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Who will be considered to be carrying on the real estate sales business, and will subsection 56(4) apply (i.e., will the commission income be considered as being earned by the corporations or the salespeople)? Position TAKEN: We cannot provide assurance that the individual or the corporation will always be considered to be carrying on the real estate sales business, or whether subsection 56(4) will apply. ... Thus, we cannot provide you with assurance that, in the above-described scenario, the individual or the corporation will always be considered to be carrying on the real estate sales business, or whether subsection 56(4) of the Act will apply. ...

Subsection 40(3.1) of the Act provides that a member of a partnership is considered to have realized a gain equal to the "negative adjusted cost base" of the member's interest at the end of the fiscal period if the member is a limited partner or was since becoming a partner, a "specified member of the partnership". ... Subsection 40(3.15) of the Act describes those partnership interests that are considered to be excluded interests for the purpose of new subsection 40(3.1) of the Act. ... Subsection 40(3.16) of the Act describes various circumstances where contributions to, or borrowing by, a partnership will not be considered to be substantial for the purpose of the grandfathering rule in subsection 40(3.15) of the Act. ...

The latter phrases were considered in the landmark decision in the R. v. ... If paragraph 6(1)(f) of the Act is not considered to apply in a particular case with circumstances similar to those in Peel, in our view, the payment would not be considered to be made pursuant to the terms of the disability plan to which the employer made contributions. ... It is our recommendation, therefore, that to the extent that the settlement amount relates to amounts that are computed as having been due and payable up to the time of settlement, the amounts should be considered taxable under paragraph 6(1)(f) of the Act. ...

A should not be considered to have transferred ownership interests in the home to the two sons when they were included in the legal title, as that action permitted them to help Mrs. ... A should be considered to be the sole current owner of the home and will be considered to have disposed of it when she goes to the nursing home and the proposed arrangements are finalized between her two sons. ... A did not retain beneficial ownership of the property after legal title changed, she would be considered to have had a "disposition" (as defined by section 54 of the Act) for income tax purposes, when legal title changed (to the extent of 2/3 of its fair market value at that time). ...

Position: Yes Reasons: If agreement entered into before retirement then person not considered retired and severance pay will not qualify as a retiring allowance. 973046 XXXXXXXXXX M.P. ... Generally, where an individual retires and is immediately thereafter re-employed by his former employer or an affiliated employer, the Department is of the view that the individual will not be considered to have retired. ... However, as noted in paragraph 4(b) of Interpretation Bulletin IT-337R2, termination of employment because of mandatory retirement followed shortly by employment with an affiliate of the former employer will be considered retirement or loss of employment for purposes of the Act. ...

Therefore, any excess of the Part I.2 tax over OAS benefits is considered to be a repayment of NFS to the extent of NFS included in income. ... If the Part I.2 tax exceeds OAS benefits, the excess will be considered to be a repayment of NFS to the extent of NFS included in income. ... Accordingly, the paragraph 110(1)(f) deduction will be reduced to the extent of the Part I.2 tax that is considered to be a repayment of NFS. ...

Position: Question of fact but farmland may be considered as replacement for other farmland and crown grazing leases. Reasons: Property that is used for the prupose of gaining or producing income in the same or similar business will be considered to be acquired for the same or similar use. ... In our opinion, farmland may be considered to be acquired for the "same or similar use" as a crown grazing lease. ...

Certain properties do not meet the 50% requirement, but 57% of total acreage is used in a farming business, does this mean all of the acreage is considered used principally in active business. ... It is your view, that since 57% of the total acreage is cultivated, all of the acreage would be considered used principally in an active business. ... Some of the criteria which should be considered in making this determination are set out in Interpretation Bulletin IT-322R. ...

Each owner of a beneficial interest in the foreign business entity is then considered to own a number of shares proportionate to the owner's beneficial interest in the foreign business entity. This interpretation would apply in respect of a member of an LLC that was considered a corporation for Canadian tax purposes. It is our opinion that the U.S. tax paid on the shareholder's share of income of the LLC would be considered a tax in respect of income from the share of the LLC for purposes of subsections 20(11), 20(12) and 126(1) of the Income Tax Act, notwithstanding that the tax is computed with reference to the LLC's income. ...

Reasons: A business the principal purpose of which is to derive income from property (including income from rentals of real property), would be considered a “specified investment business” as defined in subsection 125(7) unless, inter alia, the corporation employs in the business throughout the year more than five full-time employees. ... Gibbons 5-982509 Attention: XXXXXXXXXX November 5, 1998 Dear XXXXXXXXXX: We are replying to your facsimile of September 28, 1998, in which you inquire whether a particular business would be considered active or inactive. ... Thus, the income of a corporation involved in renting storage space would likely be considered income from a specified business income and excluded from the calculation of “income of the corporation from an active business,” unless the corporation employed in the business throughout the year more than five full-time employees. ...