Search - considered

Subsequent to the conference it was noted that our spoken response could be viewed as being in conflict with the contents of paragraph 28 of Interpretation Bulletin IT-293R, which indicates that: "Where the terms of a government loan include a forgiveness feature contingent upon the happening of an event that is considered remote at the time the loan is negotiated, the provisions of subsection 13(7.1) and paragraph 53(2)(k) with respect to "forgivable loans" are not considered applicable. ... Although the possibility of forgiveness existed, the possibility was considered remote at the time the loan was granted since the forgiveness would only arise to the extent the selling price of the property was insufficient to cover the first mortgage, the investor's capital, and all or part of the ARP second mortgage. ...

Director's fees and employee stock option benefits are normally considered income from an office or employment. ... If the directors do not come to Canada at all, it is unlikely that they should be considered employed in Canada. ... The effect, if any, of any relevant tax treaty should also be considered. ...

Thus, in such cases, the payment of reasonable membership fees by an employer are not considered to be a taxable benefit to the employee. ... Thus the employer would generally be considered to be the primary beneficiary of such policies and the employee should not be considered to be in receipt of a taxable benefit. ...

You seek clarification as to whether the trees removed from the farm land should be considered real property for purposes of the definition of qualified farm property set out in subsection 110.6(1) of the Act. ... Our Comments Generally, where there is a contract for the sale of standing timber without any disposition of an interest in the land itself, it is our view, that the trees are considered to be personal property rather than real property. ... Thus, where a farmer enters into an agreement with a party which permits him to cut and remove the trees from the land, it is our view, that these trees would be considered personal property and accordingly the sale thereof would not be viewed as a disposition of real property used in carrying on a farming business in Canada. ...

., $.01 per share) so that they are "legal for life" and can be considered as qualified investments for insurance companies, pension funds, etc. ... Pursuant to subparagraph 6204(1)(a)(i) of the ITR, one of the conditions that must be met before a share would be considered as a prescribed share is that under the terms or conditions of the share or any agreement in respect of the share or its issue, the amount of the dividends that the corporation may declare or pay on the share must not be limited to a maximum amount or fixed at a minimum amount by way of a formula or otherwise. in view of the above and in view of the fact that the dividends are cumulative, notwithstanding that the dividend entitlement is merely $.01per share, we are of the opinion that the shares are not prescribed shares within the meaning assigned by section 6204 of the ITR. ... In the event that the holders of the non-voting shares would be entitled on the dissolution of the company to receive at least the amount of declared but unpaid cumulative dividends on the shares, it is our view that the "liquidation entitlement", as the term is used in subparagraph 6204(1)(a)(ii) of the ITR, would be considered fixed at a minimum amount. ...

It is a saving provision which ensures that one corporation which otherwise controls another corporation will not be considered to control where the Minister is satisfied that certain conditions have been met. Its application extends to provisions such as the definition of a "Private Corporation" at paragraph 89(1)(f), the inadequate consideration rules at subsections 69(6) and (7) and other law where de facto control tests are not considered appropriate. The wording in those specific areas refer to "control" or "controlled", therefore in order to properly match or align the wording among these various provisions and subsection 256(6) it was considered necessary to include the phrase "controlled or controlled directly or indirectly in any manner whatever" in the preamble to subsection 256(6). ...

Our Opinion I- If the pension plan itself states that surplus amounts are to be paid to the employer, the payments made to the employees would not be considered superannuation or pension benefits. The amounts being paid by the City to the employees (current, former or their estate) would, in our opinion, be considered a taxable benefit received by the employees by virtue of their employment pursuant to paragraph 6(1)(a) of the Income Tax Act (the "Act"). ... As for the amounts to be considered "rights or things" pursuant to subsection 70(2) of the Act, the employees must have had a clear right to the amounts at their death. ...

Provided the trust is governed by the RCA, it will be considered to be an RCA trust per subsection 207.5(1) of the Act. 2. ... The portion of the premium related to the death benefit and paid directly by the employer will be considered to be employment income to the employee pursuant to paragraph 6(1)(a) of the Act and deductible to the employer pursuant to 18(1)(a) of the Act. ... Since the total cost of the death benefit will be, in effect, paid by the employee and the benefit is payable directly to the employee's estate or nominee, the death benefit will not be considered to have been received as a distribution from the RCA nor will it be subject to tax in the beneficiary's hands. ...

XXXX Manufacturing and Processing Profits Deduction Receipts, from a business interruption insurance policy, that are separate and distinct front any property damage coverage and which represent payments for the loss of earnings, are considered to be income. ... "where a taxpayer has a right to compensation for a property or income loss because of contract... compensation. for loss or destruction of inventory or for loss of profits is considered to be income from the carrying on of the taxpayer's business". ... In the case of logging these receipts from the non-operation of the business are considered to be... ...

It is your view that capital gain distributions made by a U.S. based mutual fund trust, regardless of whether the trust is considered to be a corporation or a partnership for U.S. tax purposes, should be treated by the Canadian recipient as income from property by virtue of paragraph 108(5)(A) of the Income Tax Act (the "Act"). ... We agree with your view that capital gain distributions made by a W.S. resident mutual fund trust should be included in computing the income of the Canadian beneficiary as income from property pursuant to paragraph 108(5)(a) of the Act provided that the U.S. mutual fund trust is considered to be a trust for Canadian tax purposes, notwithstanding that it may be considered to be a corporation or a partnership for U.S. tax beneficiary would be included in computing the income of the beneficiary under paragraph 104(13)(c) of the Act. ...