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Paragraph 1 of Article ("Article IV(1)") of the Convention would cause the Canadian for incorporated company to be considered a resident of the united States for the purposes of the Convention because the election under paragraph 1504(d) of the Code would come under the "any other criterion of a similar nature" requirement.  ... It does not preclude such a corporation from being considered a Canadian resident under Article IV(3) of the Convention. In summary we are of the view that a Canadian incorporated company, that is deemed resident of Canada pursuant to subsection 250(4) of the Act (i.e., it was incorporated in Canada), will be considered to be resident only in a Canadian for the purposes of the Convention.  ...

In his article entitled "Section 55: A Review of Current Issues" (1988 Conference Report at 18:3- 18:4), Robert Read states: "Income earned or realized" or "safe income" with respect to a share of a corporation refers to the income earned by any corporation during the holding period of any particular share of a corporation that can reasonably be considered to be allocable to that share in the particular circumstances. "Safe income on hand" at a particular time with respect to a share of a corporation held by a particular shareholder is the portion of the income earned or realized by any corporation (safe income) during the relevant period of time that could reasonably be considered to attribute to the capital gain that would be realized on a disposition at fair market value at that time. ... Applied to the present circumstances, before the dividends in situation 1 or situation 3 can be considered safe dividends, an examination must be made to determine whether the amount of the dividend could be considered to be derived from safe income on hand. ...

We have been asked whether a settlement arrangement will still be considered a structured settlement, as contemplated in IT-365R2, if the annuity contracts referred to above were commutable after the death of the claimant. ... Accordingly, under such an arrangement, the payments remaining under the guarantee period must not be capable of commutation in the event of the death of the claimant during such guarantee period in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. With respect to the annuity contract to fund the care element under a settlement arrangement, such contract must be non-commutable during the life of the claimant in order for the arrangement to be considered a structured settlement as contemplated in IT-365R2. ...

You have suggested that the shares should be considered to have been sold on a first-in first-out basis ("FIFO").  In the preceding example this would mean that all 50 of the shares sold by Lossco would be considered to have been Low Cost Shares so subsection 69(11) would apply to the disposition of 50 of the Low Cost Shares on day one. ... Our Comments In our view, three-quarters of the shares sold would, for the purposes of subsection 69(11), be considered to be Low Cost Shares and one-quarter would be considered to be High Cost Shares.  ...

Where a specified financial institution invests in term preferred shares of a related corporation, the shares will generally be considered to have been acquired in the ordinary course of business. Refer to question 62 in the 1984 Conference Report for the factors that have been considered in establishing whether shares were or not acquired in the ordinary course of business. ... Factors that have been considered in establishing whether shares were or not acquired in the ordinary course of business are as  follows: 1. ...

We are also of the opinion that the transaction which results in the tax benefit is an avoidance transaction within the meaning of paragraph 245(3)(b) of the Act, since such transaction could not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit.  Consequently, it is our view that the provisions of subsection 245(2) of the Act would apply to deny the tax benefit that would result from the series of transactions referred to above unless it may reasonably be considered that the particular transaction which gives rise to the tax benefit would not result directly or indirectly in a misuse of the provisions of the Act or an abuse having regard to the provisions of the Act, read as a whole, within the meaning of subsection 245(4) of the Act.  ... At this time, we would also mention that if Newco could be considered to be acting as agent for 24(1) in the acquisition of the Plan Shares, and this of course is a question of fact, then we would be of the opinion that by virtue of the law of agency, 24(1) would be considered to have redeemed the Plan Shares at the time they would be acquired by Newco.  ...

Some of the criteria which should be considered in making this determination are set out in Interpretation Bulletin IT-322R.  ... In this respect, it is also entirely a question of fact whether a particular activity can be considered to be "farming" for purposes of the definition in subsection 248(1) of the Act.  ... It is unlikely, though, that the maintenance and operation of a purchased woodlot solely for the purpose of extracting and selling maple syrup would be considered a "farming business". 2)     In order to meet the definition of "qualified farm property" in subsection 110.6(1) of the Act, real property must have been used in the business of carrying on the business of farming in Canada. ...

However, it is not necessary for a corporation in a situation such as yours to have surrendered its charter before a bad debt is considered to exist. ... Comments concerning when a debt is considered to be "bad" have also been included in paragraph 9 of IT-159R2 and paragraph 6 of IT-442. ... It is not necessary that the corporation be bankrupt or formally dissolved to be considered to have permanently ceased to carry on its business. ...

Where it is received as a shareholder, C.C.A. will be restricted pursuant to the paid paragraph of the Regulations unless the property is considered to be used primarily for business purposes. Generally, the property will be considered to be used primarily for business purposes if it is so used for more than 50% of the time. ... Where it is received as a shareholder, the carrying charges including interest will not be deductible unless the property is considered to be used primarily for business purposes. ...

Oulton (613)995-1787 RE Further to our memorandum dated June 15, 1984 and yours of April 2, 1984 we have considered further the question of whether XXXX is entitled to the inventory allowance on the portion of its inventory for which it has received progress payments. ... We have considered the arguments made by XXXX with repsect to "possession, use and risk" and the reference to paragraph 15 of Interpretation Bulletin IT-435R. ... We have also considered the character of the progress payments received for purposes of section 12. ...