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Can an individual be considered to be employed for the purposes of paragraph 60(j.1) where he or she is a shareholder of the employer and all remuneration is received in the form of dividends? ... Usually the query is whether the employee can be considered to be retired notwithstanding his or her continuing to provide services in respect of a rental property. ... The management of a rental operation could be considered to be an "active" activity or a "passive" activity depending upon the nature of the services performed. ...

Principal Issues: Is a trust that is created as a consequence of death considered a testamentary trust if it receives property from an alter ego trust? ... You acknowledge that the transfer of property from an alter ego trust to a newly created trust would be considered to be a contribution to the newly created trust by the alter ego trust. ... If you have a client who is considering establishing an alter ego trust and would like the issue to be considered further, you may submit a request for an advance income tax ruling in the manner set out in Information Circular 70-6R4. ...

Paragraph 127(11.1)(c) of the Act, which applied prior to taxation years beginning after 1995, last read as follows: "the amount of a qualified expenditure... made by a taxpayer shall be deemed to be the amount of the qualified expenditure... less the amount of any government assistance, non-government assistance or contract payment that can reasonably be considered to be in respect of the expenditure..." Subsection 127(18), which applies to taxation years beginning after 1995, reads as follows: "Where... the taxpayer has received government assistance, non-government assistance or a contract payment that can reasonably be considered to be in respect of scientific research and experimental development, the amount... shall be applied to reduce the taxpayer's qualified expenditures... that can reasonably be considered to be in respect of the scientific research and experimental development. ... Whether assistance can reasonably be considered to be in respect of scientific research and experimental development, as set out in subsection 127(18) of the Act, is a question of fact to be determined based on the specifics of the particular situation. ...

Similarly, the conversion of a foreign affiliate’s surplus accounts from a legacy denomination to the euro denomination will not be considered a taxable event. Where, following its redenomination, a legacy-denominated obligation is renominalized, it will not be considered to be disposed of on that basis alone. ... Put another way, the legal effect of these events on such an obligation under the relevant foreign law must be considered in order to determine if the obligation has been disposed of for Canadian tax purposes. ...

However, the arrangement may be considered a "salary deferral arrangement. ... One of the main purposes may be considered tax deferral, since, under the arrangement, employees are allowed to bank vacation leave and thereby defer income tax on the cash value of the banked vacation leave. ... Because an arrangement may have more than one purpose, the fact that one of the purposes is not tax-motivated does not prevent the arrangement from being considered a salary deferral arrangement. ...

Reasons: The investment income is the property in question and if it was not generated on reserve it is considered to be earned in the economic mainstream and is not tax exempt. ... The Queen, 96 DTC 1520, 98 DTC 6238, the Tax Court of Canada, as confirmed by the Federal Court of Appeal considered the taxation of income earned by an Indian living on reserve, from investments purchased from an on reserve branch of a bank. ... As such income will generally be generated off the reserve, it would be considered to be earned in the normal economic mainstream and, accordingly, not considered personal property situated on a reserve. ...

However, in the circumstances discussed, the dividend will not be considered to have been derived from a related business for the year because the business was not carried on in the particular year. ... It is our view that the dividend received by the Individual would be considered to be derived directly or indirectly from a related business. ... Therefore, in the circumstances described, the dividend paid by the Corporation will not meet the requirements to be considered an “excluded amount” under subparagraph (e)(i). ...

In such a situation, the “principal purpose” of the trading business would generally not be to derive income from property and it would not be considered to be a “specified investment business.” As a result, the trading business may be considered an “active business” and any gains or losses from the trading business, as well as any interest or dividend income pertaining to or incident to that business, may be considered “income of the corporation for the year from an active business” under subsection 125(7) of the Act. ... It should be noted that the “principal purpose” of a corporation must be determined annually after all the facts relating to the business (or businesses) carried on by that corporation in that year have been considered and analyzed. ...

In this regard, the underlying issue is whether certain amounts paid or credited retroactively by an eligible entity to an eligible employee who is also a shareholder are considered eligible remuneration paid to the employee for purposes of the CEWS. ... Where a corporation expenses salary to a shareholder/employee by way of journal entry with a credit (increase) to the due to shareholder loan account, is the salary considered eligible remuneration paid to the shareholder/employee? ... Similarly, salary and wages paid but returned to the corporation by the shareholder/employee as a capital contribution or as an amount re-loaned to the corporation would not be considered eligible remuneration for purposes of the CEWS. ...

Position: Question of fact Reasons: Generally, any income earned from the use or occupation of a property or a right to use or occupy property is considered to be rental income. ... Generally, any income earned from the use or occupation of a property or a right to use or occupy property is considered to be rental income. ... Various factors may be considered in determining if a particular property is used primarily to earn rental income, such as the proportion of time the property is used to earn rental income, or the proportion of space, in relation to the total area of the property, that the property is used to earn rental income. ...