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In our view separate agreements would be necessary in order for the payment to the U.S. purchaser by the Canadian subsidiary to be considered to be for the outright assignment of the license such that subparagraph 212(1)(d)(i) of the Act would not apply. ...

Response: A buy-sell agreement that does not represent a reasonable estimate of fair market value of the shares at the time the agreement was entered into will not be considered determinative of value.  ...

As indicated above, the opinions expressed herein are not advance income tax rulings and in accordance with paragraph 24 of Information Circular 70-6R are not considered binding on the Department. ...

In respect of your second scenario you stated that it has been suggested, by analogy, that if subsection 70(6.1) deems a trust to be created by virtue of the deceased's will where a court order under the FLA actually creates a trust, then an FLA court order transferring property directly to the surviving spouse should be considered a transfer to the spouse under the will, and asked if this was a correct interpretation and if, in consequence, the property transferred would be eligible for treatment under subsection 70(6) of the Act. ...

Our Comments In order for the partnership to be considered to be a tax shelter, one must regard "statements or representations made or proposed to be made in connection with the property," according to the definition of tax shelter in subsection 237.1(1).  ...

Dividends received by an NPO, the main purpose of which is to provide, dining, recreational or sporting facilities for its members, would be considered property income includable in income under subsection 149(5) of the act. ...

This view is consistent with the following comments contained on page 94 of the paper presented by John Robertson of Revenue Canada, Taxation at the 1981 Canadian Tax Foundation Conference:       "Where a person or persons incorporate new companies and the incorporation of these companies is involved in the series of transactions that include the payment of dividends, their interest in the new corporation will be considered as an increase in the interest in any corporation. ...

(ii)     A farmer who maintains a breeding herd in a region, whether or not he actually owns the land where the herd is located and whether or not he personally cares for the breeding herd, may be eligible for a deduction, pursuant to subsection 80.3(4) of the Act if the region is a prescribed drought region at any time in the year provided that the farmer could be considered to be carrying on a farming business in the region. ...

An investment may make economic sense but the interest expense would not be considered to have been expended for the purpose of producing income from property or business in the year in question and therefore not deductible in circumstances where the amount of the interest is expected to be in excess of the partner's share of partnership income.  ...

On the assumption that the source of funds used by the Association to make these payments were the funds received from the Ministry, it is also our view that the caregiver can be considered to have "indirectly" received the room and board payments from the Ministry on the basis that the caregiver provided the patient with food and shelter. ...