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Your concern is that subsection 256(1.4) of the Act would be applicable to the above situation and as such it could be argued that each shareholder could be considered to have a right to acquire the shares of the other shareholders and therefore, Company A would be associated with any corporation controlled by another shareholder. ... As stated in Interpretation Bulletin IT-64R2 "shareholder agreements commonly referred to as "the right of first refusal" are considered not to confer a right to acquire a share but rather an option to acquire, in certain future circumstances, a right to acquire a share". ...

In determining whether the rate is a rate which would exempt the loan from the provisions of section 80.4, all the circumstances surrounding the loan including the terms and conditions of the loan must be considered. While the employment of an individual or lack thereof would be a factor to be considered in determining whether an individual was a good risk for a loan and thus a preferred customer, it is our understanding that this factor alone is not sufficient to consider an individual to be a preferred customer entitled to a loan at the prime rate of interest.  ...

Thus, a conversion would not be considered to "settle" or "extinguish" the debt. 2.      ... The conversion of the debt is considered to settle or extinguish the debt. ...

Whether or not any such avoidance transaction could reasonably be considered not to result, directly or indirectly, in a misuse of any provision of the Act or an abuse having regard to the provisions of the Act read as a whole, and would thus be exempt from the application of GAAR by virtue of subsection 245(4) of the Act, cannot be determined without a review of all of the relevant facts and circumstances. In our view, the interposition of a holding corporation to receive the proceeds of sale of shares to a non-arm's-length corporation would ordinarily not, in and by itself, be considered to result in a misuse of any provision of the Act or an abuse having regard to the provisions of the Act read as a whole.  ...

2 July 1991 Ruling 911203 F- Disposition of Securities- Income vs Capital Unedited CRA Tags 85 24(1) 19(1) Re: Disposition of Securities- Income vs Capital This is in reply to your memorandum of April 17, 1991, requesting our opinion as to whether the   24(1)   by the taxpayers named above should be considered on behalf of income or capital. ... The facts also seem to support the view that an investment was contemplated, Consequently, it is our opinion that the taxpayer should not be considered a trader and the transactions are properly reported on account of capital. ...

Our Comments It is the Department's view, as indicated in paragraph 4 of IT-239R2, that a taxpayer is considered to have acquired the debt at the time the guarantee is honoured (paid) rather than at the time he becomes aware of his obligation to honour it. ... It should be noted that where a shareholder has guaranteed the debts of his corporation for no consideration, the guarantee will generally be considered not to have been given for the purpose of gaining or producing income. ...

However, a loan would not be subject to these requirements if it were considered to be unconditionally repayable. ... Whether or not a loan can be considered to be unconditionally repayable depends on a finding of fact and would require an examination of the particular loan agreement and surrounding circumstances. ...

Advice relating to the purchase of specific investments or the promotion of a particular investment strategy is not considered to be retirement counselling. ... In our view the counselling services outlined in these documents would be considered to be financial counselling services and not retirement counselling services as envisioned by clause 6(1)(a)(iv)(B) of the Act. ...

Why then does the IT bulletin expand and explain capital treatment approaches in subsequent paragraphs if the Department does not considered such approaches valid? ... If it does then the lease cancellation payment will be considered to be business income and included in income under section 9 of the Act. ...

Tremblay   957-2095   File No. 900823 Subject: 24(1)  as Agents of the Crown This is in reply to your memorandum of May 17, 1990, wherein you request our opinion as to whether gifts made to the 24(1) a registered charity, are considered allowable deductions under section 118.1 or paragraph 110.1(1)(b) of the Income Tax Act (the "Act"). ... Furthermore, in order for a particular entity to be considered such an Agent of the Crown, the law creating the entity must expressly make it an Agent of the Crown or it must be an Agent of the Crown at common law. ...