Search - considered

Are related parties considered third parties? What constitutes an "enterprise" for purposes of subparagraph 9(b) of Article V of the Treaty? ... Paragraph 2 of the General Note provides that for purposes of subparagraph 9(b), projects shall be considered to be connected if they constitute a coherent whole, commercially and geographically. ... Question 3 A2 Part II: A related person in reference to a particular person is considered a "third party" for purposes of paragraph 9 of Article V of the Treaty. ...

Cash or near cash property is considered to be used principally in the business if its withdrawal would destabilize the business. 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. 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. ...

Position: A) Yes but the portion of the tax paid that can be considered applicable to a dividend is a question of fact. ... Our Comments In accordance with Interpretation Bulletin IT-392, the LLC is considered to have capital stock consisting of 100 issued shares and each owner of an interest in the LLC is considered to own the number of shares proportionate to its interest in the LLC. Each amount distributed on account of profits by LLC will be considered dividends for the purposes of the Act. ...

Principal Issues: Whether land owned by taxpayers is considered "qualified farm property"? ... Whether a property is considered to have been used in the course of carrying on the business of farming is dependent on when the property was last acquired by the individual. ... Some of the criteria which should be considered in making this determination are set out in Interpretation Bulletin IT-322R. ...

Our Comments If the terms of the contract and the actual facts indicate that the payment for such service is not considered to be part of the computer software license fee, withholding under Regulation 105(1) would not be required since that service is not considered to constitute the rendering of services in Canada. ... Corporation and you should withhold Part XIII tax on any portion of a payment that is considered to be part of the computer license fee with the U.S. ... We have attached a copy of Information Circular 75-6R which outlines the conditions under which such a waiver would be considered (see paragraphs 10 to 16).  ...

If the payments for services are not considered to be part of the computer software license fee, they could still be subject to a 155 withholding tax under subsection 105(1) of the Regulations if the services are rendered in Canada by the non-resident person. ... Our Comments If the terms of the contract and the actual facts indicate that the payment for such service is not considered to be part of the computer software license fee, withholding under Regulation 105(1) would not be required since that service is not considered to constitute the rendering of services in Canada. ... We have attached a copy of Information Circular 75-6R which outlines the conditions under which such a waiver would be considered (see paragraphs 10 to 16). ...

Our Comments If the terms of the contract and the actual facts indicate that the payment for such service is not considered to be part of the computer software license fee, withholding under Regulation 105(l) would not be required since that service is not considered to constitute the rendering of services in Canada. ... Corporation and you should withhold Part XIII tax on any portion of a payment that is considered to be part of the computer license fee with the U.S. ... We have attached a copy of Information Circular 75-6R which outlines the conditions under which such a waiver would be considered (see paragraphs 10 to 16). ...

As is noted in the T1 Guide, that continuity is not considered to be broken by short term absences from the prescribed area such as vacations and temporary work assignments. ... His apartment in the prescribed area would not, in our view, be considered a place where he customarily lives. ... As discussed in c) above such an individual would be considered resident in the prescribed area until such time as his absence can no longer be considered temporary. ...