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A deposit left with a securities broker may be considered as being a cash deposit if it is left in that form for only a short period (one or two days). A margin deposit would otherwise be considered as a debt security and would not generally qualify as a security or a marketable security. ... This was considered to be an unintentional result and we therefore agreed not to apply those provisions where the foreign currency was converted to Canadian currency or used to acquire a qualified investment within a reasonable period of time. ...

Rent is considered to include revenue for the use or occupation of the property and revenue for ancillary services offered to a person using or occupying that same property. Paragraph 6 of IT-195R4 states that where the services extend beyond merely ancillary revenue from the provision of those services would not be considered rent derived from that property. Where a property does not produce gross revenue that is rent or where one of the exceptions in subsection 1100(14.2) is applicable the property will not be considered to be a rental property. ...

The Queen, 92 DTC 6320, suggested that the situs of the employer should not be the only factor considered, and has directed that all connecting factors must be considered in making this determination. ... The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization. ... Where an organization which would otherwise not be considered to be resident on reserve is asserting that it satisfies the definition because it holds its board of directors meetings on reserve, it should generally be considered to satisfy the definition if management and control over the organization is legitimately exercised during those meetings. ...

Principal Issues: whether individual or total expenses considered in determining "reasonableness" of an expense and whether a MP must all for all income received including any tax-free allowances before s/he may deduct expenses Position: individual and total expenses considered. While the Dept has no authority to require an itemized accounting of an allowance which is exempted from income by statute, the fact that a tax free allowance has been received would be taken into consideration in determining the "reasonableness" of an expense which one seeks to deduct if the purpose of the allowance is to defray that type of expense for which a deduction is sought Reasons: 952087 XXXXXXXXXX Sandra Short October 20, 1995 Dear XXXXXXXXXX: Re: Reasonableness of Expenses incurred by a Member of Parliament This is in reply to your letter of July 25, 1995 which queries whether only individual expenditures are considered or whether the total of all expenses being deducted is also considered in determining the "reasonableness" of an expense. ... (Tax Appeal Board) 58 DTC 307, the Board considered as unreasonable a claim of $22,500 for advertising expenses incurred by a lumber company in sponsoring local sports events and reduced the deduction to $5,000, having given consideration to the size of the taxpayer's business, the patronage to be expected, the form of the advertising, the locality and the size of the population reached by the advertising. ...

Position: 1)Question of fact although confirmed that employment or office with person described in 60(j.1)(iv) is not for that reason alone considered to be employment or office with an affiliate; 2)should not exceed what is a reasonable amount in an arm's length situation. ... With respect to the several situations described in your letter, it is a question of fact whether an individual will be considered to have continued an employment or office with an employer or one of its affiliates when services are subsequently provided under a new arrangement. ... As stated in the 1992 Prairie Tax Conference, in order for the amount of a retiring allowance to be considered reasonable in a non-arm's length situation, it should not exceed the amount that would be considered reasonable in an arm's length situation. ...

Any reimbursed legal fees related to the portion considered to be a retiring allowance would be required to be included in income under 56(1)(l.1) and deductible to the extent permitted under 60(o.1) of the Act. ... A determination as to whether a negotiated settlement constitutes a reasonable amount or an amount equivalent to what a tribunal may award as damages in respect of pain and suffering would require a comparison to similar cases that have been considered by the tribunal. To the extent that the settlement amount reflects court awards under comparable circumstances the amount received would be considered as not subject to tax. ...

The nature of the activities must be considered. XXXXXXXXXX It is therefore our view that the XXXXXXXXXX carries on commercial activities. ... This condition is not met as the commercial activities carried on by the XXXXXXXXXX would not be considered social, cultural, educational, or economic development of Indians. Although part III of the XXXXXXXXXX incorporation articles describes objects and purposes that could be considered social, cultural, educational, or economic development of Indians the activities the XXXXXXXXXX currently carries on are of a commercial nature. ...

It is a question of fact whether an organization would be considered to devote all its resources to charitable activities carried on by itself where it acquires shares of a corporation. ... Again, it is a question of fact whether an organization would be considered to devote all its resources to charitable activities carried on by the organization itself where it loans funds to an organization, presumably in excess of its disbursement quota. Similar to the situation discussed above in respect of dividends, the interest income generated from the investment would normally be considered "income from property" for which there is no stated preclusion. ...

Question 1 Where a trust company acting in its capacity as trustee lends securities that constitute trust property, will the trustee or the trust beneficiary be considered the security lender for purposes of subsection 260(1) of the Act and the withholding exemption in subparagraph 212(1)(b)(xii) of the Act? Answer In our view, where the trust company, acting in its capacity as trustee, lends securities that constitute trust property, it is neither the trustee nor the trust beneficiary but rather the trust that will be considered to be the securities lender. ... Answer As stated in answer to the prior question, in situations where the trust company is acting in its capacity as a trustee, it is the trust that is considered to be the securities lender and accordingly the requirements of subparagraph 212(1)(b)(xii) will not be met. ...

Principal Issues: Whether a business to be incorporated would be considered to be a personal services business. ... However, you are concerned that the business might be considered to be a "personal services business", since, initially, you will be providing all of your services to one client. ... Therefore, the question to be determined in the situation you describe is whether you could reasonably be considered to be an employee of the client, were it not for your incorporated business. ...