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It is our view that where cash is temporarily surplus to the needs of a business and is invested in short-term income-producing investments, those investments may be considered to be used in the business.  On the other hand, where substantial amounts of cash and deposits- in excess of that required for use in the business, are retained in the corporation on a permanent basis, they would not be considered to be funds used in the business.  Such funds would be considered to be permanently set aside for investment or uses other than in an active business.  ...

In such circumstances the departing spouse would not be considered to have severed his residential ties with Canada.  ... " Paragraph 8  "If married individual leaves Canada, but his spouse or dependants remain in Canada, the individual will generally be considered to remain a resident of Canada during his absence. ... In such a situation the resident spouse could, for the purpose of computing his eligibility for the CTC, be considered to be residing with his non-resident spouse. ...

BUSINESS INCOME IS CONSIDERED EARNED INCOME UNDER THE ACT WHEREAS BENEFITS OF THIS NATURE RECEIVED BY EMPLOYEES IS NOT. ... NCARP benefits reported by self-employed fisherperson, on the other hand, are considered earned income for the annual $500 working income supplement. ... However, the benefits are considered to be earned income for self- employed fisherpersons. ...

A Band may be exempt from income tax on any income that it earns if the Band can be considered to be a public body performing a function of government or a Canadian municipality. Details regarding a particular Band and its functions would need to be considered to determine whether it may be considered to be exempt. ... In order for an organization to be considered resident on a reserve, the central management and control, or mind and management, over the organization would have to be exercised on a reserve. ...

As an alternative, you suggest that if such multi passenger pick-up trucks are to be considered passenger vehicles they should not be limited to the current capital cost amount of $26,000. ... It is Revenue Canada's view that the extended cab trucks are considered to have seating capacity for more than the driver and two passengers and it will, therefore, be a determination of fact based on the use of each particular extended cab truck, in the year it was acquired, whether that vehicle fits within the subparagraph (e)(ii) exclusion in order that it not be considered a passenger vehicle that falls within class 10.1 for capital cost allowance purposes. ... Since tax policy issues and amendments to the legislation are the responsibility of the Department of Finance, they would have to be considered by that Department. ...

Our Comments It is our view that where cash that is temporarily surplus to the needs of a business is invested in short-term income-producing investments those investments may be considered to be used in the business. Where on the other hand substantial amounts of cash and deposits which are obviously in excess of that required for use in the business are retained in the corporation on a permanent basis, they would not be considered to be funds used in the business.  Rather such funds would be considered as permanently set aside for investment or non-qualified uses (i.e. uses other than in an active business). ...

If the vehicle is not considered an "automobile", you may refer to the comments in paragraph 13 of IT-63R3 for information on the method of determining the taxable benefit. ... On the other hand, if the employee is not entitled to claim expenses in respect of an office in the home, the residence would not be considered his settled place of work.  ... However, in both of these situations, travel between business locations of customers is not considered to be travel of a personal nature. ...

Generally, a farming activity will be considered a source of income from a business if it is carried on with a reasonable expectation of profit. ... Interpretation Bulletin IT-322R, Farm Losses, a copy of which is enclosed, sets out some of the criteria that are considered in determining whether a farming operation is a business, and comments on the deductibility of farm losses. ... Accordingly, even if raising race horses were considered to be a sporting activity, the income it generates might be taxed as business income, to the extent that the activity has the characteristics of a business and is not solely a hobby. ...

The Queen, 92 DTC 6320, employment income was considered to be situated at the location of the employer. Related payments, such as pension income including Canada Pension Plan benefits, were considered to be located at the payer's principal place of business. As the federal government is not situated on the reserve, any benefits which it pays, such as Canada Pension Plan benefits, were considered taxable to the recipient. ...

The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization. ... " Where an organization which would otherwise not be considered to be resident on a reserve is asserting that it satisfies the definition because it holds its board of directors meetings on a reserve, it should generally be considered to satisfy the definition where management and control over the organization is legitimately exercised during those meetings. ... In addition, in our view, the fact that the board of directors meetings are held on different reserves would not, in and by itself, cause an organization to not be considered resident on a reserve. ...