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Jones   (613) 957-2104 June 27, 1989 Dear Sirs: Re:  Interpretation Bulletin IT-428 Wage Loss Replacement Plans This is in reply to your request received June 6, 1989 concerning a wage loss replacement plan wherein you requested the Department's opinion on whether a plan would be considered an employee-pay-all plan in the following situation. ...

The comments expressed are not advance income tax rulings and are not considered binding on the Department, in respect of any taxpayer, in accordance with paragraph 21 of Information Circular 70-6R2 dated September 28, 1990. ...

Paragraph 15(2)(b) does not exempt this arrangement since, in our view, the situation described would be considered a "series of loans or other transactions and repayments". ...

We have taken the position that a grant or tax credit received by an employee under a provincial Act relating to an ESOP will not be considered a taxable benefit to the employee.  ...

Citizen This is in response to your verbal enquiry concerning the question as to what amount should be considered to be an "income or profits tax" for purposes of calculating the foreign tax credit ("FTC") in Canada for XXXXXXXXXX The documents indicate the following facts. 1.      ... However, where such credit is not applied for and the resulting tax paid to the United States is greater than that allowed by the Convention such excess tax is considered a voluntary payment and would not qualify as an "income or profits tax" for the purposes of the FTC. ...

In considering the issue of whether a deduction is available under paragraph 8(1)(b) of the Act, one must first determine whether the benefits awarded by the court are taxable under paragraph 6(1)(f) of the Act and whether the insurer is considered to be an employer for the purpose of paragraph 8(1)(b) of the Act. ... A quick glance at the types of remuneration listed in Regulation 100(1) shows that it includes pension payments, unemployment insurance benefits and other amounts which are typically paid by an entity which is not normally considered to be the recipient's employer for the purposes of the Act. ...

It appears to you that subsection 55(2) could apply because the deemed dividends result in a significant reduction in the portions of the capital gains that would have been realized on the dispositions at fair market value of the common shares of AB Co. and the preferred shares of Newco immediately before the dividends that could reasonably be considered attributable to anything other than income earned or realized by the corporations after 1971 and before the series of transactions commenced.  ... 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 interest in any corporation. ...

Generally speaking, a debt obligation is considered to arise whenever a binding liability is created and the principal amount of the liability can be quantified.  ... Any decreases would be applied on a FIFO basis to the earliest loan which in time would be considered disposed of, thus, triggering an anniversary date under subparagraph 12(11) (b) (iii) of the Act.  ...

Accordingly, it may be appropriate to determine whether the Trust is exempt from tax in the United States by virtue of it being considered in the United States to be "a religious, scientific, literary, educational or charitable organization". 3.     Generally, there are considered to be four principal types of charitable trusts, namely: 1)     trusts for the relief of poverty; 2)     trusts for the advancement of education; 3)     trusts for the advancement of religion; and 4)     trusts for other purposes beneficial to the community. ...

.-       Comments in paragraph 5 of IT 145R state that the dyeing of cloth can be considered the processing of goods.  As acid and stone washing would be in the same category as dyeing cloth it is unlikely that the activities could be considered a service rather than processing.-       Paragraph 9 of IT 147R2 states that the manufacturer or processor of the goods need not necessarily be the vendor of the goods.-       The facts in the Dixie X-Ray Associates Limited case can be distinguished from that of the taxpayer in that the case involved taxpayers who were providing a service and no physical goods were sold or leased.  ...