Search - considered

Principal Issues: Whether 3,000 acres of new farmland can be considered replacement property for 200 acres of farmland. ... In providing general comments on this situation, we gave the opinion that this was likely a business expansion and only a small part of the new farm could be considered a replacement for the old farm. ... Since tax policy issues and amendments to the legislation are the responsibility of the Department of Finance, they would have to be considered by that Department. ...

Albino (94 DTC 6071) (the “Case”) supports your argument that the payment of an amount in lieu of statutory notice of termination could also be considered a payment in recognition of long service and, as such, the payment would be a retiring allowance within the meaning assigned by paragraph (a) of the definition of retiring allowance in subsection 248(1) of the Income Tax Act (the “Act”). ... A payment of the first type would be considered employment income and a payment of the second type would be considered a retiring allowance. ...

.-     The holdbacks and unapproved billings at the time of transfer would not be considered to be receivable (Colford case), however, they would become receivable shortly after the transfer. You would like to know if on the sale of the whole business including all receivables, whether unapproved billings and unapproved holdbacks would be considered to be eligible property for the purposes of section 85 of the Act.  ... Commentary In our view, if a taxpayer in the above situation sells his whole business concern, the unapproved billings and unapproved holdbacks would be considered to be eligible property for the purposes of section 85 of the Act as capital property.  ...

To the extent that the annuity payments during the lifetime of the donor are not expected to exceed the amount of the contribution, the difference will be considered to be a gift and the payments to the donor from the charity will be considered to be capital payments. ... As this type of an arrangement is considered to be an annuity for income tax purposes it is subject to tax under the rules relating to annuities except in the very narrow circumstances of paragraph 3 of Interpretation Bulletin IT-111R. ...

Position TAKEN: Question of fact, but generally payment would not be considered an employer contribution and therefore not excluded from paragraph 6(1)(a). ... Past service contributions made by the employer in respect of the employer's obligations to the plan in respect of the employee will not be considered a benefit to be included in the employee's income pursuant to paragraph 6(1)(a) of the Act. ... However, in our opinion, if the employer is not required by the terms of a plan to make a particular contribution but agrees to do so as a result of an election by an employee to purchase past service, such a contribution generally would not be considered an employer contribution. ...

PRINCIPAL ISSUE: Whether a Canadian Government Bond denominated in a foreign currency is considered "foreign property". Whether the foreign currency held from the maturity of a Canadian Government Bond in a foreign currency is considered a non-qualified investment and/or a foreign property, if promptly reinvested into another Canadian Government Bond in a foreign currency. ... Where a trust holds foreign currency after the disposition of an asset denominated in foreign currency, it is the Department's view that provided the foreign currency is converted to an otherwise qualified investment within a reasonable time (for example, one month), the trust would not be considered to have acquired a non-qualified investment. ...

Principal Issues: Mandatory Inventory Adjustment Position: Where an amount of a purchase price has been allocated to unharvested trees, these trees would be considered purchased inventory for purposes of paragraph 28(1)(c) Reasons: ITA, IT-373R special release XXXXXXXXXX 962802 Attention: XXXXXXXXXX November 7, 1996 Dear Sirs: Re: Mandatory Inventory Adjustment This is in reply to your facsimile of August 22, 1996 in which you request a technical interpretation with respect to the provisions of the mandatory inventory adjustment. ... In certain factual circumstances it is considered that farming includes raising fish, market gardening, the operation of nurseries and greenhouses, and the operation of a chicken hatchery.... ... In our view, where an amount of the purchase price is allocated for unharvested trees in the field, these trees would be considered purchased inventory and would be subject to the mandatory inventory adjustment pursuant to paragraph 28(1)(c) of the Act. ...

The U.S. partnership withholds U.S. taxes on the distributions since they are considered to be dividends paid by a corporation for U.S. ... In our opinion taxes withheld on the distribution of profits from such a U.S. partnership would qualify as "business income tax" pursuant to paragraph 126(7)(a) where the distribution of profits is considered to be "business income" as opposed to "income from property". Where the income is determined to be "income from property, withholding taxes on the distribution of profits would be considered as being "non-business income tax" pursuant to paragraph 126(7)(c). ...

This is similar to the position stated in paragraph 2 of Interpretation Bulletin IT-50R that a taxpayer is considered to have acquired a property on the date on which he has all the incidents of title even though legal title remains with the vendor. ... Even if an individual is not considered to have acquired the home at the beginning of the contract, he has an interest in it as the contracts require the vendor to repurchase the purchaser's interest at specified amounts. ... Consequently it is our opinion that an individual who already has an interest in a home is considered to have previously acquired it and generally cannot participate in the RRSP Home Buyers' Plan because of the provisions in the definition of eligible amount requiring him to acquire it after February 25, 1992, or not more than 30 days prior to withdrawing funds from his RRSP. for DirectorFinancial Industries DivisionRulings Directorate ...

CAPITAL EXPENDITURES A lease inducement payment made in circumstances outside the ordinary course of a payor's business operations is considered to be a non-deductible capital expenditure when it can be established that it yields a benefit of an enduring nature to the landlord. ELIGIBLE CAPITAL EXPENDITURE A lease inducement payment made in the ordinary course of a payor's business of property rental to obtain the lead or anchor tenant(s) for a project is considered to be an eligible capital expenditure where such payment yields a benefit of an enduring nature to the landlord. ... CURRENT EXPENDITURE A lease inducement payment made in the ordinary course of a landlord's business of property rental to a non-anchor tenant is considered to be on income account. ...