pursuant to s. 53(1)(e)(iv). ...

The contribution of capital to the partnership in consideration for a partnership interest would not be considered to have been done in the course of the partnership's activities. ...

Repairs or Running Expense If a particular software program is only restored to its original condition so that it performs the same applications but the problems of the millennium bug have been eliminated, the expenditures incurred to eliminate the bug would normally be considered to be of a current nature". ...

26 November 1992 Memorandum (Tax Window, No. 27, p. 13, ¶2351)-- summary under Paragraph 55(3)(b) Summary Under Tax Topics- Income Tax Act- Section 55- Subsection 55(3)- Paragraph 55(3)(b) RC's position that property received by a corporation on a winding-up of a partnership prior to the butterfly reorganization will not nullify the application of s. 55(3)(b) is not considered to be inconsistent with its position that a foreign corporation whose shares are owned by a corporate partnership is a foreign affiliate of the partnership and not of the corporate partners. ...

November 1991 Memorandum (Tax Window, No. 13, p. 14, ¶1584)-- summary under Income of the Corporation for the Year From an Active Business Summary Under Tax Topics- Income Tax Act- Section 125- Subsection 125(7)- Income of the Corporation for the Year From an Active Business Funds which a CCPC raises by issuing flow-through shares which require the funds to be expended within 24 months on CEE, etc. will be considered to be used in an active business while invested in short-term deposits. ...

Income Tax Technical News, No. 9, 10 February 1997-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) loss transfer must be to affiliated person- related not enough As a result of an amendment to s. 69(11), "a series of transactions that results in the transfer of the benefit of the losses, deductions or other amounts from one corporation to a corporation with which it is not affiliated will generally be considered to result in an abuse.... ...

7 February 1992 Memorandum (Tax Window, No. 16, p. 14, ¶1737)-- summary under Paragraph 60(j.1) Summary Under Tax Topics- Income Tax Act- Section 60- Paragraph 60(j.1) Where an individual worked for Oldco for a number of years, Oldco then went out of business and was wound up and the individual then formed Newco which was in the same business as Oldco, Oldco would not be considered to be related to Newco for purposes of s. 60(j.1). ...

.- Q.82-- summary under Section 67 Summary Under Tax Topics- Income Tax Act- Section 67 Remuneration from a corporation to its principal shareholder-manager and to employees other than his family will not generally be considered excessive where it is the practice to distribute corporate profits to shareholder-employees or employees or where corporate policy is to recompense the shareholder-manager(s) for corporate profits that are attributable to his special contribution. ...