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., will the amount of the deduction be considered as a prescribed benefit for the purposes of regulation 231(6) of the Income Tax Regulations? b) If a limited partner of a limited partnership is entitled to exchange his partnership unit for partnership property that has a fair market value equal to the fair market value of the partnership unit at the time of disposition, will the fair market value of the Partnership property so distributed be considered a prescribed benefit for the purposes of regulation 231(6) of the Income Tax Regulations? DEPARTMENT'S POSITION a) Where shares issued by a corporation that are eligible as qualifying investments in RRSP, RRIF and DPSP are contributed to and held in such registered deferred income plans by a taxpayer, those shares will be considered "prescribed property" for the purposes of subsection 231(7) of the Regulations and hence will be excluded from the definition of "tax shelter" in subsection 237.1(1) of the Act. b) The determination of whether a limited partner's ability to exchange his partnership unit for partnership property that has a fair market value equal to the fair market value of the partnership unit at the time of disposition would have the effect of reducing the impact of any loss he may sustain is a determination that can only be made based on the facts of a particular situation. ...

Interest in money borrowed to purchase an income averaging annuity contract ("IAAC") prior to November 13, 1981, is considered to be borrowed for the purpose of earning income from property. ... This may, in your view, create an unfair situation whereby the interest is an investment expense subject to CNIL rules, but the annuity income, not being considered property income, is not considered investment income for CNIL purposes. ...

Generally, a plan under which contributions are made by an employer to a custodian in connection with benefits to be received on retirement or substantial change in services would be considered a "retirement compensation arrangement" ("RCA") under subsection 248(1) of the Income Tax Act (the "Act"). ... Furthermore, it is our view that a payment received upon retirement by an employee that represents unused sick leave credits would generally be considered a retiring allowance under subsection 248(1) of the Act unless the payment is made under a funded plan. In the latter situation the plan would be considered an RCA. Finally, it should be noted that the determination of whether a foreign pension plan is an RCA, SDA or an unregistered pension plan can only be made after a detailed examination of all the relevant terms and conditions. ...

Therefore, the corporation would be considered a public corporation as of the date of issue of the shares which, if held by an RRSP, will be considered to be qualified investments. These shares would also be considered to be qualified investments for any other deferred income plans which define shares of a public corporation as a "qualified investment" for purposes of the Act. ...

Is equipment considered to be "available for use" for purposes of draft subsection 13(27) of the Income Tax Act (the "Act") in the following two situations? ... In the first situation, the equipment could be considered to become "available for use" in the particular taxation year by virtue of draft paragraph 13(27)(a) of the Act since the equipment was in fact used for the first time in that year in accordance with its intended purpose. In the second situation, the equipment could be considered to become "available for use" in the particular taxation year by virtue of draft paragraph 13(27)(d) of the Act since the time that it was capable of being used for its intended purpose preceded the time when it was first used. ...

Our position is unchanged from that stated in the February 21, 1983 letter in which we opined that a corporation deriving its income primarily from the provision of services would not be considered a "principal business corporation" within the meaning of paragraph 66(15)(h) of the Act, notwithstanding that the services provided are in respect of activities described therein. ... The determination would be one of fact which must be considered by reference to the various activities in which the corporation is engaged. All activities of the corporation throughout the relevant taxation year must be considered. ...

You also asked whether specific rehabilitation expenses such as specially equipped cars, computers, tuition fees, and books paid by the insurance carrier would be considered taxable benefits to the claimants. You were of the opinion that these expenses should be considered taxable or non-taxable in accordance with the taxability of the wage loss plans involved. ... It is a question of fact whether a wage loss replacement plan providing such benefits would be considered one of the types of plans mentioned in subparagraph 6(l)(f)(iii) of the Income Tax Act. ...

Further, for a 149(1)(l) entity, expenditures incurred in renovating a building used in its day-to-day activities would not be considered to relate to the entity's income from property. ... In computing the taxable income of the deemed trust, interest income is typically considered to be income from property and included in the calculation of that taxable income. ... Then, based on hypothetical facts, CRA provided comments on what might be considered to be currently deductible by the taxpayer in the calculation of its business income and what could reasonably be considered to relate to the period of construction. ...

For the purpose of subsection 126(2), would the Canadian corporation be considered to carry on business in the US? ... For the purpose of the foreign tax credit stated in subsection 126(2), would the Canadian corporation be considered to carry on business in the US? ... If a vendor of machinery, for example, provides to customers an engineer to supervise the installation of the machinery, this service would generally be considered to be incidental to the activity of selling the machinery; however, this type of service could in some cases be considered to be a significant activity on its own, depending on the machinery being sold, the nature of the installation service, and the terms of the contract with the customer. ...