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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. ...

" That paragraph goes on to state that "where the taxpayer goes beyond mere subdivision of the land into lots and installs improvements such as watermains, sewers or roads, or carries on an extensive advertising campaign to sell the lots, the taxpayer will be considered to have converted the land from capital property into a trading property." In relation to the above comments, your concern is whether a farmer, with respect to farmland, is considered to have converted capital property to inventory at the time of making an application for subdivision or at the time the farmer goes beyond the subdivision of the land into lots and installs improvements. ... However, where a farmer, makes application for subdivision, then subdivides the farmland and proceeds to develop it and sell lots, it is our general view that the farmland would be considered to have been converted into inventory at the time of making application to the relevant authority for approval of a plan to subdivide the land into lots for sale. ...

Reasons: The functions of the Pay Equity Office cannot be considered legal proceedings. ... The employer wishes to know whether the lump-sum payment to be made pursuant to the agreement will be considered a "qualifying amount. ... " XXXXXXXXXX, we have come to the conclusion that the functions of the Pay Equity Office cannot be considered legal proceedings. ...

Principal Issues: (a) Whether the facility (including a new natural-gas-powered turbine generator and a new heat recovery steam generator) would be considered as one system that is used by the taxpayer to generate electrical energy, or both electrical and heat energy, using only fuel that is fossil fuel as contemplated at clause (c)(i)(A) of Class 43.1, and whether an existing steam turbine would be considered as the steam host, notwithstanding that the facility and steam turbine would be used in a combined cycle for generating electricity. ... Position: (a) Yes (b) Yes Reasons: (a) Based upon the opinion of Natural Resources Canada dated May 29, 2000, the facility would be considered as one system and the steam turbine would be considered as the steam host to take delivery of steam generated from the facility, notwithstanding that the facility and steam turbine would be used in a combined cycle for generating electricity. ... As stated in paragraph 2 above, the steam produced by the Facility will be used to power the Unit #XXXXXXXXXX Steam Turbine, which will be considered the steam host. ...

Reasons: (1) The expenses must satisfy the criteria in the Act for deductibility of legal fees. (2) These costs would be considered to be personal living expenses. 2000-003720 XXXXXXXXXX A. ... As outlined in paragraphs 1 and 2 of Interpretation Bulletin IT-99R5, except for certain specific provisions in the Income Tax Act (the "Act") which permit the deduction of legal fees, legal fees are generally an allowable deduction only in those situations where they are incurred in connection with normal activities, transactions or contracts incidental or necessary to gaining or producing income from a business or property and where the outlays are not considered to be a capital expenditure. ... Fees paid by an individual relating to the certification of court documents and other fees paid pursuant to a provincial statute to oversee the curatorship of an individual would generally be considered to be personal or living expenses and are, therefore, not deductible in computing income for tax purposes pursuant to paragraph 18(1)(h) of the Act. ...

Reasons: The eligible amount received by the annuitant is restricted to a maximum and the fees paid by the RRSP in respect of its investments would not be considered received by the annuitant. ... Consequently, these costs would not be considered in determining the amount received by an individual under either the HBP or the LLP as they are expenses of the RRSP. ... In this situation, the annuitant would be considered to have received $10,000 and not $10,526. ...

Principal Issues: Does a grandchild have to actually be supported by the deceased, or will he be considered financially dependent if his income is below the threshold? ... The opening words of the form indicate that the beneficiary is considered "financially dependent if, in the year before the year in which the annuitant died, the beneficiary's net income... is equal to or less than the basic amount... ... Where the grandchild is living with another individual who is providing support for him/her at the time of the annuitant's death, the grandchild would not be considered to be financially dependent upon the deceased for support at that time. ...

These dividend and rental payments are subject to Canadian Part XIII tax.  19(1)  are concerned that we will interpret paragraphs 1 and 2 of Article $ ("Articles 4(1) and 4(2)") (a photocopy of which is attached) of the Australian Convention in such a manner that the Society will not be considered to be a resident of Australia for purposes of this Convention and will thus not be entitled to the benefits contained therein (e.g. reduced withholding rates on amounts subject to Canadian Part XIII tax). ... Accordingly, the Society may be considered to be a resident of Australia for the purposes of Article 4(1) of the Australian Convention Because it would be considered to be a resident of Australia for purposes of its tax. 2)     As the Canadian source income of the Society would be exempt from Australian tax because the Society is a non-profit organization and not solely because such income is subject to Canadian tax, Article 4(2) of the Australian Convention applies to cause the Society to not be considered a resident of Australia for all purposes of this Convention. ... Convention, was it intended that exempt organizations be considered resident in a contracting state for purposes of any treaty in order that they receive the benefits of the treaty? ...

If the instrument is accepted as absolute payment, the debtor will be considered to have paid the debt and the creditor will be considered to have received the value of the instrument (see IT-433).....When an instrument is accepted as conditional payment, the debt is not discharged, but the creditor's remedy on the contract is suspended until the maturity of the instrument. ... Although it is usually considered that the creditor has accepted an instrument as conditional payment or as evidence of indebtedness, in the appropriate circumstances the instrument may be accepted as absolute payment and the debtor will be considered to have paid the debt.  In IT-77R, for instance, it states that a security will be considered to be received in absolute settlement of a debt if the creditor accepts the security at the risk of its being dishonoured, with his only legal recourse being an action against the issuer for failure to honour the obligation. ...

It should be noted that for purposes of the Act, life insurance corporations are considered to be public corporations. ... A corporation's business will be considered to have been carried on in Canada if at least 50% of its employees are engaged in the business in Canada or at least 50% of its salaries or wages are paid for services provided in Canada in respect of the business. If the corporation is part of a group of related corporations, the combined services of their employees and the combined salaries and wages paid must be considered in making this determination. ...