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If the maintenance is optional but the amount of the charge therefor is unreasonable in relation to the software license fee, the unreasonable portion will be considered part of the licence fee and, thus, subject to Part XIII tax. ... If the payment is considered to be a payment for services and thus not subject to Part XIII tax, it will also not be subject to the withholding requirements set out in subsection 105(1) of the Income Tax Regulations unless the services are rendered in Canada. With regard to the provisions of services by way of a telephone or electronic mail hotline, it is our view that where the person providing information or advice on such hotlines it outside Canada, the services will not be considered to be rendered in Canada. ...

As a result they may be subject to a withholding tax of 25% by virtue of paragraph 212(1)(d) of the Act and Article 22 of the Treaty unless, of course, they are considered business profits t-o the non-resident and the non-resident does not have a permanent establishment in Canada. ... Instant replay of non-scripted or pre-scripted live programming is considered to be sourced in a videotape which is for use in connection with television broadcasting and is thus subject to withholding tax pursuant to 212(5) of the Act and Article XIII of the Treaty. 4. Whether a particular type of programming will be considered a literary, dramatic, musical or artistic work is a question of fact to be determined from an examination of all the related or associated factors of a particular event. ...

8 January 1991 Income Tax Severed Letter 9028245 F- Manufacturing and Processing Profits- Research and Development of Customized Computer Software Unedited CRA Tags 125.1 Dear Sirs: Re:  Section 125.1- Manufacturing and Processing Profits Research and Development of Customized Computer Software This is in reply to your letter of October 5, 1990 wherein you requested our comments as to whether research and development of customized software which is sold to clients would be considered a qualified activity for purposes of section 125.1 of the Income Tax Act (the Act). ... The issue of whether the development of computer programs qualifies as manufacturing and processing for purposes of section 125.1 of the Act has been judicially considered.  ... In order for the computer tapes or disks, with information transferred to them, to be considered goods for sale, they would either have to be sold as finished products to the general public or sold to a purchaser who entered into a contract for the sale of a good rather than a contract for the supply of a service (labour, skill and materials). ...

(c) Would a truck described in (a) above that is carrying fire-fighting equipment be considered as being "used primarily for the transportation of goods or equipment in the course of a business" for purposes of subparagraph (b)(ii) of the definition of "automobile" in subsection 248(1) of the Act? ... In addition to what would obviously be considered personal use of a motor vehicle supplied by an employer, the Department considers personal use to include travel between the employee's place of work and home, even though the employee may have to return to work after regular duty hours.  ... These particular trips are not considered to be of a personal nature.     ...

You queried whether the shares of Newco owned by the individual could be considered to be shares substituted for the shares of Holdco. ... Generally, in order for one property to be considered to be a property substituted for another property, there would have to be a disposition of the former property and an acquisition of the new property in exchange for the former property. ... In the hypothetical situation described above, it is our view that the shares of Newco would not be considered to be shares substituted for the shares of Holdco. ...

Harding XXXX This is in reply to your letter of June 6, 1985, concerning the treatment of income received from the United States by an individual who is considered to be a resident of both Canada and the United Kingdom but for treaty purposes is deemed to be a resident of the United Kingdom. ... However, we will reply to your question on the assumption that the individual is considered a resident of the United Kingdom. ... Paragraph 3 of the commentary on Article 21 of the OECD model states "...when income arises in a third State and the recipient of this income is considered as a resident by both Contracting States under their domestic law, the application of Article 4 will result in the recipient being treated as a resident of one Contracting State only and being liable to comprehensive taxation ("full tax liability") in that State only. ...

Canadian residency is a question of fact based on the particular circumstances of each individual case: It is not open to an individual to elect to be considered a Canadian resident at his discretion. ... You do not say, in your letter, whether you have sold or rented your home in Canada so we are unable to say conclusively whether you could be considered resident in Canada or-not. ... On the other hand, if the teacher is not considered to be resident of Canada, Australian.tax is payable. ...

It may be considered that the paid-up capital is calculated in accordance with an algebraic formula, in which case, section 257 applies and the result of this calculation cannot be negative. If, on the other hand, the calculation is not considered to be made according to an algebraic formula, we are of the opinion that the rule in Canterra Energy Limited v. ... " It is our view that, if the calculation is not considered to be made in accordance with an algebraic formula, the words "... shall be deducted... ...

On the assumption that there has been no capital cost allowance claimed and that the principal reason for the acquisition of the cottage property was not for the purpose of gaining or producing income therefrom the rental of the property for the winter season will not be considered to have caused a change in use and the cottage property may be designated as the principal residence of the taxpayer. ... If, on the other hand, capital cost allowance was claimed in 1973 or sub- sequently or, if the property was acquired for renting during the winter months the temporary use of the property by the owner during the summer months for personal usage should not be considered a change in use of the rental property. ... The change in use should be considered to have occurred in the year in which capital cost allowance was first claimed. ...

If the EBP becomes an SDA, the grandfather treatment applies in respect of a taxpayer to the extent that the deferred amounts relate, or may reasonably be considered to relate, to services rendered by the taxpayer before July, 1986. Also excluded from the rules governing SDAs are amounts under plans or arrangements to the extent that deferred amounts relate, or may reasonably be considered to relate, to services rendered after June, 1986 where both of the following conditions are met:- the employee is legally obligated to defer payments of these amounts to the employee pursuant to an agreement in writing made with his employee or former employee before February 26, 1986; and- the employee cannot, at anytime after June 1986, cancel or otherwise avoid that obligation. ... All contributions made under the EBP after the establishment of the Statutory Arrangement and all property that can reasonably be considered to derive from those contributions are deemed to be property held in connection with the Statutory Arrangement and not in connection with the existing arrangement. ...