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27 March 1990 Ministerial Correspondence 59134 F- Revenue Guarantees Considered Prescribed Benefits for Tax Shelter Purposes Unedited CRA Tags 237.1(1), 231(6) 19(1) File No. 5-9134   C.R. Bowen   (613) 957-2096 March 27, 1990 Dear Sirs: Re:  Revenue Guarantees as Prescribed Benefits  for Tax Shelter Reporting Purposes We are writing in reply to your letter of November 22, 1989, wherein you requested our comments on the amount of a revenue guarantee that would be considered a prescribed benefit for the purposes of the definition of "tax shelter" in subsection 237.1(1) of the Income Tax Act (the "Act"). ... Where a revenue guarantee provided to a limited partnership may reasonably be considered to ensure that a limited partner will receive a return of all or a portion of his outlay in respect of a tax shelter, the amount of such benefit will be considered a prescribed benefit for the purposes of subsection 231(6) of the Regulations.  ...

10 July 1989 Ministerial Correspondence 58094 F- Activities Considered as Carrying on of a Business Unedited CRA Tags n/a 19(1) File No. 5-8094   R.B. Day   (613) 957-2136 July 10, 1989 19(1) We are writing in reply to your letter of May 1, 1989, wherein you requested our views as to whether the activities described in your letter would be considered to be carrying on a business, the income from which would be subject to income tax. 24(1) OUR COMMENTS For income tax purposes, business is defined, in part, as including a profession, calling, trade, manufacture or undertaking of any kind whatever but does not include an office or employment.  ... From the limited information contained in your letter, it would appear that your activities may be considered an undertaking carried on with a view to profit or a reasonable expectation of profit.  ...

Where it is clearly to the employer's advantage for an employee to be a member of a club, the employee is not considered to have received a taxable benefit.  ... You have also referred to correspondence issued by this Department which suggests that government employees are considered to have received taxable benefits where club dues are paid on their behalf by their employer.  ... If such is not the case and the primary benefit is considered to go to the employer then the general guidelines set out in the bulletins apply equally. ...

None of the mileage described in the first example is considered incident to the discharge of the duties of employment. 2.      ... Similarly, the travel from home to the memorial service and then to the church is considered employment-related but the travel from the church to home is considered personal. 4-6.     None of the mileage described in examples 4, 5, and 6 is considered incident to the discharge of the duties of employment. 7.      ...

You are concerned that paragraph 2 of Article 4 ("Article 4(2)") of the Convention may preclude a Society from being considered a resident of Australia. In our opinion the negotiators of the Convention intended that exempt organizations, such as a Society, be considered resident in the country in which they were organized.  Accordingly, we are of the view that Article 4(2) of the Convention would not preclude a Society from being considered resident in Australia for purposes of the Convention. ...

Principal Issues: What per-kilometre rates are generally considered a reasonable motor vehicle allowance. Position: The prescribed rates are generally considered reasonable. Reasons: Income tax regulation 7306. ... The per-kilometre rates described in the news release are considered reasonable rates for an employee’s use of a personal vehicle for business purposes. ...

27 July 2005 Ministerial Correspondence 2005-0134021M4- Reserve Land Unedited CRA Tags 81(1)(a) Principal Issues: Whether employment income earned on specific lands of a certain First Nation would be considered tax exempt for years prior to XXXXXXXXXX? ... You have indicated that the federal Crown settled an agreement with the XXXXXXXXXX First Nation in XXXXXXXXXX with respect to certain lands that, until XXXXXXXXXX, were considered to be reserve lands. ... If the land was not a reserve, then the employment income earned on that land would not be considered property situated on reserve. ...

You request our comments on the following: i)     Would the mortgage be considered used in an active business carried on primarily in Canada? ... iv)     If prior to the sale of land and buildings, the corporation purchased a replacement property (within the meaning of subsection 44(5)) would the replacement property be considered to be a qualified asset prior to the sale of the original property i.e. prior to its being put into use? ... An advance income tax ruling might be considered for a specific proposed transaction. ...

The answer to your question is dependant on whether or not the loan or mortgage in question can be considered to be received in the circumstances described in subsection 80.4(1) of the Act. It is our view that a third party loan will be considered to be received in the circumstances described in subsection 80.4(1) of the Act. It is our view that a third party loan will be considered to be received by virtue of employment and thus subject to subsection 80.4(1) of the Act, if the employer is involved in the initial granting of the loan. ...

A proper request entails the provision of all related documents for our review as well as an identification of all of the specific provisions of the Income Tax Act (the "Act") in respect of which the request is to be considered.  ... A fund of this nature is also generally considered to be conducting a business with the result that all gains and losses are treated as being on income account. ... In response to your third concern, while a number of provisions of the Act may have application and no general rule can be applied, in most cases, a fund will be considered to be a foreign property if it holds more than 10% of its investments in foreign securities. ...