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We have further considered the matter as a result of the submissions made in our meeting and have also considered the material you left. ...

24 August 1989 Income Tax Severed Letter 5-8349- Phantom stock plan Unedited CRA Tags none Dear Sirs: This is in reply to your letter of July 5, 1989 wherein you request our opinion as to whether the phantom stock plan described in your letter might be considered a salary deferral arrangement. As stated at the 1988 Canadian Tax Foundation Conference, it is the Department's current position that where, on a specified date, the value of the phantom shares on that date will be paid to the employee, the plan will be considered a salary deferral arrangement, notwithstanding that the value on the payment date may be less than the value at the time such shares were granted. ...

In our opinion the filing of an agreement pursuant to paragraph 78(1)(b) of the Act in respect of an unpaid amount owing by a Canadian resident debtor to a non-resident creditor residing in a country with which Canada does not have a tax treaty would not in and of itself result in the non-resident creditor being considered to carry on business in Canada. The opinion expressed herein is not an advance income tax ruling and, in accordance with paragraph 21 of Information Circular No. 70-6R2 dated September 28, 1990, is not considered binding on the Department. ...

7 January 1991 Income Tax Severed Letter- Proceeds on a Life Insurance Policy—Substituted Property Unedited CRA Tags 248(5), 74.1(2) Dear Sirs: This is in reply to your letter of July 20, 1990 asking if the proceeds on a life insurance policy would be considered substituted property such that the attribution rules would apply. Based on the facts given in your letter and on a subsequent telephone conversation (Baldwin XXX it is our opinion that the proceeds on the life insurance policy would be considered to be substituted property. ...

ANSWER Section 74.4 requires that one of the main purposes of the transfer may reasonably be considered to be to reduce the income of the individual and to benefit a designated person, as defined in subsection 74.5(5) of the Act. ... The Department is of the opinion that the right conferred upon a designated person (as defined by subsection 74.5(5) of the Act) to share in dividends or capital appreciation of a corporation is considered to be a benefit for the purposes of subsection 74.4(2) of the Act. ...

In our view, interest earned on a compound interest CSB up to November 1 preceding the date of death of a bondholder is considered to be a "right or thing" for the purposes of subsection 70(2) and (3) of the Act, to the extent that the amount was not included or required to be included in the deceased's income for the year or a preceding year. Interest accruing from November 1 to the date of death is considered to be an amount referred to in paragraph 70(1)(a) of the Act and therefore not eligible for inclusion in a separate return under subsection 70(2). ...

Department's Position Provided the employee has an enforceable claim as at the date of death against the employer for the amount of the bonus declared, the value of that right at the date of death would be considered a "right or thing" within the meaning of subsection 70(2) of the Act. However, where the employer has a contractual obligation to pay a bonus annually or on some other periodic basis, but the bonus for the period has not been declared as of the date of death, the amount is considered to be a periodic payment of remuneration taxable under subsection 70(1) of the Act. ...

7 October 1991 Income Tax Severed Letter- Statutory authority in a foreign jurisdiction Unedited CRA Tags 13(21)(d)(iv), 54(h)(iv) Dear Sirs: Re: Statutory Authority in a Foreign Jurisdiction Subparagraphs 13(21)(d)(iv) and 54(h)(iv) This is in reply to your letter of August 8, 1991 wherein you request our views whether the expropriating authority of a foreign government could be considered a "statutory authority" for purposes of subparagraphs 13(21)(d)(iv) and 54(h)(iv) of the Income Tax Act (the Act). ... We agree that for purposes of subparagraphs 13(21)(d)(iv) and 54(h)(iv) of the Act the expropriating authority of a foreign government could be considered a "statutory authority". ...

7 September 1991 Income Tax Severed Letter- Retiring allowance Unedited CRA Tags 248(1) Dear Sirs: Re: Retiring Allowance Subsection 248(1) of the Income Tax Act (the "Act") This is in reply to your letter of May 14, 1991 wherein you request confirmation that the payment to be made under the proposed agreement will be considered a retiring allowance as that term is defined in subsection 248(1) of the Act. ... Amounts paid under pension plans are generally considered to be superannuation or pension benefits. ...

As a result some grants formerly considered non-taxable are now taxable. We must therefore inform you that grants under the Ontario Farm-Start Program are taxable on receipt unless they can be considered to reduce the cost or capital cost of property acquired. ...