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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. ...

In order for the amount of a retiring allowance to be considered reasonable in a non-arm's length situation, it should not exceed the amount that would be considered reasonable in an arm's length situation. In one private opinion letter, the Department considered that it was not likely that a reasonable arm's length allowance would exceed 2 1/2 times the average salary for the last five years, minus the total of any amounts the employee would be entitled to receive on retirement in respect of deferred profit sharing plans, registered pension and registered retirement savings plans. ... Department's Position Generally speaking, where the amount of a payment that otherwise qualifies as a retiring allowance is considered reasonable based on the above criteria, the characterization of the payment as a retiring allowance or the deductibility of the amount will not be affected by the fact, in and of itself, that the amount is to be paid in instalments over a 2 or 3 year period. ...

Ford 921866 24(1) We are replying to your letter of June 10, 1992 wherein you ask for our comments on whether the above noted trust can be considered a non-profit organization within the meaning of paragraph 149(1)(l) of the Income Tax Act (the Act). ... However, you question whether the trust can be considered a non-profit organization within the meaning of paragraph 149(1)(l) of the Act since the trust document provides for a return of contributions to the employer, the settlor of the trust, upon windup of the trust. ... You ask whether the amounts are properly taxable as employment income or whether the amounts can be considered as a living allowance received from an entity with which the employee does not have an employee-employer relationship. ...

For the period of time that the taxpayer is considered to be a "trader or dealer in securities" he cannot make the subsection 39(4) election and an election previously made is during that interval negatived. ... A taxpayer who disposes of shares he held prior to acquiring the inside information is not considered to be a trader or dealer in securities. ... A taxpayer who is, or who is considered to be, a trader or dealer in securities is unable to make the subsection 39(4) election for the duration of the period throughout which he may be thus characterized. ...

In considering whether royalties received by a corporation in any business can be considered to be income from an active business for the purpose of subsection 125(1) of the Act as opposed to income from property and therefore constituted income from a specified investment business within the meaning of a paragraph 125(7)(e) of the Act, we believe that as a general rule royalty income is income from a source that is property. ... As noted in paragraph 11 of Interpretation Bulletin IT-73R4 the word “principal” is considered synonymous with the words “chief” and “main”. ... However, where it can be established that the royalty income is incidental to an active business carried on by the recipient corporation or the corporation is in the business of developing the property from which the royalties are received, such income would not normally be considered as income from property. ...

In your opinion it would seem more appropriate that the taxpayer be considered to have acquired the property at the time that all the rights, risks and rewards of ownership had vested in the taxpayer, being in this case, in 1990. ... If the property was considered to have been acquired for tax purposes in XXXXXXXXXX, the taxpayer would be subject to tax on the increase in value from December 31, 1971 to the date that the taxpayer's residency in Canada ceased. ... Any gains or income attributable to the period prior to such date would not be taxable in Canada since such amounts would be considered to meet the criteria of being considered a windfall. ...

XXX are concerned that we will interpret paragraphs 1 and 2 of Article 4 (“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 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 purpose 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? ...

Is a foreign corporation whose shares are held by Canadian corporate partnership considered a foreign affiliate of the corporate partners? ... A can not be considered to be a foreign affiliate of the corporate partners for purpose of computing their income. ... A was considered to be a foreign affiliate of the corporate partners none of them would be considered to be dealing at non-arm's length with Co. ...

Article IV(1) would also cause the Canadian incorporated company to be considered a resident of the United States for the purposes of the Convention because the election under paragraph 1504(d) of the Code would come under the "any other criterion of a similar nature" requirement. ... It does not preclude such a corporation from being considered a Canadian resident under Article IV(3) of the Convention. In summary we are of the view that a Canadian incorporated company, that is a deemed resident of Canada pursuant to subsection 250(4) of the Act (i.e., it was incorporated in Canada), will be considered to be resident only in Canada for purposes of the Convention. ...

XXX are concerned that we will interpret paragraphs 1 and 2 of Article 4 (“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 Articles 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? ...