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In accordance with Interpretation Bulletin IT-392, each class of membership in the Texas LLC would be considered to comprise a single class of the capital stock of the LLC consisting of 100 issued shares and each owner of a beneficial interest in each class of membership in the LLC is then considered to own a number of shares proportionate to his beneficial interest in that particular class of membership. Each amount distributed on account of profits by the Texas LLC to its owners will be considered dividends for the purpose of the Act and the regulations made thereunder. If the Texas LLC is treated as a partnership for the purposes of the Internal Revenue Code (the "Code") such that the shareholders ("partners") rather than the company are liable to tax under the Code on the income of the company, such company will not be considered to be a resident of the U.S. under paragraph 1 of Article 4 of the Canada-U.S. ...

You indicate that RRSP income is considered to be pension income udner the Convention according to Information Circular 76-12R2. ... We do not find any specific statment in the Ciruclar to the effect that RRSP income is considered pension income under the Treaty, and we have asusmed you consider the lump sum payments outs of the RRSP's in question to be “Similar Payments”. 2. ... As a rule of interpretation, the specific overrides the general, and therefore, a payment from a trust governed by an RRSP would not be considered income from a trsut, but rather would be considered a benefit out of or under an RRSP. ...

A corporation's business will be considered to have been carried on in Canada if at least 50% of its employees are engaged in the business in Canada or at least 50% of its salaries or wages are paid for services provided in Canada in respect of the business. If the corporation is part of a group of related corporations, the combined services of their employees and the combined salaries and wages paid must be considered in making this determination. ... Due to the detail and complexity of the Regulations regarding these issues, the foregoing comments are meant only to provide an overview of the relevant provisions and under no circumstances are they to be considered to be either comprehensive or all inclusive. ...

Convention includes any payment out of a retirement plan and a RRIF is generally considered to be a retirement plan. ... It is our view that, where payments in excess of the "minimum amount" are withdrawn from a RRIF in a year, such payments will not be considered to be periodic payments. ... Consequently, a RRIF payment received by a U.K. resident would not be considered a payment from an annuity as defined in Article XVII(4) of the U.K. ...

A specified investment business is, in essence, a business the principal purpose of which is to derive its income from property and it would, were it not for one of the exceptions set out in paragraph 125(7)(e), probably be considered to be a "specified investment business". However, such a business is considered to be an active business rather than a specified investment business where the corporation employs in the business throughout the taxation year more than five full-time employees. ... It is our view, however, that where for instance cash that is temporarily surplus to the needs of a business is invested in short-term income producing investments, those investments may be considered to be used in the business. ...

A corporation's business will be considered to have been carried on in Canada if at least 50% of its employees are engaged in the business in Canada or at least 50% of its salaries or wages are paid for services provided in Canada in respect of the business. If the corporation is part of a group of related corporations, the combined services of their employees and the combined salaries and wages paid must be considered in making this determination. ... For this purpose, an annuitant of an RRSP and the RRSP itself are considered to be related persons. ...

A corporation's business will be considered to have been carried on in Canada if at least 50% of its employees are engaged in the business in Canada or at least 50% of its salaries or wages are paid for services provided in Canada in respect of the business. If the corporation is part of a group of related corporations, the combined services of their employees and the combined salaries and wages paid must be considered in making this determination. ... Due to the detail and complexity of the Regulations regarding these issues, the foregoing comments are meant only to provide an overview of the relevant provisions and under no circumstances are they to be considered to be either comprehensive or all inclusive. ...

You have requested our comments related to the following questions: 1) Will the shares of Holdco be considered to be shares of a small business corporation as defined in subsection 248(1) of the Act and as such be considered to be QSBC's in the above situation? ... The partnership interest and the loan to the partnership will both be considered to be "assets that were used in an active business carried on primarily in Canada by the particular corporation". As such, provided the other requirements in the definition of QSBCS in subsection 110.6(1) are met, the shares of Holdco will be considered to be QSBCS's. 2) Our policy as stated in the answer to question 51 of the 1986 Conference Report Round Table remains in effect. ...

Our Comments Where cash, which is temporarily surplus to the needs of a business, is invested in short-term income producing investments, it is our general view that these accumulated funds may be considered to be used in the business. Where, on the other hand, cash and short-term investments, which are clearly in excess of that required for use in the business, are retained in the corporation on a permanent basis, they would not be considered to be funds used in the business. Rather, such funds would be considered as permanently set aside for investment or non-qualified uses (i.e. uses other than in an active business). ...

We have been asked whether a settlement arrangement will still be considered a structured settlement, as contemplated in IT-365R2, if the annuity contracts referred to above were commutable after the death of the claimant. ... Accordingly, under such an arrangement, the payments remaining under the guarantee period must not be capable of commutation in the event of the death of the claimant during such guarantee period in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. With respect to the annuity contract to fund the care element under a settlement arrangement, such contract must be non-commutable during the life of the claimant in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. ...