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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. ...

Short (613) 957-2134 7-4467 Subject: Medical Expenses-Adjustable Beds, Therapy Chairs and Lift Chairs This is in reply to your memorandum of October 25, 1989 wherein you have questioned the deductibility, as a medical expense of the 24(1) We have previously considered whether or not automatic adjustable beds could be considered a device or equipment of a prescribed kind for use by the patient as prescribed by a medical practitioner. ... Because of the bed's "rocker switches" which control the elevating and lowering functions of the upper and lower portions of the bed we examined the possibility that the bed could qualify as a rocking bed for poliomyelitis victims as allowed by paragraph 118.2(2)(i) of the Income Tax Act (the "Act"); however, our initial research has indicated that rocking beds, which operate in a "see-saw" fashion by elevating the otherwise prone individual so that the lungs could more easily expand and then "lowering" the patient until the lower portion of the body is above the upper (forcing abdominal contents upwards against the lungs by force of gravity) thereby assisting the lungs to expel air, were designed as a respiratory device and that while the beds may not yet be considered entirely obsolete, more efficient respiratory devices are now usually prescribed and readily available (for which a medical expense may be available under Regulation 5700(c) of the Act). ... We considered whether the 24(1) chair could be a prescribed medical device or equipment if prescribed by a medical practitioner and have concluded that they could not. ...

The individual must be under instruction and direct supervision for the fees to be considered as tuition. ... It is our view, therefore, that the cost of both dual and solo flying time while under instruction should be considered as an eligible tuition cost. In contrast, the cost of flying time while not under instruction is not to be so considered even though the fees were paid to a qualifying educational institution. ...

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. ... 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 therefore are not to be considered to be either comprehensive or all inclusive. ...

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 24(1) 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. ...

Will the contribution interest buy down and the loan insurance (or loan guarantee) offered by ACOA be considered government assistance in respect of or for the acquisition of property, and as a result, require that the capital cost of the property be reduced under paragraph 127(11.1)(b) of the income Tax Act (the "Act")? Alternatively, will they be considered to be income under paragraph 12(1)(x) of the Act? ... As stated in the response to the first question, the federal government loan insurance or guarantee will normally not be considered assistance for purposes of paragraph 12(1)(x) or 127(1l.1)(b) of the Act. ...

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. ...

Such a 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 ruling request must also contain a statement as to whether any of the issues involved are to the best of a taxpayer's knowledge being considered by a District Office and/or Taxation Centre in connection with a tax return already filed, or if any of the issues are under objection. ... If the amount is in satisfaction of an obligation by the employer to the employee arising as a result of his employment, the amount is usually considered employment income unless it can be considered a retiring allowance. ...

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 QSBCS'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. ...

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. ...