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., would the periodic interest be considered "participating debt interest. ... Since a contingent amount would not be considered "payable," until an additional payment is paid or becomes payable, the periodic interest would not be considered participating debt interest. However, once an additional payment is paid or becomes payable, the periodic interest on such obligation would be considered participating debt interest from that point of time onwards. ...

Lot 1 and Lot 2 will each be considered a former business property of ACO, pursuant to the definition thereof in subsection 248(1) of the Act. ... Lot 1 and Lot 2 will each be considered a former property of ACO, for purposes of subsection 44(1) of the Act. ... Lot 5 and Lot 6 will each be considered a replacement property for the XXXXXXXXXX acres of Lot 1 rented to BCO, as set out in paragraph 32(a) above; and b. ...

Could be considered as non-taxable damages or, arguably, Indian property pursuant to paragraph 90(1)(b) of Indian Act as it appears to be paid in lieu of treaty rights. Alternatively, may be considered income to the Band, which is exempt under par.149(1)(c); (3) The Band may be considered to have indirectly or constructively received the Settlement Funds and contributed them in the Trust. ... CAVEATS Nothing in this advance income tax ruling should be construed as implying that we have considered: (i) whether the First Nation is a Canadian municipality (we have not been asked to consider this nor have we attempted to make such a determination), and (ii) the tax consequences of holding property pursuant to subparagraph 8(b) of the Trust Agreement, or property substituted therefor, XXXXXXXXXX. ...

Whether XXXXXXXXXX can be considered to be a municipality in Canada for the purposes of paragraph 149(1)(c) of the Income Tax Act. ... The court determined that if the First Nation is "a community having and exercising powers of self government and providing the type of service customarily provided by such a body", then it can be considered to be a municipality. ... Accordingly, the Settlements could be considered to be municipalities in Canada for the purposes of paragraph 149(1)(c) of the Act such that any income that they earn could be exempt from tax under Part I of the Income Tax Act. ...

2006 Ruling 2006-0173601R3- Permanent establishment Unedited CRA Tags XXXXXXXXXX the Canada-XXXXXXXXXX Tax Treaty Principal Issues: (1) Whether the activities carried on by the Foreign Bank in Canada, through a Representative Office, can be considered to have a preparatory or auxiliary character for the purposes of the XXXXXXXXXX treaty PE Article? ... Other information (11) To the best of your knowledge and that of Foreign Bank, none of the issues involved in this ruling request: (i) is in an earlier return of the Foreign Bank or any related person; (ii) is being considered by a Tax Services Office or Taxation Centre in connection with a previously filed tax return of the Foreign Bank or a related person; (iii) is under objection by the Foreign Bank or a related person; (iv) is before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, or (v) is the subject of a ruling request previously considered by the Income Tax Rulings Directorate. ... The activities of the Representative Office will be considered to be activities of a preparatory or auxiliary character for the purposes XXXXXXXXXX of the Treaty and accordingly, the Representative Office will be deemed by XXXXXXXXXX the Treaty not to constitute a permanent establishment of the Foreign Bank in Canada for the purposes of the Treaty. ...

3) Is the 10% additional US tax payable on the early withdrawal from a 401(k) plan considered a non-business-income tax as defined by subsection 126(7) of the Act? ... We understand that to the best of your knowledge and that of the above-noted taxpayer, none of the issues involved in this advance income tax ruling are: (i) in an earlier tax return of the above-noted taxpayer or of a related person; (ii) being considered by a Tax Services Office or a Taxation Centre in connection with a previously-filed tax return of the above-noted taxpayer or of a related person; (iii) under objection by the above-noted taxpayer or by a related person; (iv) before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired; or (v) the subject of a ruling previously considered by the Income Tax Rulings Directorate in connection with the above-noted taxpayer or a related person. ... The Individual is not a US citizen nor considered to be a former long-term resident of the US. 3. ...

Reasons: Payment for distribution rights in this case are considered copyright royalties as the right to distribute is viewed as a component of the right to reproduce the software or is ancillary to such a right. ... Pursuant to XXXXXXXXXX, Forco is considered a "tax exempt organization" in XXXXXXXXXX for income tax purposes. 2. ... For greater certainty, the CRA has not considered, confirmed or made any determination in respect of: (a) any additional fees that may be contemplated under the Agreement; (b) any income tax considerations associated with Forco's branch operations in Canada; and (c) whether or not subsection 247(2) of the Act applies to any transactions between Forco and Canco as described in the facts or proposed transactions of this letter. ...

2006 Ruling 2005-0160521R3- Provincially established- Public body Unedited CRA Tags 149(1)(c) Principal Issues: Would the particular corporation be considered a public body performing a function of government for purposes of paragraph 149(1)(c) of the Act? ... We understand that, to the best of your knowledge and that of the taxpayer, none of the issues involved in the ruling request is: (i) in an earlier return of the taxpayer or a related person, (ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or a related person, (iii) under objection by the taxpayer or a related person, (iv) before the courts, or (v) the subject of a ruling previously issued by the Directorate to the taxpayer or a related person. ... The purpose of the proposed transactions is to provide economic development and foster job opportunities to people of XXXXXXXXXX RULING GIVEN Provided that the preceding statements constitute a complete and accurate disclosure of all of the relevant facts, proposed transactions and purpose of the proposed transactions, we rule as follows: Because the Corporation is considered a public body performing a function of government in Canada within the meaning of paragraph 149(1)(c) of the Act, and therefore exempt from tax under Part I of the Act, no tax will be payable under Part I of the Act by the Corporation on any amounts included in its income as a result of the proposed transaction described in 17 above. ...

We understand that, to the best of your knowledge and that of the taxpayers involved, none of the issues involved in the ruling request is: (i) in an earlier return of the taxpayers or related persons, (ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayers or related persons, (iii) under objection by the taxpayer or a related person, (iv) before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, and (v) the subject of a ruling previously issued by the Directorate. ... We confirm that: i. the directors fees described in paragraph 12 above will not be considered employment income of the Employees, and will not be included in their income pursuant to subsection 5(1) or paragraph 6(1)(c) of the Act, and ii. the directors fees described above will be included in the business income of LP1 or LP2, as the case may be, when paid to the Employees by Investco, pursuant to subsection 9(1) of the Act. ... We further confirm that: i. the stock options described in paragraph 12 above will not be considered employment income of the Employees, and will not be included in their income under subsection 5(1) or section 7 of the Act, and ii. when the stock options described above are exercised, LP1 or LP2, as the case may be, will be considered to have received business income pursuant to subsection 9(1) of the Act equal to the excess of the fair market value of the underlying securities at the time the option is exercised, over the exercise price of the option. ...

We understand that to the best of your knowledge, and that of the taxpayers involved, none of the matters considered in this ruling request are: a) in an earlier return of the taxpayers or related persons; b) being considered by a tax services office or tax centre in connection with a previously filed tax return of the taxpayers or related persons; c) under objection by the taxpayers or related persons; d) before the courts; or e) the subject of a ruling previously issued by this Directorate to the taxpayers or related persons. ... For purposes of subdivision k of division B of Part I of the Act, no new trust will be considered to have been created as a result of the completion of the proposed transactions and the Trusts will be considered to continue. ...