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As provided for in paragraph 66.1(6>(a> of the Act, any expense that may reasonably be considered to be related to a mine that has come into production in reasonable commercial quantities cannot be considered as CEE. ...

OUR COMMENTS Since the situation described in your letter appears to involve actual taxpayers and proposed transactions, that could best be considered by way of an advance income tax ruling request, we are unable to comment on the specifics of the series of transactions described therein. We are of the view, however, due mainly to the fact that there appears to be a clear intention to carry on the family farm business following the move to a rural area, that such a series of transactions would not normally be considered to be a misuse or abuse of the Act as envisioned by section 245 of the Income Tax Act. ...

You have asked whether, in our opinion, a partnership interest in a partnership which owns real property (consisting of land that is capital property) could be considered to be an interest in real property for purposes of subsection 85(1). The determination of whether a partnership interest would be considered to be an interest in real property would depend on all the relevant facts in a particular instance. ...

In our reply of November 3, 1989 to your letter of October 2, 1989, we considered all the situation listed in your letter, including situations 4 and 8, in our comments made in paragraphs 1 through 3. Since the two situations you mention were considered in our reply, we are of the view that no additional comment is warranted. 2. ...

The Department then went on to state that a participation payment will be considered to be interest provided that: • the payment is limited to a stated percentage of the principal;- the limiting percentage reflects commercial interest rates prevailing between arm's length parties at the time the loan is entered into; and • no other facts indicate the presence of an equity investment. ... The criteria used to determine whether a participation payment will be considered to be interest remain unchanged from those stated at the 1989 Corporate Management Tax Conference. ...

In our opinion to the extent that the amount of the separate dividend which is not attributable to income earned or realized by Opco is equal to the amount determined under paragraph 186(1)(b) of the Act it will be considered to be subject to tax under Part IV for the purpose of subsection 55(2) of the Act. Any excess of this separate dividend over the amount determined under paragraph 186(1)(b) of the Act would not be considered to be subject to tax under Part IV. ...

Your particular concern is that if the leasehold is considered to be inventory and is also considered to be real property that a rollover under subsection 85(1) of the Act could not be carried out. ...

30 October 1989 Income Tax Severed Letter RCT 5-8818 Unedited CRA Tags 54(b), 80(1), 13(1), 248(1) Dear Sirs: We are writing in response to your letter of September 28, 1989 wherein you requested our view on whether, for purposes of subsection 80(1) of the Act, "cash" would be considered capital property within the meaning assigned by paragraph 54(b) of the Act. ... It is therefore, our opinion that, for purposes of subsection 80(1) of the Act, money in Canadian currency would not normally be considered capital property within the meaning assigned by paragraph 54(b) of the Act. ...

You have expressed the view that the retainer should be included in income by virtue of Section 9 of the Income Tax Act if it can be determined that the XXX can be considered as carrying on a business for profit or with a reasonable expectation of profit. ... Per diem allowances received by a XXX are not required to be included in income unless, as you noted above, the XXX can be considered as carrying on a business for profit or with a reasonable expectation of profit. ...

When such an agreement does not exist, the payment could, subject to our comments below, properly be considered a retiring allowance. ... All factors must be considered together to arrive at a conclusion. XXX ...