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While every request for an advance ruling would have to be considered on an individual basis, we may consider it necessary to refuse to rule until such time as the matter before the courts has been finalized. ... As noted in paragraph 2 of Interpretation Bulletin IT-290 the word "principal" is considered synonymous with the words chief and main, however, for the purpose of paragraph 125(7)(e), it is the principal purpose of the business which must be considered rather than the principal business as discussed in the above-mentioned Interpretation Bulletin. ... It is our opinion that a full-service motel operation would be providing a sufficient level of services such that it would not be considered to constitute a business the "principal purpose of which is to derive income from property. ...

It is your view that the black liquor solids would not be considered wood wastes or municipal wastes. ... The black liquor solids combusted to produce steam could be considered plant wastes but they could not be considered municipal wastes or wood wastes. ... The paper making process which is considered an industrial process presumably produces paper as the principal product and black liquor solids as a by-product or secondary product. ...

For the 1993 and subsequent taxation years, subsection 252(4) of the Act is used to determine whether a couple living together in a common-law relationship are considered as spouses in respect of each other and when that spousal relationship is considered to begin and end. As you set out in your memorandum, in order to be considered a spouse of a taxpayer at a particular time the individual must satisfy two criteria; first, the individual (of the opposite sex) must cohabit with the taxpayer in a conjugal relationship and, second, the individual must either have so cohabited for a continuous period of 12 months ending before that time or be a parent of the child in common with the taxpayer. At any particular time prior to these two criteria being met both the individual and the taxpayer would be considered unmarried (or single) with respect to that relationship. ...

The amount, if any, that is considered to be reasonable must be based on the facts of each particular case. ... It might be noted, for example, that amounts would not be considered reasonable if paid to a shareholder who provides no services to the corporation in which he holds shares. ... If, however, it can be demonstrated that salaries and bonuses paid to persons is to remunerate them for the profits the company has earned that are, in fact, attributable to the special know-how, connections, or entrepreneurial skills of those persons, the test will be considered to have been met. ...

For the exception to the general position to apply, the recipient must be resident in a location that is considered remote. A particular location is not considered remote only by virtue of its distance from another major community. ... For a community to be considered remote it must also be sufficiently lacking in the basic facilities that sustain a permanently established community, including sufficient housing for its residents. ...

Disability insurance benefits paid under the Social Security Act up to the age of 65 are not considered to be income and therefore are not subject to tax in Canada. ... We considered whether an amount could be deducted under paragraph 60(o.1) of the Act and in doing so, speculated whether the disability benefit provided under the United States social security system is considered a "benefit under a pension fund or plan (other than a benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act) in respect of the employment of the taxpayer... ... However, we believe that as disability insurance benefits paid under the Social Security Act up to the age of 65 are not considered to be income and hence not subject to tax, legal fees which may be incurred to secure these benefits are not deductible. ...

At that time we stated: It is a question of fact to be determined in a particular case as to whether or not a loan made by a corporation to an individual could be considered to be received by the individual in his/her capacity as an employee or as a shareholder. ... I.e., bona fide repayments of shareholder indebtedness which are the result of the declaration of salaries, bonuses or dividends will not considered to be part of a series of loans and repayments for the purposes of paragraphs 20(1)(j) and 15(2)(b)- now draft subsection 15(2.6). These repayments not being part of a series, will be considered to apply to the oldest loan or debt outstanding (first-in first-out basis) unless the facts clearly indicate otherwise (paragraph 24 of IT-119R3). ...

Position: Question of fact Reasons: When determining the taxable status under the Act of an allowance received by an employee, the amount is considered reasonable if it is designed to cover the out-of-pocket costs that the employee will incur for the particular purpose for which the allowance is given. ... Your main concern is whether the amounts are considered reasonable for purposes of the provision. ... In general terms, when determining the taxable status under the Act of an allowance received by an employee, an amount is considered reasonable if it is designed to cover the out-of-pocket costs that the employee will incur for the particular purpose for which the allowance is given. ...

Principal Issues: Whether or not certain types of bonus payments may be considered commission for the purposes of subparagraph 8(1)(f)(iii). Position TAKEN: XXXXXXXXXX of the XXXXXXXXXX components which make up the total bonus payment may be considered commission income for the purposes of 8(1)(f)(iii). ... The XXXXXXXXXX component could not, in our opinion, be considered a commission or an amount similarly determined. ...

Principal Issues: Whether a Canadian corporation ("Canco") will be considered to have incurred SR&ED expenditures by providing services described in paragraph (d) of the SR&ED definition in subsection 248(1) of the Act. Position: Those services described in paragraph (d) of the SR&ED definition in subsection 248(1) of the Act performed by Canco would be considered as SR&ED only to the extent that they directly support activities described in paragraphs (a), (b) or (c) of the SR&ED definition in subsection 248(1) of the Act undertaken in Canada by or on behalf of Canco. ... Accordingly, the minimal Primary Research Activities described above, performed by Canco, would be considered as SR&ED. ...