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The payments made by the employer are considered incurred for the purpose of gaining or producing business income. ... You inquired as to whether amounts paid to each driver by the employer of $1.25 for gas and 35 cents for laundry per house visited are considered taxable benefits pursuant to the Income Tax Act (the Act). ... Finally, the payments made by the employer are considered incurred for the purpose of gaining or producing business income and are therefore deductible. ...

14 March 2006 External T.I. 2006-0166891E5- Qualifying Retroactive Lump-Sum Payment Unedited CRA Tags 110.2 Principal Issues: Will a lump-sum payment of pension benefits relating to prior years be considered a qualifying amount for purposes of the qualifying retroactive lump-sum payment rules in section 110.2 of the Act? ... Whether a particular amount would be considered a payment in respect of a superannuation or pension benefit and included in income pursuant to 56(1)(a) of the Act, is ultimately a question of fact. ... As such, provided the other requirements of the provision are satisfied, the lump-sum amount made by the Former Employer to retirees' in relation to pension benefits of prior years, may be considered a qualifying amount pursuant to the definition in section 110.2 of the Act. ...

In accordance with Interpretation Bulletin IT-392, the Tennessee LLC is considered to have a capital stock consisting of 100 issued shares and each owner of a beneficial interest in the LLC is then considered to own a number of shares proportionate to his beneficial interest in the LLC. Each amount distributed on account of profits by the Tennessee LLC to its owners will be considered dividends for the purpose of the Act and the Regulations made thereunder. If the Tennessee LLC is treated as a partnership for the purposes of the Internal Revenue Code (the "Code") such that the shareholders ("partners") rather than the LLC are liable to tax under the Code on the income of the LLC, such LLC will not be considered to be a resident of the U.S. pursuant to paragraph 1 of Article 4 of the Canada-U.S. ...

Reasons: Based on IT-441, paragraph 4, such an agreement would be considered to be a disposition (prior to the production) of the film. However, the production may be considered to be done for the distributor and the labour expenditure may be considered to be incurred by the distributor, instead of the producer. ... During our telephone conversation of October 7, 1997 (Fontaine/Paling), you confirmed that: (a) as stated in paragraph 4 of Interpretation Bulletin IT- 441, the producer appeared to have disposed of the film by granting to the distributor the rights to distribute the film in markets representing all of the exploitable value of the film which may reasonably be its fair market value; (b) you were able to convince the taxpayers that on the basis of the pre-production disposition of the film by the producer to the distributor, the labour expenditure for the film to the producer would be nil and, therefore, the producer would not be entitled to the film tax credit; (c) notwithstanding the producer's nil labour expenditure, you agreed that the production did not appear to be an "excluded production" under subsection 1106(1) of the Income Tax Regulations for the purpose of issuing a Form Part A Certificate; (d) you opined that an argument could be made that the film was produced for the distributor which could be considered to incur the labour expenditure for the purposes of the film tax credit; however, there was some doubt as to whether the distributor would meet the requirements of the terms "throughout" and "primarily" in the definition of "qualified corporation" under section 125.4(1) of the Income Tax Act; and (e) finally, the financing arrangement under the letter agreement was withdrawn and replaced with loan financing from the distributor. ...

Generally, a farming activity will be considered a source of income from a business if it is carried on with a reasonable expectation of profit. ... Interpretation Bulletin IT-322R, Farm Losses, a copy of which is enclosed, sets out some of the criteria that are considered in determining whether a farming operation is a business, and comments on the deductibility of farm losses. ... Accordingly, even if raising race horses were considered to be a sporting activity, the income it generates might be taxed as business income, to the extent that the activity has the characteristics of a business and is not solely a hobby. ...

Further if the requirements in paragraph 5 of IT-365R2 are met then such settlement will be considered a structured settlement. ... You have asked us to confirm that periodic payments under such a settlement agreed to in accordance with this new Ontario legislation will be considered a structured settlement as described in paragraph 5 of Interpretation Bulletin IT-365R2. ... Such a settlement will be considered a structured settlement as contemplated in Interpretation Bulletin IT-365R2 if the requirements in paragraph 5 of that bulletin are otherwise met. ...

Principal Issues: Large Corporation Tax- Deferred revenues/charges Position TAKEN: Deferred revenues are considered as advances for paragraph 181.2(3)(c). Deferred charges where paid before due and to corporations who are not financial institutions are considered as advances for purposes of paragraph 181.2(4)(b) as an investment allowance. ... (B) If the deferred revenue recorded by one corporation is accounted for as a deferred charge by the other corporation, would the deferred charge be considered an advance for purposes of the investment allowance under paragraph 181.2(4)(b)? ...

Principal Issues: whether the reimbursement of the cost charged by a physician to fill out forms to renew an employee's Class A driver's license is a taxable benefit where the holding of such a license is a job requirement Position TAKEN: no Reasons FOR POSITION TAKEN: look to who is the primary beneficiary of the payment of expense- while the payment of what is normally considered a personal expense is a taxable benefit, it will not be where the facts show that the expense was a requirement of the job- see EC0527- the present letter only deals with Class A licenses which require a physician's certification of the employee's medical health and not a regular Class G license (i.e. maintenance of a Class A license as opposed to Class G is more likely to be linked to an employer imposed requirement) A. ... Accordingly, where the facts show that the employee is required to pay a physician's fee as a condition of employment either directly or indirectly (i.e. as a requirement to fulfil the job-related requirement to hold a Class A driver's license), the reimbursement of that fee will not be considered a taxable benefit to the employee. Please note that where the physician's fee is not considered to be a condition of employment, the reimbursement will not be considered a taxable benefit if it is reimbursed under a private health services plan as described in attached Interpretation Bulletin IT-339R "Private Health Services Plan". ...

Subsection 13(27) of the Act establishes the time at which property, other than a building, is considered to have become available for use by a taxpayer. Will RC outline its position for determining when new property is considered to become "available for use" in the following situation? ... With regard to equipment in the testing stage, it is our opinion that the testing activity would not qualify equipment to be considered "available for use". ...

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. ...