Search - considered

O'Byrne   (613) 957-2126 January 26, 1990 Dear Sirs: This is in reply to your letter of October 23, 1989 wherein you requested our opinion concerning withholding tax requirements in the following hypothetical situation: (1)     The distributor is a taxable Canadian corporation. (2)     The distributor enters into a distribution agreement ("the Agreement") with a non-resident manufacturer of computer software. (3)     The Agreement allows the distributor to import and distribute software products from the non-resident manufacturer. (4)     The non-resident manufacturer is not resident in Canada, and is not considered to be carrying on business in Canada, pursuant to the provisions of the Act. (5)     Under the terms of the Agreement, the distributor's relationship with the manufacturer is that of an independent contractor.  ...

In addition, in order for the capital cost allowance and also the other costs to be considered as medical expenses under paragraph 118.2(2)(e) of the Act, they would have to be "for the care...at a school, institution or other place of the patient. ...

In our view the fee paid by a 24(1)  Accordingly, it is our opinion that the transaction cannot be considered as an outright sale because of the various restrictions listed in the license agreement. ...

Some important factors to be considered in making such a determination include:-      location of the business office-      where the books and records are kept-      where business transactions with customers and suppliers are arranged-      where employees report for work or are paid from-      where inventory is ordered and often maintained Where it can be established that the reserve is where the permanent establishment of a business is located, then all of the business income earned by individual status Indians would be exempt.  ...

Where two or more persons agree that each provides his own property to perform a specific tasks and receives a specific division from such tasks it may be considered a joint venture. ...

However, because he also dies in 1990, his taxation year is considered to end at that time.  ...

Receipt of free or rent-reduced rental accommodation in exchange for an interest free loan is considered to be a barter transaction.  ...

A property is considered to be jointly owned in circumstances where two or more persons jointly hold title to the property and are jointly liable to the vendor for the agreed-to purchase price.  ... Where the employer proceeds to make that vehicle  available to the employee, a standby charge benefit is considered to be  received by the employee computed on the full unrestricted cost of the automobile being provided.  ...

Salaries, wages and pens ion payments are considered to be income of the year in which they are received, It follows that if the taxpayer receives a back-payment in respect of one or more previous years, it is nevertheless taxed in the year of receipt. ... The credit is intended to encourage people to provide their own pensions and, therefore, social security pensions are generally not considered qualifying income. ... Qualifying alimony, separation and maintenance payments are generally considered to be income to the receiving spouse or former spouse.  ...

YOUR REQUEST Having considered the above, you ask (1)     whether railway track used by mining companies for the purpose of gaining or producing income from a mine in the above scenario can also be considered as Class 10(k) property, and (2)     whether the reference to "shipping output from the mine" in Class 10(m)(iv) applies to products destined for sale or to any output, whether destined for sale or for processing by the owner of the railway track. ... Class 10(k)      You asked whether railway track used by mining companies for the purpose of gaining or producing income from a mine can also be considered as Class 10(k) property.       ...