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They have also requested that IT-131R2 be revised to reflect this matter and to state that such training expenses would not be considered to be capital in nature. 2. ... The XXX have requested our views, from both the employer and employee's perspective, on the income tax aspects of their DRDP's with particular emphasis on their being considered to qualify as a Private Health Services Plan ("PHSP") as defined in subsection 248(1) and discussed in IT-339R2. ... From our review of the XXX letter of August 26, 1991, it would appear that they are requesting a blanket ruling to the effect that any meeting of the XXX where some element of "scientific continuing education" was present, would not be considered to be a convention and the costs incurred would not be considered to be capital in nature and, on the basis that these costs are training costs, would be deductible in computing professional income. ...

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 XXX 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. ...

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. ...

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. ...

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. ...

Please note that if the interest is retained in the account, it will be considered a contribution by the employee to the Plan. Interest income earned on these amounts will also be considered to be employment income and must be reported annually by the employee. ... The interest income would not be considered part of the salary and wages used to calculate the 33 1/3% maximum for annual deferrals. ...

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. ...

If property held by a trust for the benefit of Indians or a band is itself "personal property" of the Indians or the band, then the property would be considered as situated on a reserve if that property, on its own merits, would be considered located on a reserve. If, on the other hand, the "personal property" is the interest in the trust, the situs of the trust must be considered in light of other factors connecting it to a location on or off a reserve. An important factor would be the nature of the underlying property in the trust, and whether that property would be viewed as being located on a reserve if considered on its own merits. ...

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. ...

Gillman (613) 957-8953 Attention: 19(1) July 23, 1992 Dear Sirs: Re: Scientific Research and Experimental Development ("SR&ED") This is in reply to your letter dated January 29, 1992 wherein you requested a technical interpretation whether accounting fees and interest expense could be considered qualified expenditures under section 2900 of the Income Tax Regulations (the "Regulations"). ... Where, for example, a taxpayer rents a photocopy machine that will be used approximately 50 per cent of the time for SR&ED activities and 50 per cent of the time for other purposes, no portion of the rental payments is considered to be an expenditure that is directly attributable to SR&ED. Also, although a portion of the salary or wages and related benefits of an employee who directly undertakes, supervises or supports the prosecution of SR&ED is, as indicated above, considered to be directly attributable to the prosecution of SR&ED, none of the overheads (e.g. telephone, office equipment, etc.) that could be allocated to that particular employee are considered to be directly attributable to the prosecution of SR&ED unless it can be established that these overheads would not otherwise have been incurred. ...