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We hereby replace ruling C set out in the Ruling with the following: Absorbco, as the surviving corporation, will continue and maintain its existing taxation year and will not be considered to have disposed of its assets upon the merger described in paragraph 19 above. We hereby replace ruling F set out in the Ruling with the following: Absorbco, as the surviving corporation, will continue and maintain its existing taxation year and will not be considered to have disposed of its assets upon the merger described in paragraph 20 above. ...

Position: The shares of XXXXXXXXXX are considered to be a dividend. Reasons: It is a pro-rata distribution by XXXXXXXXXX to its shareholders. ... Under Canadian income tax law, any share distributed in such a manner to Canadian shareholders is considered to be a dividend which is subject to tax. ...

Our Comments It is our opinion that the reimbursement to the RRSP described above will not be considered a benefit taxable to the annuitant of the RRSP nor will it be considered an advantage extended to the annuitant of the RRSP in contravention of the rules for registration of an RRSP. ...

In our view, interest earned on a compound interest CSB up to November 1 preceding the date of death of a bondholder is considered to be a "right or thing" for the purposes of subsection 70(2) and (3) of the Act, to the extent that the amount was not included or required to be included in the deceased's income for the year or a preceding year. Interest accruing from November 1 to date of death is considered to be an amount referred to in paragraph 70(1)(a) of the Act and therefore not eligible for inclusion in a separate return under subsection 70(2). ...

The lump sum payment may consist of some or all of the following" Severance pay up to 28 weeks' salary Pay in lieu of unfulfilled surplus period (cash out) up to 26 weeks' salary Additional separation benefit up to 15 weeks' salary Cash out of unused accumulated  vacation pay may be several months in some cases As we discussed (Roy-Moubarak/Douglas), the unused vacation pay is not considered a retiring allowance but rather is income from employment to which the employee is entitled on retirement. ... With respect to the severance pay, the unfulfilled surplus period pay, and the additional separation benefit, such amounts would be considered "retiring allowances" for the purposes of the Income Tax Act and it is our position that it is permissible for the employer to spread the payment of such amounts to the retiree over an unrestricted period of time. ...

6 September 1991 External T.I. 9114095 F- Meaning of Retiring Allowance Unedited CRA Tags 248(1) Retiring allowance 5-911409 Dear Sirs Re:  Retiring Allowance Subsection 248 (l) of the Income Tax Act (the "Act") This is in reply to your letter of May 14,1991 wherein you request confirmation that the payment to be made under the proposed agreement will be considered a retiring allowance as that term is defined in subsection 248(1) of the Act. ... Amounts paid under pension plans are generally considered to be superannuation or pension benefits.  ...

Whether or not, at a given time, the receipt of revenue under a revenue guarantee or under a periodical distribution agreement may be reasonably considered certain can only be determined by examining all of the circumstances surrounding a particular case and, in particular, the contractual conditions that have to be fulfilled before revenues are payable. At a particular time, if there is a risk of uncertainty that the conditions of the periodical distribution agreement can in fact not be fulfilled, it will be assumed that the full amount, if any, that may reasonably be considered to be the portion of revenue to be received under the revenue guarantee, will not be due until the time the payment under the revenue guarantee is due. ...

In our view, the additional premium can be considered as a premium "payable in respect of the policy year ending in the year" notwithstanding that it could also be considered to be in respect of some future policy year as well.  ...

In general, as we stated in our previous letter, amounts paid into a plan in connection with the assets of a plan are not considered advantages to the plan's annuitant.  Expanding on this, we can also state that expenses incurred by a trustee in the overall maintenance of a plan's assets will generally be considered to be in connection with the plan's assets. ...

Our Comments Since the situation set out in your letter appears to relate to actual taxpayers and proposed transactions that would ordinarily be considered by way of an advance income tax ruling request, we are unable to respond to the specifics of this situation.  ... With respect to the application of subparagraph 15(2)(a)(ii) of the Act, it is our view that both a city home and a cottage could simultaneously be considered to be dwellings for the individual's habitation in the circumstances described in your letter.  ...