Search - considered

Is the court order considered to be a court order made after April 1997 with the result that it falls within the definition of “commencement day” in subsection 56.1(4) of the Act. ... Reasons: The court order is considered to have been “made” after April 1997 which is the day it was rendered or commenced to have legal force and effect.. ... It is also our view that the court order is considered to have been made when it has been rendered or commences to have legal force and effect. ...

Testamentary Trusts This is in response to your memorandum dated July 20, 1998, concerning the question of whether the above named trusts could be considered testamentary trusts as defined in subsection 108(1) of the Act. XXXXXXXXXX The taxpayer’s representative relies on an excerpt from a technical interpretation quoted in a 1993 edition of The Canadian Taxpayer which basically states that a trust funded from the proceeds of a life insurance policy available on the death of an individual will be considered to be a testamentary trust even where the terms of that trust have been established during the taxpayer’s lifetime. ... Our Comments The document quoted by the taxpayer in support of their claim that the trusts in question should be considered testamentary is not applicable to this particular situation. ...

X used to be resident in Canada; however, he moved to a foreign country a few years ago and is now considered a non-resident of Canada for income tax purposes. ... X was resident in Canada for many years, all or substantially all of the retiring allowance is considered to be in respect of years of service while Mr. ... As stated in Interpretation Bulletin IT-76R2, that expression is generally considered to mean that throughout a particular year, the taxpayer's regular place of employment was outside Canada and his duties in Canada were limited to a few brief visits to carry out the duties of his employment. ...

File # 933399 Principal Issues: Whether periodic payments out of a RRIF are considered to be "periodic pension payments" under paragraph 2(a) of Article XVIII of the Canada-US Convention. ... Periodic payments out of a RRIF are considered to be "periodic pension payments" and subject to 15% withholding tax under paragraph 2(a) of Article XVIII of the Canada-US Convention. ... Also, in paragraph 3 of Article XVIII of the US Convention, the term "pensions" includes any payment from a "retirement plan" which is generally considered to include a RRIF. ...

If on the other hand they are reported on line 130 you would like to know if they would be considered eligible as "contributory earnings" for CPP contributions and as "earned income" for RRSP contributions. ... In our view amounts included in a taxpayer's income by virtue of subsection 12(10.2) would not be considered "earned income" within the meaning of paragraph 146(1)(c) of the Act. It is also our view that such NISA amounts would not be considered eligible contributory earnings in calculating Canada Pension Plan Contributions for the purposes of determining the deduction from tax payable under section 118.7 of the Act. ...

As stated in paragraph 1 of Interpretation Bulletin IT-432R "Appropriation of Property to Shareholders", subsection 15(1) of the Act requires the value of any distribution of corporate property to a shareholder which would not otherwise be included in income and which cannot properly be considered as a return of capital or as having been received in the shareholder's capacity as an employee to be included in that shareholder's income in the year. ... The amount, if any, that is considered to be reasonable must be based on the facts of each particular case. ... It would not be considered reasonable for a shareholder who provides no services to the corporation in which he holds shares to receive a salary or management fees. ...

Position TAKEN: taxable Reasons FOR POSITION TAKEN: It can reasonably be considered that one of the main purposes for the use of an employer on the reserve is to establish a connecting factor between the income in question and a reserve and only 6% of the population lives on a reserve. ... However, where it can reasonably be considered that one of the main purposes for the existence of the employment relationship is to establish a connecting factor between the income in question and a reserve, the income will not be tax-exempt. ... However, since the avowed objective of the XXXXXXXXXX Indian Education Authority is to qualify Indian employees of the XXXXXXXXXX School Division for the tax exemption, it is unlikely that we would exempt them on their employment income since it could reasonably be considered that one of the main purposes, if not the only one, behind the use of the unidentified on-reserve employer is to establish a connecting factor between the income in question and a reserve. ...

For the purposes of the Act, a boat is considered to be a personal-use property if it is owned primarily for the personal use or enjoyment of a taxpayer or someone related thereto. ... With regard to the act of honouring a guarantee of a corporation, it is the Department's view, as indicated in paragraph 4 of Interpretation Bulletin IT-239R2, that a taxpayer is considered to have acquired a debt at the time the guarantee is honoured for a cost equal to the payment made pursuant to the guarantee. ... It should be noted that where a shareholder has guaranteed the debts of his corporation for no consideration, the guarantee will generally be considered not to have been given for the purpose of gaining or producing income. ...

While the foreign currency borrowing and the forward contract are two separate transactions, the Department generally considers that the use to which funds borrowed in a foreign currency have been put will be a factor in determining of the nature of any gain or loss incurred or realized with respect to a forward contract used to hedge any exchange exposure relative to that borrowing. 2.In IT-95R, paragraph 3 states that where borrowed funds are used in the ordinary course of a taxpayer's business, any foreign exchange gain/loss is considered to be on income account. ... Department's Position There are no specific criteria under which funds borrowed in a foreign currency would be considered to be fixed or permanent capital and each case must be reviewed and determined on its own facts. ... Either a three year or a five year loan denominated in a foreign currency could be considered as part of the fixed or permanent capital of a corporation depending upon the facts of a particular situation. ...

As such, we confirm your understanding of the administrative practice as follows: a)Monies received under an agreement to provide funeral services in the future, which are placed in trust and which cannot be withdrawn until the agreed services are rendered, are not considered to be received by the funeral director for purposes of paragraph 12(1)(a) of the Act and are, accordingly, not income in the year of receipt. b)The monies placed in trust are considered to be received by the funeral director in the year the services are rendered. c)Interest on such monies that is required, either by the governing provincial law or by the agreement of the parties, to be held in trust until the services are rendered, is considered receivable, for the purpose of paragraph 12(1)(c) of the Act, in the year the services are rendered, rather than in the year the interest accrues. d)When the plan is cancelled and the monies are returned to the contributor, the accumulated interest is to be reported by the contributor in the cancellation year. ...