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As the corporation's shareholders want to ensure that their shares will at all times qualify as "qualified small business corporation shares", you inquire whether these cash balances would be considered to be assets used principally in an active business. ... The relevant circumstances include the actual use to which the cash or near cash properties are put in the course of the business, the nature of the business and the practice in the particular business. 2.Cash or near cash property is considered to be used principally in the business if its withdrawal would destabilize the business. 3.Cash which is temporarily surplus to the needs of the business and is invested in short-term income producing investments could be considered to be used in the business. 4.Cash balances which accumulate and are then depleted in accordance with the annual seasonal fluctuations of an ongoing business will generally be considered to be used in the business but a permanent balance in excess of the company's reasonable working capital needs will generally not be considered to be so used. 5.The accumulation of funds in anticipation of the replacement or purchase of capital assets or the repayment of a long-term debt will not generally in itself qualify the funds as being used in the business. 6.Cash or near cash property is considered to be used principally in the business if its retention fulfils a requirement which had to be met in order to do business, such as certificates of deposits required to be maintained by a supplier. 7.The Department recognizes that prudent financial management requires businesses to maintain current assets (including inventories and accounts receivables, as well as cash and near cash properties) in excess of current liabilities and will consider this requirement in assessing whether cash or near cash assets are used principally in a business. In the Department's view, cash and near cash assets held to offset the non-current portion of long term liabilities will not generally be considered to be used in the business. ...

In certain factual circumstances, it is considered that "farming" includes raising fish, market gardening and the operation of nurseries and greenhouses. ... Hence, the cultivation of crops in water and hydroponics or the process of growing plants in sand, gravel, or liquid, without soil and with added nutrients, are considered to be farming activities for the purposes of the Act. ... Normally, a taxpayer will be considered to operate two separate businesses if the businesses are not so interlaced, interdependent and interconnected that it is virtually impossible to separate one operation from the other. ...

Principal Issues: If a corporation that owns several apartment buildings is considered an "active business" and the rental income derived from the apartment buildings is considered "income of the corporation for the year from an active business", if one of these properties is disposed of, can it be considered a former business property for purposes of the replacement property rules? ... Further, the rental income derived from the apartment buildings is considered "income of the corporation for the year from an active business", as defined in subsection 125(7) of the Act. In your view, if one of these properties is disposed of, it should be considered a former business property for purposes of the replacement property rules in sections 13 and 44 of the Act because the rental income earned is considered active business income of the corporation. ...

To be considered a replacement for a former property, a particular property must meet all of the requirements outlined in subsection 44(5) of the Act. ... Question 2 Does the newly acquired properties have to be located in Canada to be considered a replacement property for the former business property? ... Of course, each property must meet all of the requirements in subsection 44(5) of the Act to be considered a replacement property. ...

It is the department's view that a gift is considered to be made at the time the property which is the subject of the gift is actually received by the qualified donee. With respect to a gift of shares, the time at which the ownership of a share is considered to have been transferred from one person to another, is a question of fact. ... Since the facts we have indicate that the foundation had the incidents of ownership as of XXXXXXXXXX, we would be of the view that the latest possible time that the foundation would be considered to have received the shares and therefore the latest possible time at which the "gift" provided for under the will would be considered to have been made was XXXXXXXXXX. ...

These particular trips are generally considered to be employment-related. ... Accordingly, travel from home to this site would, likely, be considered personal. ... However, notwithstanding the earlier work-related stop, travel home from the office at the end of the day, will still be considered personal. ...

The balance of any foreign taxes would be considered to apply to the non-taxable half of the gain and be deducted from exempt surplus. ... While tax credits are not considered as taxes paid, they should first be considered to apply to the taxes on income to which they relate. For example employment tax credits and investment tax credits for investing in assets to be used in an active business should first be considered to apply to reduce taxes on active business income and only considered to reduce taxes on FAPI to the extent they are used to do so after taxes on active business income are eliminated. ...

The balance of any foreign taxes would be considered to apply to the non-taxable half of the gain and be deducted from exempt surplus. ... While tax credits are not considered as taxes paid, they should first be considered to apply to the taxes on income to which they relate. For example employment tax credits and investment tax credits for investing in assets to be used in an active business should first be considered to apply to reduce taxes on active business income and only considered to reduce taxes on FAPI to the extent they are used to do so after taxes on active business income are eliminated. ...

c) What is considered to be a temporary work assignment and when does a work assignment stop being temporary? ... In fact, he would be considered to be resident there until such time as he could be considered resident elsewhere. ... Questions a) Where is the husband considered to ordinarily reside during the five month work assignment? ...

In Rulings document 2000-0025183 (XXXXXXXXXX, 2000), the following activities were not considered to detract from a conclusion that production services activities were the taxpayer's primary business on the basis that they were provided in connection with production services: XXXXXXXXXX. ... Accordingly, we considered whether paragraph 125.5(2)(d) applies so that advertising and similar activities will be considered to be part of a business that is different from a "film or video production services business" for purposes of the "eligible production corporation" definition. ... Whether such expenditures would be considered to be part of a production or video services business remains, ultimately, a question of fact. ...