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9 November 1989 Ruling 58821 F- Acknowledgement Unedited CRA Tags n/a 19(1) File No. 5-8821   Bob O'Bryne   (613) 957-8821 November 9, 1989 Dear Sirs: 24(1) This will acknowledge your letter of October 4, 1989 in which you provided a brief summary of some of the facts which you think should be considered when reviewing the 24(1) case. The contents of your letter will be considered as part of our review of this case. ...

The basis for this position is as follows: (1)       The Financial Administration Act revers only to the remission of "tax, fee or penalty" in section 23. (2)       Based on an informal legal opinion obtained some 15 years ago, it was indicated that there was legal support for the view that interest could properly be considered as a "tax" for purposes of section 17 (now 23) of the F.A.A. (3)       Since in economic terms interest charges can be considered to be compensation payable by the taxpayer to the government for use of funds that are rightfully the government's once a tax debt becomes due, collection of interest charges was not considered an unfair burden to a taxpayer in cases where it was accepted that the tax debt upon which it was based was legitimate. ...

They will be ignored for purposes of determining the types of property of DC until the resolution of the objections; h) The balance of any unamortized amounts relating to the DC Plan shown on DC’s balance sheet for accounting purposes (as described in the second part of Paragraph 29.3) will not be considered property. 16. ... For greater certainty, any contingent obligations of DC will not be considered a liability. For the purpose of Paragraph 73, the amounts described in Subparagraph 73 j) will be considered a true legal liability which is capable of quantification, and not a contingent liability. ...

Will a passive rental property be considered to be used in the business of a sole proprietor?  ... Each of the corporations would be considered to have disposed of their partnership interests at the fair market value thereof.  ... Where the transaction is considered to be at non arm's length the provisions of subsection 1100(2.2) of the Regulations may be available. ...

We have been asked whether a settlement arrangement will still be considered a structured settlement, as contemplated in IT-365R2, if the annuity contracts referred to above were commutable after the death of the claimant. ... Accordingly, under such an arrangement, the payments remaining under the guarantee period must not be capable of commutation in the event of the death of the claimant during such guarantee period in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. With respect to the annuity contract to fund the care element under a settlement arrangement, such contract must be non-commutable during the life of the claimant in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. ...

Such a request entails the provision of all related documents for our review as well as an identification of all of the specific provisions of the Income Tax Act (the "Act") in respect of which the request is to be considered.  A ruling request must also contain a statement as to whether any of the issues involved are to the best of a taxpayer's knowledge being considered by a District Office and/or Taxation Centre in connection with a tax return already filed, or if any of the issues are under objection. ... If the amount is in satisfaction of an obligation by the  employer to the employee arising as a result of his employment, the amount is usually considered employment income unless it can be considered a retiring allowance.  ...

Will the general partners be considered limited partners by virtue of paragraph 96(2.4)(b) of the Act for the purposes of the "at-risk rules" in subsection 96(2.2) of the Act? ... Consequently, the general partners of that partnership would not be considered limited partners by virtue of paragraph 96(2.4)(b) of the Act.  ... Therefore, the general partners will be considered to be limited partners by virtue of paragraph 96(2.4)(b) of the Act. ...

Further, please comment on whether control would be considered to be acquired by a "group" of persons for the purposes of subsections 111(4) and (5) in the following situations: (a)     If an arm's-length lender acquires shares of a corporation for the purpose of securing a loan, when would the lender be considered to be part of a "group" controlling the corporation? ... In response to your specific questions: (a)     Whether the lender would be considered to be part of a group that controls the corporation would depend on the circumstances of the particular situation, including the percentage of shares owned by the lender, who the other shareholders are, the relationship between the lender and the other shareholders, etc.. ... (d)     If A Co and C Co act in concert to control Opco, they would be considered to be a group of persons that had acquired control of Opco. ...

Leung   (613) 957-2116 June 2, 1989 Dear Sirs: Re:  Source of income for purpose of Subsection 126(1) of the Income Tax Act (Canada) (the Act) This is in reply to your letter of March 3, 1989 wherein you requested our opinion as to whether the consideration to be received by your client with respect to a non-competition agreement would be considered foreign source income for purposes of subsection 126(1) of the act in the following situations: 1.      ... You requested our opinion as to whether or not the consideration received with respect to the non-competition agreement would also be considered U.S. source income for purposes of that subsection. ... Since the shares of the U.S. subsidiary will not be sold through a securities or stock exchange, other factors, such as the place where negotiations and execution of the agreement took place, location of the shares, place of payment and any relevant provisions in the governing corporation statutes, would have to be considered in order to establish the place where the sale occurs. ...

Principal Issues: Whether the land owned by a taxpayer is considered to be "qualified farm property"? ... Some of the criteria which should be considered in making this determination are set out in Interpretation Bulletin IT-322R. ... A review of all of the facts would be required to conclusively resolve whether the Property may be considered "qualified farm property" of Mrs. ...