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7 January 2011 External T.I. 2009-0351591E5- SIFT Normal Growth- replacing debt of subsidiary Unedited CRA Tags 122.1(2) Principal Issues: Whether the replacement of a subsidiary's debt o/s at Oct 31, 2006 with new equity issued by the parent (SIFT) is considered growth for the purposes of 122.1(2)? ... The third bullet of paragraph 8 of the Guidelines states, "Replacing debt that was outstanding as of October 31, 2006 with new equity, whether through a debenture conversion or otherwise, will not be considered growth for these purposes. ... Therefore, the trust's issuance to the public of new equity or convertible debentures, to repay the debt of its subsidiary corporation, will be considered growth for the purposes of determining whether the trust exceeds normal growth. ...

Position: Payments are considered employment income. Reasons: Pension benefits continue to accrue to the employees. Therefore, an employment relationship exists and payments are considered to be employment income. ... To be considered a retiring allowance there must be a connection between the loss of employment and the subsequent receipt of the allowance. ...

Reasons: The shares or the interest would not be considered to derive their value principally from real property for purposes of the Treaty if no real property is held by the corporation or the trust at the time of the disposition. ... It should be noted though that if the real property was disposed of by the corporation or the trust at any time during the 60 months preceding the disposition of the shares of the corporation or the interest in the trust, such shares or the interest, respectively, would still be considered taxable Canadian property for purposes of the Act. As a result, certain rules in section 116 of the Act should be considered, despite the fact that a gain arising on the disposition of the shares or interest, respectively, could be ultimately exempt from Canadian tax by operation of the Treaty. ...

However, draperies or curtains would generally not be considered to be fixtures and therefore will not qualify for the HRTC. ... As a general rule, items that are considered fixtures would be eligible. ...

If the taxpayer were to land in Canada at Toronto Pearson Airport in the morning and leave on a return flight to the UK that evening, would this be considered a day for the purposes of paragraph 250(1)(a) of the Act? ... No Reasons: The taxpayer is not considered to be sojourning for the purposes of paragraph 250(1)(a). ... If the taxpayer were to land in Canada at Toronto Pearson Airport in the morning and leave on a return flight to the UK that evening, would this be considered a sojourning day for the purposes of paragraph 250(1)(a) of the Act? ...

3 September 2008 External T.I. 2008-0280951E5- Designated Stock Exchange Unedited CRA Tags 204 Principal Issues: Would an investment in a limited partnership unit by an RRSP trust be considered a qualified investment for purposes of the RRSP legislation where the particular units are listed as an investment fund on the Irish Stock Exchange? ... Further, as we discussed with you in early July (Duval/XXXXXXXXXX), we cannot confirm whether or not a particular security listed as an "investment fund' on the Irish Stock Exchange would be considered "a security listed on a designated exchange" for purposes of the Act. ... As such, we would suggest you contact the Department of Finance directly in this matter, as they are responsible for determining whether or not any stock exchange or where a stock exchange operates more than one tier, which tier would be considered "designated" for purposes of the Act. ...

Whether the guarantee fee received would be considered employment or other income of the shareholders. 2. ... Guarantee fees received by a shareholder from the corporation will generally be considered income with respect to services rendered. 2. ... You enquired as to whether the guarantee fee received would be considered employment or other income of the shareholders. ...

Where an employee is required to include an amount in income as or on account of the benefit derived from employer assistance with child care, the amount of the benefit included in income will be considered to be an amount paid on account of child care for the purpose of determining the eligible costs under section 63 of the Act. ... It is our view that where a personal expense is paid directly by an employer, the employee will normally be considered to have received a taxable benefit. ... Accordingly, should the Region offer child care to the public at large at XXXXXXXXXX for a fee greater than that charged to its own employees, the difference is considered to be a taxable employment benefit. ...

Otherwise, the premium paid could be considered a shareholder benefit when paid and the company would not be entitled to a deduction. ... As well, for the employer the premiums would be considered an expense incurred for the purpose of gaining or procuring business income. ...

Where individuals who reside in a prescribed northern zone on a permanent basis, that is, "in the settled routine" of their lives, that location is where they are considered to "regularly or customarily" reside. In such a case, continuity is not considered to be broken by short term absences such as vacations and temporary work assignments. ... For these individuals, it is our view that temporary absences of returning regularly to their permanent residence is considered to be a break in the continuity of residency in the prescribed zone. ...