Search - considered

SUBJECT: CALCULATING CURRENCY SECTION: 95(2)(f)(ii), REG 5907(6)] Canadian Tax Foundation Corporate Management Tax Conference Subparagraph 95(2)(f)(ii), Regulation 5907(6) Question For purposes of subparagraph 95(2)(f)(ii) and Regulation 5907(6), under what circumstances will a particular currency be considered "reasonable in the circumstances"? ... Where a particular currency has become the generally accepted currency for conducting business in a country, such currency may be considered "reasonable in the circumstances", notwithstanding that some other currency is the official currency of that country. As well, the currency that is used for income tax purposes in the foreign jurisdiction would normally be considered "reasonable in the circumstances". ...

The relevant characteristics to be considered would include the obligation's provisions with respect to interest, repayment and consequences of default. The Certificate and the Deposits differ from the other obligations identified as they are both considered deposit instruments and may or may not be secured under the Bank Act. ... However, depending on the particular circumstances and regardless of their classification as deposit instruments, the Certificates and the Deposits might be considered sufficiently similar to unsecured notes to qualify as similar obligations. ...

As indicated to you previously by telephone, whether a resident of the United Kingdom has a permanent establishment in Canada for purposes of the Canada-United Kingdom Income Tax Convention (the "Convention") is essentially a question of fact that generally can only be determined retrospectively after all of the relevant facts have been determined and considered. ... We can, however, advise that it is our opinion that the fact that an enterprise of the United Kingdom carries on business in Canada through several agents (rather than merely one agent) of an independent status, where such persons are acting in the ordinary course of their business, does not in and of itself render paragraph 5 of Article 5 of the Convention inapplicable and does not in and of itself result in such enterprise of the United Kingdom being considered to have a permanent establishment in Canada. The opinions expressed herein are not advance income tax rulings and, in accordance with paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, are not considered binding on the Department. ...

7 February 1991 Income Tax Severed Letter- Self-employed Real Estate Agents Unedited CRA Tags 125(1), 125(1)(b), (d) Dear Sirs: Re: Self-Employed Real Estate Agents This is in reply to your letter of October 15, 1990 and subsequent facsimile transmission of January 15, 1991 wherein you ask whether a self-employed real estate agent may incorporate, utilize the small business deduction and not be considered an incorporated employee as envisaged in paragraph 125(7)(d) of the Act. ... Where the corporation is providing the services of an independent contractor, it is not considered to be providing the services of an “incorporated employee”. As a result, income earned by the corporation is not considered income earned by a personal service business as envisaged in paragraph 125(7)(d) of the Act. ...

In addition, the "primary use" of the asset is considered relevant in distinguishing between an inventory item and capital property. ... The Department has recognized that items, which are consumed in the income earning process or are technically obsolete due to changing customer requirements, would be considered inventory subject to valuation within the meaning of subsection 10(1) of the Act despite arguments that such items in some cases could be considered capital. ...

In our view, unless such shares constitute either capital property or inventory to the holder, they will not be considered to be “eligible property” within the meaning of subsection 85(1.1) of the Act. ... As the circumstances of sale are usually considered relevant in determining whether the property was held on income account, as an adventure in the nature of trade or on account of capital, it might not be possible to determine, prior to the ultimate sale to a third party, whether any gain realized on the ultimate sale would be considered to be an income gain. ...

We understand that your office considered the same equipment and issued a revised certificate and correspondence (copies attached) dated July 18, 1991 in respect of the assigned file number XXX. ... Other significant requirements for inclusion in the class are questions of fact and circumstance which can only be considered by Revenue Canada, Taxation officers at a time when all relevant facts concerning the ownership of the equipment, the location of the equipment, and the ownership and operation of the polluting activity are known. We feel very strongly that no assurance of Class 24 inclusion can be given to a taxpayer until all information that relates to each requirement for the class is known and has been considered. ...

Specifically, you are concerned as to whether large seasonal cash balances would be considered to be used in the active business of a corporation. ... Cash balances which accumulate and are then depleted in accordance with the annual seasonal fluctuations of an ongoing business will generally be considered to be used in the business, but a permanent balance in excess of the company's reasonable working capital needs will generally not be considered to be so used. ...

(a) Will the grant of the Option be a disposition of property by the Issuer and will the grant of the Option be considered as an issue of debt to the Option holders? Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information (b) In the event that the Issuer is considered to have received proceeds on the grant of the Option, will the option price received be considered to be: (i)income to the issuer; and (ii) an inducement received by the Issuer in the course of earning income? ...

It is the Department's position that, where in an arm's length situation, a long term employee is laid off or has retired without any assurance of being rehired at the time, and receives an amount from his employer in recognition of long service or in respect of a loss of an office or employment, such an amount would be considered a "retiring allowance" regardless of the fact that the employee might be rehired, by the former employer, at a later date when circumstances have changed. ... Accordingly, an amount received by the employee on account of his retirement in such circumstances would not be considered a retiring allowance. It is to be noted that the question of whether an employee has really suffered a loss of employment can only be determined after all the facts and the terms and conditions of the contract have been considered. ...