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Pursuant to subparagraph 6801(a)(iv) of the Regulations, any interest or additional amounts that may reasonably be considered to have accrued for the benefit of the employee (XXXXXXXXXX in this case) in a year must be paid in that year to the employee. ... If the employee elects to leave the interest in the DSLP instead of withdrawing it each year, it will be considered a contribution by the employee to the plan. Interest income earned on these amounts will also be considered employment income and must be reported annually by the employee. ...

The Department's concern has been whether or not these security arrangements could also be considered as funding for the RCA. We have however generally stated that if specific assets are not specifically set aside for the RCA and can be used for other purposes or to satisfy other creditors, they would likely not be considered as separate contributions to the RCA. ... In addition to the above, a contractual obligation by the company to prepay the amount of the LOC to the bank on demand would not constitute a contribution to the RCA in and of itself; however, any payment to or under the RCA by the bank under the terms of the LOC to the trust is considered a contribution to the RCA subject to the RCA tax since such a payment is made on behalf of, and is repayable by the employer. ...

Where a payment to a shareholder pursuant to his/her right of dissent arises as a result of transactions the primary purpose of which is to realize a distribution of corporate surplus that is taxed as a capital gain rather than a dividend and the capital gains are taxed at a lower rate, it is our view that it would constitute an avoidance transaction and subsection 245(2) would be applicable unless it is not considered to result in an abuse of the Act for the purposes of subsection 245(4) of the Act. ... In particular, section 84.1 describes the circumstances in which consideration received by an individual on the disposition of shares of a corporation should be considered to have been received as a dividend.  Transactions contrived to avoid the application of section 84.1 would be considered to result in an abuse for the purposes of subsection 245(4) of the Act.  ...

RULINGS DIRECTORATE CORRESPONDENCE SUMMARY Principal Issues: Whether B, the younger brother of A, will be considered a "child" of A within the meaning of that term as defined in subsection 70(10). ... In particular you have enquired whether a brother of an individual could, for the aforementioned purpose, be considered to be the child of that individual. ... " Consequently, some of the factors considered in determining whether a certain relationship between a person and a child constitutes an adoption in fact are the actual control and custody, exercise of parental care and responsibility on a continuing basis, dependency, and proximity to each other including the right of determining the residence, protection, care (physical, mental, and moral), education, and religion. ...

Principal Issues: Whether donation of storm sewer and easement by individual to municipality could be considered a gift and if yes would it be a gift to a municipality or to Her Majesty. Position TAKEN: Storm sewer and easement considered property and could be transferred by way of gift. ... " Consequently the storm sewer and easement would be considered property and could for purposes of section 118.1 of the Act be transferred to the municipality by way of gift. ...

In respect of this situation, you asked: 1) What is meant by the term "real property" in paragraph (f) of the definition for Canadian resource property in subsection 66(15) of the Act. 2) What is meant by the term "mineral resource content" in paragraph (f) of the definition for Canadian resource property in subsection 66(15) of the Act. 3) Whether the $50 million would be considered to be a Canadian resource property and Canadian development expense. ... In the above-noted hypothetical situation, the 25% interest in the undeveloped mining lease would be considered as Canadian resource property and the $50 million paid for such interest would be considered as Canadian development expense, provided that this amount represents fair market value of such interest, that the minerals to be extracted qualify as mineral resource within the meaning of the term in subsection 248(1) of the Act, and the above-noted other requirements are met. ...

In particular, you ask whether the interest on the second award is considered prejudgment interest in respect of the second award or post judgment interest in respect of the first award. ... Based on the information provided by WCB in their letter dated March 2, 1995, it would appear that any interest paid in respect of either award would be considered prejudgment or pre-decision interest. ... Since the lump sum payable as a result of the second decision would obviously not include any amount that was payable as a result of the first decision and the payment was made before such time as post-judgement interest became payable in respect of that decision, then the entire amount of interest paid as a result of that second decision would be considered prejudgment or pre-decision interest. ...

The changes made to and overall usage made of the property are not sufficient to be considered a disposition. 951429 XXXXXXXXXX J.A. ... Our understanding of the situation described in your letter is that, while the proportion of the house that was rented out was indeed substantial, it would likely still be considered ancillary to the overall use made of the property as a whole. ... Based solely on the circumstances as described above, it is our view that the conversion to and then from income-producing purposes would not be sufficient to be considered a disposition of the property for tax purposes. ...

If you and your sister own separate parcels of land, the exchange of one parcel for another would be considered a barter transaction which would give rise to a disposition and a possible capital gain. Since you and your sister are not considered to be dealing at arm's length, according to paragraph 69(1)(b) of the Income Tax Act (the "Act"), both you and your sister would be deemed to have received proceeds of disposition equal to the fair market value of your respective parcels of land. If you and your sister jointly own two parcels of land and you propose to exchange with one another your undivided interests, such that you would each have a divided interest (i.e., separate ownership) in a separate parcel of land, the exchange would be considered to be a barter of interests and would give rise to a taxable disposition to which the rules of paragraph 69(1)(b) of the Act would apply. ...

Reasons FOR POSITION TAKEN: 1.The proper treatment for purposes of the Act of amounts received by a taxpayer in respect of sales of timber is a question of fact which can only be resolved with reference to all of the facts of a particular situation. 2.Standing timber is not considered to be an asset distinct from the land on which it stands. 5-951842 XXXXXXXXXX C. ... Generally, where a taxpayer acquires land with the specific intent of selling timber, the taxpayer is considered to be in the business of logging and, therefore, amounts received by the taxpayer in respect of sales of timber are business income. ... In such a case, the amounts received by the taxpayer would be considered to be proceeds from a part disposition of capital property (the land). ...