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9 November 1989 Income Tax Severed Letter AC58821- Acknowledgement 5-8821 R.C. 0'Bryne (613) 957-8821 19(1) NOV- 9 1989 Dear Sirs: 24(1) This will acknowledge your letter of October 4, 1989 in which you provided a brief summary of some of the facts which you think should be considered when reviewing the 24(1) case. The contents of your letter will be considered as part of our review of this case. ...

16 May 2012 External T.I. 2012-0438241E5- Retired Partner Income Unedited CRA Tags 96(1), (1.1), (1.6); 123.4; 125; 129 Principal Issues: Whether income received by a corporation who ceased to be a member of a partnership in accordance with subsection 96(1.1) of the Income Tax Act (the "Act") can be considered "specified partnership income" or "aggregate investment income" under subsection 125(7) or 129(4) of the Act, respectively. ... XXXXXXXXXX 2012-043824 André Gallant May 16, 2012 Dear XXXXXXXXXX: Re: Retired Partner Income We are writing in reply to your correspondence dated February 27, 2012, wherein you enquire whether income received by a corporation that ceased to be a member of a partnership in accordance with subsection 96(1.1) of the Income Tax Act (the “Act”) can be considered “specified partnership income” or “aggregate investment income” under subsection 125(7) or 129(4) of the Act, respectively. ... In our view, the income received by the retired corporate partner in your hypothetical situation would not be considered to be “specified partnership income” or “aggregate investment income” under subsection 125(7) or 129(4) of the Act, respectively. ...

Reasons: A taxpayer's TFSA trust is considered an affiliated person with the taxpayer. ... Under the Income Tax Act, a taxpayer's TFSA trust is considered a person affiliated with the taxpayer. ... " Accordingly, a capital loss realized from securities sold by a taxpayer and then immediately repurchased by the taxpayer's TFSA trust would be considered a superficial loss, and the amount of the capital loss would be nil. ...

7 January 2011 External T.I. 2009-0330971E5- TFSA Withdrawal Fee Unedited CRA Tags 146.2(1) Principal Issues: Whether a withdrawal fee charged to a TFSA arrangement per withdrawal transaction will be considered a distribution as defined in subsection 146.2(1)? ... Tsang January 7, 2011 Dear XXXXXXXXXX: Re: TFSA Withdrawal Fee This is in response to your letter of February 27, 2009, wherein you requested our comments on whether a Tax-free Savings Account ("TFSA") withdrawal fee would be considered a "distribution" as defined in subsection 146.2(1) of the Income Tax Act (the "Act"). ... Where a fee is charged for withdrawing funds from a TFSA, this fee is considered a cost to the TFSA and should be paid with funds held within the TFSA. ...

If we apply the methodology provided by the FCA, it would appear that an issuer of debentures could be considered to have realized a loss. Does the CRA agree that an issuer could be considered to realize a loss on the conversion and, if so, that the loss is a loss described in subsection 39(2) or an otherwise deductible capital loss? ... Additionally, although not raised in Agnico-Eagle, the potential application of subsection 143.3(3) of the Act to the computation of any gain or loss arising on a conversion of a debenture should be considered in any similar fact situation, and could impact the application of the methodology endorsed by the FCA. ...

Reasons: To be considered ongoing, the Regulations specify a minimum duration of eight weeks. ... " The Income Tax Regulations define what is considered a "prescribed program of physical activity" for the purposes of the credit. ... To be considered ongoing, the Regulations specify a minimum duration of eight weeks, with a minimum of one session per week, substantially all of which includes a significant amount of physical activity. ...

The Queen (2002 SCC 46) that "where the nature of a taxpayer's venture contains elements which suggest that it could be considered a hobby or other personal pursuit, but the venture is undertaken in a sufficiently commercial manner, the venture will be considered a source of income for the purposes of the Act. ... In your situation, if you think that not all relevant factors were considered or that circumstances have changed, you should contact the Client Assistance Division of your local TSO. ...

However, in the opening sentence of the letter we stated as follows: Pursuant to the definition of "excluded property" in subsection 95(1) of the Act, a partnership interest held by a foreign affiliate of a taxpayer will be considered to be excluded property, provided that all or substantially all of the property of the partnership is used or held by the partnership principally for the purpose of gaining or producing income from an active business. As discussed, that sentence should read as follows: Pursuant to the definition of "excluded property" in subsection 95(1) of the Act, a partnership interest held by a foreign affiliate of a taxpayer (in the circumstances described in your letter) will be considered to be excluded property provided that the fair market value of the partnership interest held by the foreign affiliate is not less than 10% of the fair market value of all interests in the partnership and all or substantially all of the property of the partnership is used or held by the partnership principally for the purpose of gaining or producing income from an active business. We would also note, as discussed with you, that where a foreign affiliate of a Canadian resident immigrates to Canada, the implications of paragraph 128.1(1)(d) of the Act must be considered. ...

That subsection provides that, if the arrangement is one in which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust's property and the trust is not a trust described in paragraphs (a) to (e.1) of the definition of trust in subsection 108(1) of the Act, the arrangement is deemed not to be a trust for the purposes of the Act. A trustee can reasonably be considered to act as agent for a beneficiary when the trustee has no significant powers or responsibilities, the trustee can take no action without instructions from that beneficiary and the trustee's only function is to hold legal title to the property. In order for the trustee to be considered as the agent for all the beneficiaries of a trust, it would generally be necessary for the trust to consult and take instructions from each and every beneficiary with respect to all dealings with all of the trust property. ...

Reasons: The wording in the Regulations is clear. 2007-022759 XXXXXXXXXX Bruce Hartt (613) 946-3558 July 16, 2007 Dear XXXXXXXXXX: Re: Request for technical interpretation- Treatment of subscription receipts under paragraph 4900(1)(e.01) of the Income Tax Regulations This is in reply to your letter of March 15, 2007,wherein you asked for our views on whether or not subscription receipts would be considered a qualified investment as defined in paragraph 4900(1)(e.01) of the Income Tax Regulations (the "Regulations"). ... Whether or not a subscription receipt is considered to be a qualified investment would be a question of fact. ... Therefore, in order for a subscription receipt to be considered a qualified investment, it would need to be listed on a prescribed stock exchange and the underlying property to which the subscription receipt entitles the holder to receive would need to be a qualified investment. ...