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Francis Sections: 41, 42, 44 Financial Difficulty Rulings This to advise that the following additional rulings, if requested, are now considered "standard" rulings for financial difficulty rulings: 1.      ... Provided that the Debt arose from one or more loans made by the SFI in the course of its money lending business, the Debt reacquired by the SFI will be considered to have been acquired by the SFI in the ordinary course of its business of lending money for purposes of paragraphs 20(1)(l) and 20(1)(p) of the Act. 3.      ...

Would the land and building be considered to have been "used in an active business" from the date of acquisition to the date of occupancy? ANSWER The Department is of the opinion that, where land is acquired and a building is constructed for use in an active business which will be expanding or relocating to the new facility, and the new facility is in fact used in the active business within a reasonable period of time after completion and not for any other purpose, the land and building in question would be considered to have been used in an active business from the date of acquisition to the date of occupancy. ...

Production in reasonable commercial quantities      21(1)(b)      Therefore, only expenditures incurred BEFORE a mine has achieved production in reasonable commercial quantities can qualify as CEE.      21(1)(b) 2.     21(1)(b)      As provided for in paragraph 66.1(6)(a) of the Act, any expense that may reasonably be considered to be related to a mine that has come into production in reasonable commercial quantities cannot be considered as CEE.      21(1)(b) 3.       ...

A proper 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 or not any of the issues involved are to the best of the 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.  ...

Principal Issues: (1) Whether the Taxpayers would be considered carrying on business in Canada. (2) Whether the Taxpayers would be considered carrying on business in Canada through a permanent establishment, as defined under the relevant income tax conventions. ... The Taxpayers will be considered to be carrying on business in Canada in their respective taxation years during which their Assigned Employees are providing Services from the Province. ... Taxpayer A will not be considered to be carrying on business in Canada through a permanent establishment, as defined in Article 5 of the Canada Treaty with Country A, solely as a consequence of Services provided by the Assigned Employees from the Province as described in the Transactions. ...

For purposes of the Act: (i) Finco will be considered a corporation; (ii) the ownership interests in Finco will be considered shares of Finco; and (iii) distributions of Finco's profits to its equity holder(s) will be considered dividends. ... For purposes of the Act: (i) Forco2 will be considered a corporation; (ii) the ownership interests in Forco2 will be considered shares of Forco2; and (iii) distributions of Forco2's profit to its equity holder will be considered dividends. ... For purposes of the Act: (i) Opco will be considered a corporation; (ii) the ownership interests in Opco will be considered shares of Opco; and (iii) distributions of Opco's profit to its equity holder(s) will be considered dividends. ...

The two groups of shares will be considered to be two classes of shares because they have different rights attached to them. 2. ... 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 is: (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 share capital of FA will be considered to consist of two classes of shares, one class being those shares denominated in US$ and the other class being those shares denominated in €€. ...

The issue is twofold: can the Society be considered a "public body" and can it be considered to be "performing a function of government". ... Reasons: Based on the facts, the Society can be considered a public body and, since it is involved in negotiating a treaty, among other things, it can be considered to be "performing a function of government" pursuant to our established policy in this regard. ... To the best of your knowledge and that of the Society, none of the issues involved in the ruling request is: i. in an earlier return of the Society or a related person; ii. being considered by a tax services office or a tax centre in connection with a tax return already filed by the Society or a related person; iii. under objection by the Society 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 to the Society or a related person. ...

Are XXXXXXXXXX generated by XXXXXXXXXX of XXXXXXXXXX and XXXXXXXXXX under the Plan considered to be income from a source? ... XXXXXXXXXX directs the XXXXXXXXXX on where to transfer the XXXXXXXXXX so that it may be considered that the XXXXXXXXXX "paid" the amount as required in the definition of "premium" in subsection 146(1). ... (k) "Qualified Investment" means any investment which would be considered to be a "qualified investment" as that term is defined in subsection 146(1) of the Act. ...

Generally, all pulp mills are considered to be initial processing operations in a resource-based industry and thus do not qualify.  ... Where a pulp mill produces some pulp for market and the rest is used by the taxpayer for conversion into paperboard or paper other than newspaper, it is necessary to segregate the capital costs of the property relating to the integrated paper operation, which are considered to be part of a "facility", from those costs relating to the market pulp operation which are considered to be part of a  "facility". 5)     In order for equipment of an oil well service company such as Halliburton Services Ltd. to qualify as "certified property", it would have to be part of a "facility".  ... None of the exceptions listed in the definition are considered to apply to oil and  gas in situ plants. ...