Search - considered

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. ...

Baldwin (613) 957-3499 19(1) January 25, 1991 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 19(1) Is our opinion that the proceeds on the life insurance policy would be considered to be substituted property. ...

The Department's position as set out in paragraph 2 of Interpretation Bulletin IT-131R2 is that a convention held during an ocean cruise is considered as being held outside the territorial scope of the organization. Since subsection 20(10) of the Income Tax Act requires the convention to be held at a location that can reasonably be regarded as consistent with the territorial scope of the organization it is our view that the expenses relating to a convention that your clients propose to hold during an ocean cruise (a cruise to Alaska is considered an ocean cruise) would not be deductible by the members. ...

We are of the view that an investment which is not a foreign property (within the context of subsection 206(1)) in itself would not be considered foreign property should it be denominated in U.S. dollars. Furthermore, investment income and proceeds of disposition of such investments are not considered to be foreign property provided they are immediately converted to Canadian currency or promptly used to acquire property that is not foreign property. ...

Day (613) 957-2136 NOV- 2 1989 19(1) We are writing in reply to your letter of August 30, 1989, wherein you requested our views as to whether or not a partnership would be considered a person for the purposes of section 54.2 of the Income Tax Act. ... " In view of the above, it is our opinion that a partnership would not be considered a person for purposes of section 54.2. ...

Albino (94 DTC 6071) (the “Case”) supports your argument that the payment of an amount in lieu of statutory notice of termination could also be considered a payment in recognition of long service and, as such, the payment would be a retiring allowance within the meaning assigned by paragraph (a) of the definition of retiring allowance in subsection 248(1) of the Income Tax Act (the “Act”). ... A payment of the first type would be considered employment income and a payment of the second type would be considered a retiring allowance. ...

CAPITAL EXPENDITURES A lease inducement payment made in circumstances outside the ordinary course of a payor's business operations is considered to be a non-deductible capital expenditure when it can be established that it yields a benefit of an enduring nature to the landlord. ELIGIBLE CAPITAL EXPENDITURE A lease inducement payment made in the ordinary course of a payor's business of property rental to obtain the lead or anchor tenant(s) for a project is considered to be an eligible capital expenditure where such payment yields a benefit of an enduring nature to the landlord. ... CURRENT EXPENDITURE A lease inducement payment made in the ordinary course of a landlord's business of property rental to a non-anchor tenant is considered to be on income account. ...

In our telephone conversation (19(1)/Guglich) you indicated that a view has been presented that although the generator and other equipment would be included in Class 1 under paragraph (k) or (m) the turbine could be considered a separate asset which is not electrical generating equipment. ... In our view all the assets used to produce the electrical energy would be considered to be "electrical generating equipment". Since the electrical energy is produced by an electrical generator which is run by a gas powered turbine both the generator and the turbine would be considered part of the electrical generating equipment. ...

Spice (613) 957-8953 24(1) Attention: 19(1) December 10, 1991 Dear 19(1)Re: Venture Capital Corporations We are writing in reply to your letter of July 15, 1991, in which you ask whether venture capital corporations are considered to be small business investments for purposes of subsection 207.1(5) of the Income Tax Act (the "Act"). ... For this purpose, an annuitant of an RRSP and the RRSP itself are considered to be related persons, (b) is or is related to member of a partnership that controls the corporation in any manner, (c) is or is related to a beneficiary under a trust that controls the corporation in any manner, (d) is or is related to an employee of the corporation where the employees control the corporation, except where the corporation is controlled by one person or a related group of persons, or (e) does not deal at arm's length with the corporation. 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. ...

The comments below pertain to the following fact scenario: There exists a discretionary trust where under the trust indenture it specifies that a capital gain earned in the trust is to be considered income for trust purposes. ... A capital beneficiary (who is not also an income beneficiary) will not be able to share in the accumulating income of the trust since no part of the accumulating income will be considered capital for trust purposes. 2. ... Under a scenario where the indenture agreement of a discretionary trust does not specify that a capital gain earned by the trust is income and permits the trustees to encroach on capital for the benefit of the capital beneficiaries, then a capital gain earned by the trust will be considered capital for trust purposes. ...