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Another important factor to be considered is the proportion of the amount of space rented in relation to the total area of the building. ... In our view the use of the word principally requires that the property as a whole must be considered rather than a percentage or a portion of the property. Provided that the principal or primary use test is met, the entire property would be excluded from being considered to be non-qualifying real property. ...

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. ...

XXX It also follows that, in our opinion, any new separate assets which were not part of the Original Plan could not be considered to be an “approved project property” to be used in an “approved project” for the purposes of subsection 127(9) of the Act and section 4604 of the Regulations for the following reasons: (1) The new separate assets would not be considered part of the plan submitted “before July 1988”. (2) Such assets may be considered as substantial changes to the Project. (3) The Shorter Oxford English Dictionary defines “project” as something projected; a plan, a scheme; a proposal. Based on this definition, only assets described in the Original Plan (and additions thereto) may be considered as meeting the definition of “approved project”. (4) The French version of the Act uses the term “ouvrage approuve” as the equivalent of “approved project”. ...

7 October 1990 Income Tax Severed Letter- Arm's Lenth- Related Persons Unedited CRA Tags 251 Dear Sirs: This is in reply to your letter of September 6, 1990 requesting our opinion as to whether or not, for purposes of section 251 of the Income Tax Act (the "Act") XXX and its individual members are considered to be "related persons", and consequently, whether or not they are considered to deal with each other at arm's length. ... In the absence of a better definition, a transaction at arm's length could be considered to be a transaction between persons between whom there are no bonds of dependence, control or influence, in the sense that neither of the two co-contracting parties has available any moral or psychological leverage sufficient to diminish or possibly influence the free decision-making of the other. ... Different interests are considered to exist when each party has completely independent interests from the other parties to a transaction, notwithstanding the fact that each party may have the `same' purpose of economic gain. ...

Our Comments As discussed during our second telephone conversation on April 3, 1991, it is our view that land inventory of a real estate developer would normally be considered used in an active business for purposes of the definition of small business corporation in subsection 248(1) of the Act. ... The fact that mortgage reserves and mortgage interest may be considered incident to or pertaining to the active business does not necessarily determine that the mortgages receivable are used in the active business. ... In summary, mortgages are generally not considered to be assets used in an active business and where more than incidental to the business, the income earned therefrom is considered income from property and subject to the "specified investment business" rules in paragraph 125(7)(e) of the Act We trust that our comments will be of assistance to you. ...

Where the lease is subsequently cancelled or altered to favour the shareholder, could the subsequent cancellation or alteration not be considered to be a benefit conferred on the shareholder at that time. 3. We agree that the provisions for the extension of the lease is only one of the factors to be considered in calculating the amount of any shareholder benefit. It must, however, be considered. In order to satisfy the Department's position, as expressed in paragraph 17 of IT-432R, all of the relevant facts related to each particular situation, including all of the lease option periods, must be reviewed and considered in the valuation of the amount of any shareholder benefit pursuant to subsection 15(1) of the Act. ...

It is your view that for purposes of section 85 of the Act the transferred contract would be considered to be inventory of the construction company on the basis that this particular contract is only one of many which the company has from time to time. ... Only in the case of a taxpayer buying and selling contracts as part of his business would a contract be considered inventory. Thus the transferred profits would not be considered to be inventory for purposes of section 85 of the Act. ...

Martineau (613) 957-8953 Attention: XXX April 1, 1992 Dear Sir/Madam: Re: Interpretation of the definition of "Taxable Preferred Share" in Subsection 248(1) of the Income Tax Act (the "Act" This is in reply to your letter dated January 27, 1992, whereby you requested our views as to whether a stock split would not be considered a share issue at the time of the split for purposes of the definition of Taxable Preferred Shares in subsection 248(1) of the Act, and would be considered a modification of the outstanding shares for the purposes of paragraph 248(l)(e) of the said definition. ... It is our view that a stock split as described in IT-65, Stock Splits and Consolidations, would not be considered to be an issuance of shares for purposes of paragraphs 248(l)(a) and (b) of the definition of Taxable Preferred Share. ... Bryan Bryson, from Current Amendments, opined that, from a policy point of view, a corresponding decrease in the dividend entitlement due to a stock split should not be considered a modification of the outstanding shares for the purposes of paragraph 248 (1) (e) of the definition of taxable preferred share. ...

As a result, paragraph (d) of the definition of eligible amount prevents him from participating in the plan because he is considered to have acquired the home more than 30 days prior to the withdrawal. ... This position is incorrect because pursuant to the preceding analysis she is considered to have already owned the home. ... He indicated that he was involved in the drafting of this legislation, and this issue was considered. ...

You also feel that it is not necessary for an employer to have a permanent establishment in a foreign country to be considered to be carrying on a business in that country. ... It is, however, the Department's view that architectural services may generally be considered to be "with respect to... any construction... activity" for purposes of clause 122.3(1)(b)(i)(A) of the Act where such services relate to the construction of a building or similar structure. ... Generally, we agree that it is not necessary for an employer to have a permanent establishment in a foreign country before he can be considered to be carrying on a business in that country. ...