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From the limited information provided it would appear that the taxpayer engages in the following activities: 24(1) Each of these activities and the assets used in the activities must be considered separately in order to determine the correct income tax treatment of the taxpayer's business. ... Paragraph 4601(c) of the Regulations should be considered in order to determine whether the equipment will qualify as "qualified transportation equipment" as defined in subsection 127(9) of the Act. c) As stated in paragraph 2 a) above, transportation of raw materials to the plant does NOT qualify as M&P. ... The property would be included in Class 10(k) as it is would not be considered to have been acquired for the purpose of gaining or producing income from a mine. b) In our opinion, the processing plant is considered to be a "facility" as defined in the RDIA, and structures, machinery and equipment used in the processing 24(1) will qualify as "certified property" provided that they are primarily for use in a prescribed area. c) In our opinion, as stated in 1 c) above 24(1) 4. ...

The fact that mortgage reserves and mortgage interest may be considered incident to or pertaining to the active business does not necessarily determine that the mortgages receivable are used in the active business. ... Such funds would be considered to be permanently set aside for investment or uses other than in an active business. ... The only receivables that may be considered to be assets used in an active business of a corporation are trade accounts receivable that arise from sales by the corporation pursuant to its active business. ...

20 January 2014 Internal T.I. 2013-0506711I7- Meaning of "medical expenses" in Reg. 233(2) CRA Tags ITR 233(1) ITR 233(2) 56(1)(u) Principal Issues: Whether amounts paid in respect of "medication dispensers" and "personal alert assistance" devices would be considered as amounts paid in respect of medical expenses incurred by or on behalf of the payee within the meaning of subsection 233(2) of the Regulations? Position: No Reasons: CRA policy January 20, 2014 Robin Maley Income Tax Rulings Manager Directorate Provincial Legislative Amendments Section Business and Employment International, Provincial & Division Strategic Policy Division Ananthy Mahendran 905-721-5204 2013-050671 Meaning of "Medical Expenses" in Subsection 233(2) of the Income Tax Regulations This is in response to your e-mail dated September 30, 2013, wherein you requested our views as to whether amounts paid in respect of "medication dispensers" and "personal alert assistance" devices would be considered as amounts paid in respect of "medical expenses" incurred by or on behalf of the payee within the meaning of subsection 233(2) of the Income Tax Regulations (the "Regulations"). We have reviewed the request and we are of the view that these amounts would not be considered as amounts paid in respect of "medical expenses" incurred by or on behalf of the payee within the meaning of subsection 233(2) of the Regulations. ...

18 July 2008 Roundtable, 2007-0261911C6- S Corporation and Article IV(6) Canada-US Treaty Principal Issues: Can an S Corporation be considered fiscally transparent under Article IV(6) of the Fifth Protocol to the Canada-US Income Tax Convention? Position: Yes Reasons: See below 2007-026191 July 18, 2008 Re: IFA 2008 Annual Conference Question: It is argued that an S Corporation could be considered fiscally transparent. ... CRA Response: Pursuant to paragraph 6 of Article IV of the Treaty, for the purposes of the Treaty, any Canadian source income received by the S Corporation will be considered to be derived by the shareholders of the S Corporation (and not by the S Corporation). ...

Policy Unedited CRA Tags 129(4) 56(1)(j) Principal Issues: Whether an inclusion under paragraph 56(1)(j) may be properly considered to be income from a source that is a property for the purposes of the definition of aggregate investment income in subsection 129(4)? ... Agency's Response At issue is whether an amount that is included in a corporation's income under paragraph 56(1)(j) in respect of the disposition of an interest in a life insurance policy is considered income from a source that is property for the purposes of paragraph (b) of the definition of "aggregate investment income" in subsection 129(4). It is our view that where an amount in respect of a disposition of a corporate owned life insurance policy is included in the corporation's income pursuant to paragraph 56(1)(j) such amount may reasonably be considered as being income from a source that is a property for purposes of paragraph (b) of the definition of "aggregate investment income" in subsection 129(4). ...

XXXXXXXXXX Denise Dalphy, LL.B 2005-015282 February 13, 2006 Dear XXXXXXXXXX, Re: Meaning of "Commissions" and "Bonuses" We are writing in response to your letter of August 25, 2005 to the Trust Unit in the Saint John Tax Services Office ("TSO") wherein you requested our opinion on whether amounts paid by your company to its employees are considered commissions or bonuses. ... In our view, an amount paid to an employee will generally be considered a commission if it is computed with reference to the volume or dollar amount of sales the employee makes on behalf of the employer. An amount paid to an employee will be considered a bonus if it is an additional payment to that which would normally be received by the employee. ...

Principal Issues: Amount of a donation that is considered to be a "gift" when an annuity is purchased by the charitable institution for the donor. ... Dunn Attention: XXXXXXXXXX May 20, 1997 Dear Sirs, Re: Calculation of Tax Receipt for Annuity We are writing in response to your facsimile transmission of March 25, 1997 wherein you had requested information regarding the calculation of the amount considered to be a gift to a charity in circumstances in which an annuity is purchased by the charity for the donor. ... As noted in paragraph 6 of the Interpretation Bulletin, the amount of the gift in such a situation is considered to be the excess of the amount of the contribution by the donor over the total of the payments expected to be received by the annuitant under the annuity. ...

Could these related shareholders be amalgamated or one be wound up into the other without the amalgamation or winding-up being considered to be done in the course of the reorganization in which the butterfly distribution is made? Department's Response Applying the approach described in our response to question 16, a winding-up or amalgamation of a transferee corporation would not ordinarily be considered to occur as part of the butterfly reorganization, even where the corporation with which the transferee corporation is being merged is also a shareholder of the distributing corporation. ... However, the amalgamation or winding-up might nevertheless occur as part of the series of transactions, in which case the rules in subsection 55(3.1) would have to be considered. ...

You have asked us for a list of prizes which are considered to qualify as "prescribed prizes" as well as a list of prizes which are not considered to so qualify. While we have considered whether a number of prizes qualify as prescribed prizes, the Department does not have a comprehensive list in respect of prescribed prizes. ...

Subsection 18(4) would be applied at the partnership level, ie. the partnership would be considered to have received the loan, not the partners. ... Where, however, it may reasonably be considered that the formation of the partnership was primarily to avoid the application of subsection 18(4) to interest paid on loans made to the partnership, the application of subsection 245(2) will be considered. ...