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12 April 2016 External T.I. 2015-0621571E5- officer- public hospital board appointment Unedited CRA Tags 248(1): meaning of officer Principal Issues: Is a physician appointed by a public hospital board considered an officer for purposes of the Act? ... Waugh April 12, 2016 Dear XXXXXXXXXX: Re: Public hospital board appointee We are writing in response to your letter received December 4, 2015, and our conversations of January 25 and 29, 2016 (Waugh/XXXXXXXXXX), concerning whether a member of the professional staff (Professional) of a public hospital, who is appointed by the board of directors of the public hospital (Board), is considered to hold an office for the purposes of the Income Tax Act (Act) and the Canada Pension Plan. The CPP/EI Rulings Division, Field Operations Section, will respond under separate cover regarding whether the Professional is considered to hold an office under the Canada Pension Plan. ...

Reasons: The assigned school is considered the employer's place of business, not the administration office of the school board. ... Travelling between the employee's home and place of employment is considered to be personal travel and the expenses relating to such travel are not deductible in computing income from an office or employment. ... Where a substitute teacher is hired by a school board to teach at any one of the schools under its jurisdiction, the employer's place of business is considered to be the particular school at which the substitute teacher has been assigned to teach on any particular day. ...

In this regard, any location at or from which the employee regularly reports for work or performs the duties of employment is considered a regular place of employment. However, where an employer requires an employee to proceed directly from home to a point of call other than the employer's place of business to which the employee reports regularly or to return home from such a point, these particular trips are not considered to be of a personal nature. As well, where an employee is required to travel directly from one work location to another work location, such travel is considered to be employment-related travel. ...

You note that, to date, the payments have been minimal and that the corporation has taken no income deduction for any payments made to investors as those payments have been considered a return of capital; further, those payments have been reduced from investor balances which are shown as long-term debt on the balance sheet. ... Generally, to determine the nature of a payment to an investor, the intent of the parties as well as the specific agreements relating to the investment will need to be considered. ... Where amounts are paid to investors based on sales that the corporation makes, in our view, the payments to the investors would appear to be similar to a royalty, or to a payment based on production or use, which is considered income under paragraph 12(1)(g) of the Income Tax Act. ...

If the primary purpose of the grant is to carry out research for its own sake (for example, to further knowledge in a particular field by discovering new facts, or by reinterpreting existing knowledge), the award is considered to be a research grant and would be included in the recipient's income under paragraph 56(1)(o) of the Act. It may be that the recipient's education and training is also furthered by such research, but such a factor does not alter the primary purpose of the grant (i.e., its character does not change), provided the educational or training benefit could be considered to be a secondary purpose of the grant or an inevitable but incidental benefit. ... It is understood that research might be conducted in pursuing this goal, but unless research is the primary objective, this would not preclude the grant from being considered a scholarship for purposes of subparagraph 56(1)(n)(i) of the Act. ...

The tax treatment of rental income earned by a non-resident person depends upon whether or not the rental operation is considered to be a business carried on in Canada. Where the rental operation is not considered to be a business, the gross rental income is subject to non-resident withholding tax pursuant to paragraph 212(1)(d) of the ITA. ... Where a business is considered to exist, taxable income earned in Canada will generally be computed pursuant to subsection 115(1) of the Act and the non-resident person will be taxable under Part I of the Act. ...

As explained in paragraphs 5, 6 and 16 of Information Circular IC70-6R3, an Advance Income Tax Ruling, which is binding upon the Canada Revenue Agency and the cost of which is borne by the taxpayer benefitting from the ruling, will only be considered when such information is included in the request. ... Subsection 20(3) of the Act provides, in general terms, that where a taxpayer uses borrowed money to repay money previously borrowed, the new borrowed money is considered to be used for the purpose for which the original borrowed money was used. So, in the case of the hypothetical scenario described above, pursuant to subsection 20(3) of the Act, the Second Loan is considered to have been used by the Taxpayer to fund the purchase price of the rental properties. ...

Regardless of who pays, under subsection 5(1) of the ITA the amounts are generally considered income from an office or employment. 2. ... The settlement amounts are, however, regardless of who makes payment, generally considered to be income from an office or employment, i.e. ... Therefore, where a union distributes a settlement amount to the individual union members, it is considered a "person" required to withhold and submit all appropriate taxes and issue the related T4s. ...

3 October 2011 External T.I. 2011-0411181E5- medical expense- endovenous laser therapy Unedited CRA Tags 118.2(2)(a) Principal Issues: Whether endovenous laser therapy for varicose veins would be considered cosmetic surgery? ... Based on the information provided, it is our view that the cost of the EVLT procedure paid to a medical practitioner, or to a public or licensed private hospital for a patient with symptomatic varicose veins would not be considered to be purely cosmetic and would qualify as an eligible medical expense under paragraph 118.2(2)(a) of the Act. ... Paragraph 39 of the current version of Interpretation Bulletin IT-519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, indicates that for purposes of the meaning of the phrase "brace for a limb" in paragraph 118.2(2)(i) of the Act, that phrase is considered to include "woven or elasticized stockings where these are of a kind that are carefully fitted to measurement or are made to measure. ...

You have asked for our views on whether, for the purposes of the QSBCS definition, 50% or more of the fair market value of the assets of the corporation would be considered to have been used in an active business carried on primarily in Canada. ... The definition of a QSBCS contains three main tests that must be met before the individual's shares can be considered as being QSBCS for these purposes. ... Similarly, where a corporation's business involves the rendering of services, that business is generally considered to be carried on at the place or places where the services are rendered or performed. ...