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An amount is considered to be payable if there is an absolute and unconditional legal obligation to pay the amount even though payment may not be due until a later date. ... The phrase “in respect of the year” was considered in MNR v. Midwest Abrasive Co. of Canada Ltd. [[1973] C.T.C. 548] 73 DTC 5429 (FCTD) and Fernwood Construction of Canada Ltd. v. ... XXX (a) XXX CCA is considered to be relevant in determining whether an activity has a reasonable expectation of profit, according to the response given to question 35 of the 1987 Revenue Canada Round Table; and (b) in accordance with subsection 9(3), income from property does not include any capital gain from the disposition of that property XXX ...

Former IT-436 contains comments in paragraphs 9 & 10 which, although not included in IT-436R due to the introduction of new 5 year time limit restrictions, are still considered relevant in some situations. ... The extension may occur before the original due date and before the end of the vendor's taxation year for which the reserve is being considered or even after the original due date but before the end of the vendor's taxation year for which the reserve is being considered. ...

You requested our views as to whether the property would be considered qualified farm property in the following hypothetical situations: Situation # 1 1. ... Consequently, the subsection 45(1) deemed disposition would not in and by itself preclude the property from being considered qualified farm property at any subsequent time. ... Situation #2 Where a taxpayer sells property and then reacquires it so that section 79 of the Act applies he would for purposes of paragraph (vii) of the definition of qualified farm property in subsection 110.6(1) be considered to have acquired the property on the date of reacquisition. ...

XXX Our comments are as follows: (1) Interpretation Bulletin, IT-364 comments on a number of situations outlining the time at which a business would be considered to begin. ... Persons who are contemplating a future partnership, or who have only entered into an agreement that they will at some future time become partners, cannot be considered as partners before the arrival of the time agreed upon....” ... If the Partnership was considered to have commenced at the time any of the activities described in 6 above commenced, one would expect that any costs related thereto would be borne by the Partnership. ...

XXX Our Opinion We have recently considered the issue on which you have requested our opinion in relation to another takeover bid involving two major corporations. ... We concluded that XXX prepared as a result of a takeover bid could not be considered to be for the purposes of gaining or producing income and thus would not be deductible under paragraph 18(1)(a) of the Act. ... Although not discussed in the attached material, we note that it is our opinion that the expenditures would also not be considered to be eligible capital expenditures since, as mentioned, they were not incurred to gain or produce income. ...

7 January 1991 Income Tax Severed Letter- Manufacturing and Processing Profits- Research and Development of Customized Computer Software Unedited CRA Tags 125.1, IT-145R Dear Sirs: Re: Subsection 125.1- Manufacturing and Processing Profits Research and Development of Customized Computer Software This is in reply to your letter of October 5, 1990 wherein you requested our comments as to whether research and development of customized software which is sold to clients would be considered a qualified activity for purposes of section 125.1 of the Income Tax Act (the Act). ... The issue of whether the development of computer programs qualifies as manufacturing and processing for purposes of section 125.1 of the Act has been judicially considered. ... In order for the computer tapes or disks, with information transferred to them, to be considered goods for sale, they would either have to be sold as finished products to the general public or sold to a purchaser who entered into a contract for the sale of a good rather than a contract for the supply of a service (labour, skill and materials). ...

Trade accounts payable are, however, considered to be “other indebtedness of the corporation” which would be included in the determination of taxable pursuant to paragraph 181.2(3)(f) of the Act only to the extent that they have been outstanding in excess of 385 days. ... This assumes that the Canadian subsidiary is not a party to the arrangement with the Japanese bank such that the amount would be considered as a loan or advance to the Canadian company. ... You had additionally requested our views as to whether the factored receivable in this case would be considered a banker's acceptance. ...

21 December 1992 Income Tax Severed Letter 9231357- Indians and RRSPs and Retiring Allowances Unedited CRA Tags 81(1)(a) December 21, 1992 SASKATOON DISTRICT OFFICE Business and General Colleen Mah, Chief Division Enquiries Division Glen Thornley (613) 957-2101 923135 Re: Registered Retirement Savings Plan ("RRSP") and Status Indians This is in reply to your letter of October 19, 1992 asking whether payments received out of an RRSP or a RRIF by a Status Indian are considered exempt income to the Status Indian. ... In this respect payments under an RRSP or a RRIF are considered sourced at the head office of the financial institution that issued them and are, therefore, not sourced on a reserve unless, of course, the head office of the financial institution (credit union, trust company, etc) happens to be situated on a reserve. Where this is the case the RRSP payments would be considered as personal property of an Indian on a reserve and exempt from taxation by virtue of section 87 of the Indian Act and paragraph 81(1)(a) of the Income Tax Act. ...

Brooks (613) 957-2103 Attention: XXXXXXXXXX December 2, 1992 Dear Sirs: Re: Assets Used in an Active Business This is in reply to your letter of August 26, 1992 in which you requested our opinion as to whether certain levies which a corporation must pay would be considered to be assets used in an active business for purposes of the definition of qualified small business corporation share in subsection 110.6(1) of the Income Tax Act. ... Generally, where substantial amounts of cash and deposits in excess of that required for use in the business are retained in the corporation on a permanent basis, such funds would not be considered to be used in the business. ... Furthermore, since such security deposits cannot be received by him until he performs certain land rehabilitation work, such deposits could not, in our view, be considered to be in excess of what was required for use in the business, until such time as the deposits become refundable. ...

As indicated therein, the fact that a particular activity is done only once would not preclude the possibility that the person performing the activity is engaged in a business transaction, and therefore could be considered to be acting in the course of a business. Furthermore IT-459 states that in determining whether a particular transaction is to be considered a business, all the facts and circumstances must be considered. ...