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Where the situs of the payer (generally the principal place of business) is on the reserve, the receipt of that income by a status Indian, wherever he or she may be, is considered exempt income. ... We note, however, that a number of changes to this bulletin are being considered. ... The situs of the payer in this case would be the Head Office of the XXX which presumably is not on a reserve anywhere. f) Interest earned on Canadian government Treasury Bills is considered taxable in the hands of status Indians as the situs of the payer, the Government of Canada, is off the reserve. g) Interest earned and withdrawn from an RRSP is taxable in the hands of a status Indian as RRSP's are trusted and from information received, we understand that the trustees are generally situated in a Head Office location which is not on a reserve. ...

Generally, a brokerage firm will act as the intermediary between the short lender and the short seller, however, for the purpose of this discussion, the brokerage firm, as the short seller, is considered to be acting as principal and is acquiring the securities directly from the short lender on its own behalf. ... The borrower, however, is considered to have acquired the shares and the consideration paid to the lender is the obligation of the borrower to deliver identical shares to the lender at some time in the future. ... Consequently, the short seller is considered to have acquired the shares from the lender and to have then sold them and, if these transactions form a constituent part of the business activity of the particular taxpayer, any resulting income would be included in the income of the short seller for tax purposes pursuant to section 9 of the Act. ...

Will the sales tax paid by B be considered an additional capital contribution to the partnership and be added to the ACB of B's partnership interest? ... For purposes of the SSTA, where the purchaser is a partnership, the individual partners rather than the partnership are liable for the tax to the extent that each partner is considered to have acquired an interest in the property. ... The payment of the tax by the partnership would be a payment of a personal liability of partner B and would be considered a distribution of property by the partnership to partner B. ...

Will the general partners be considered limited partners by virtue of paragraph 96(2.4)(b) of the Act for the purposes of the "at-risk rules" in subsection 96(2.2) of the Act? ... Consequently, the general partners of that partnership would not be considered limited partners by virtue of paragraph 96(2.4)(b) of the Act. ... Therefore, the general partners will be considered to be limited partners by virtue of paragraph 96(2.4)(b) of the Act. ...

Where a specified financial institution invests in terms preferred shares of a related corporation, the shares will generally be considered to have been acquired in the ordinary course of business. Refer to question 62 in the 1984 Conference Report for the factors that have been considered in establishing whether shares were or were not acquired in the ordinary course of business". ... Considering the above factors however, it seems quite conceivable that a share acquisition in circumstances similar to those outlined in your letter would be considered to be in the ordinary course of the acquiring corporation's business. ...

Essentially, a "gift", eligible for tax credit treatment, is considered to have been made: i) in circumstances where the gift vests at the time of the giving of the gift, and ii) where the value of the residual interest is reasonably ascertainable. ... In this respect, when property is considered to vest it must in all cases vest indefeasibly. ... Where encroachment is possible under the arrangement referred to above, no gift would be considered made to the charity. ...

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. ...

Further, please comment on whether control would be considered to be acquired by a "group" of persons for the purposes of subsections 111(4) and (5) in the following situations: (a) If an arm's-length lender acquires shares of a corporation for the purpose of securing a loan, when would the lender be considered to be part of a "group" controlling the corporation? ... In response to your specific questions: (a) Whether the lender would be considered to be part of a group that controls the corporation would depend on the circumstances of the particular situation, including the percentage of shares owned by the lender, who the other shareholders are, the relationship between the lender and the other shareholders, etc. ... (d) If A Co and C Co act in concert to control Opco, they would be considered to be a group of persons that had acquired control of Opco. ...

Would the individual be considered to be "actively engaged" in the business of farming because the individual's work on the farm is billed through his partnership? ... This is in contrast to a passive shareholder or investor who would not be considered to be "actively engaged on a regular and continuous basis". ... Would the person be considered to be actively engaged if the individual was a director who received directors fees, or in the alternative received nominal employment income of $6,000 per year? ...

Therefore, the at-risk amount will be reduced and the non-interest bearing feature will be considered a prescribed benefit. ... In this case, the at-risk amount will not be reduced and the non-interest feature of the loan will not be considered a prescribed benefit. ... In order for a partnership to be considered to be a tax shelter, one must regard "statements or representations made or proposed to be made" according to the preamble of the definition of tax shelter in subsection 237.1(1) of the Act. ...