Search - considered

You submit a number of hypothetical situations for which you ask whether the corporation would be considered to have employed in the business throughout the year more than 5 full-time employees, as required by paragraph (a) of that definition. ... Holdings Limited (94 DTC 6511), that employees working part-time cannot qualify as full-time employees, it is our view that the corporation would not be considered to have employed in the business throughout the year more than 5 full-time employees in situations 1, 2 and 4, for the purposes of paragraph (a) of the definition of specified investment business in subsection 125(7) of the Act. However, the corporation would be considered to have employed in the business throughout the year more than 5 full-time employees in situation 3. ...

Further to paragraph 10 of Interpretation Bulletin IT-516R2 entitled, Tuition Tax Credit, where a university or college considers that the students enrolled in their programs are in full-time attendance, they are generally considered to have met the full-time attendance requirement. However, a student is not considered to be in full-time attendance at a university outside Canada where the courses are taken only by correspondence, or where the student is carrying only a minor course load and is devoting much of his or her time to money earning activities. ... In the situation you describe, since you are taking courses only by home study (i.e. correspondence), you are not considered in full-time attendance. ...

Principal Issues: Is a French société en nom collectif ("SNC") that has made an irrevocable election to be taxed as a corporation in France considered a resident of France for the purposes of the Canada-France Income Tax Convention? ... The CCRA has recently also confirmed that an SNC that has made an irrevocable election to be taxed as a corporation in France would not be considered a resident of France for the purposes of the Canada-France Income Tax Convention "as it is not liable to tax in France by reason of its domicile, residence, place of management or any other criterion of a similar nature" (Technical Interpretation 2000-0048855, September 13, 2001). ... CCRA's Response We originally opined that where a French SNC makes an irrevocable election to be taxed as a corporation in France, it would not be considered a resident of France for purposes of the Canada-France Income Tax Convention as it is not liable to tax in France by reason of its domicile, residence, place of management or any other criterion of a similar nature. ...

Generally, an individual is considered to be no longer resident in Canada for tax purposes once he or she severs his or her significant residential ties with Canada. ... If subsection 250(5) applies, then you will be considered to be a non-resident of Canada from the earliest date that it applies. ... This office may be able to provide you with a non-binding determination of the date that you will be considered to have acquired non-resident status for tax purposes. ...

Reasons: The strip bond is considered to be a prescribed debt obligation and for the purposes of subsection 12(9), an amount determined under Regulation 7000(2) is deemed to accrue to the taxpayer as interest in each taxation year. ... Although, we agree with your view that the strip bond would be considered to be a Canadian security for the purposes of the election under subsection 39(4) of the Act, the purpose of the election is to ensure that in certain circumstances the security is considered to be a capital property such that any gain on its disposition is treated as being on account of capital rather than income. ...

Sarazin, CA (613) 957-2089 August 7, 2002 Dear XXXXXXXXXX: Re: Limited Partnership Units and Foreign Property This is in reply to your facsimile of March 6, 2002, which was forwarded to us by the Registered Plans Division on June 3, 2002, requesting our views as to whether or not units of a limited partnership are considered foreign property for purposes of Part XI of the Income Tax Act (the "Act"). ... Under Part L of the Income Tax Regulations (the "Regulations"), certain partnership interests are excluding from being considered foreign property for the purposes of Part XI of the Act. Under paragraph 5000(1.1)(e) of the Regulations, an interest in a "designated limited partnership" is excluded from being considered foreign property. ...

Principal Issues: Whether an individual is considered to have made a transfer or loan, directly or indirectly, to a corporation for the purposes of subsection 74.4(2)? ... However, generally speaking, in situations where a controlling shareholder / director of a particular corporation approves a transfer or loan of property by the particular corporation to another corporation and the property transferred or loaned may be considered to come from the particular corporation's retained earnings (for example, internally generated cash or investments of the particular corporation) such that the property would not represent property paid or transferred to the particular corporation, directly or indirectly, by the individual, it is our view that the transfer or loan of property to the other corporation would not be considered to have been made, indirectly, by the individual for the purposes of subsection 74.4(2) of the Act. ...

Position: Generally, the estate would not be considered to be affiliated with the corporation after the share redemption. ... You ask whether subsection 40(3.6) would apply to deny the estate's capital loss which would depend on whether, after the share redemption described above, the estate would be considered to be affiliated with the corporation. ... In the situation described, provided no single executor/trustee has de facto control over the corporation, the estate would ordinarily not be considered to be affiliated with the corporation after the redemption of all of the corporation's shares held by the estate. ...

However, any location at or from which the employee regularly reports for work or performs the duties of employment, is generally considered a regular place of employment. ... With respect to the situation you describe, we are of the view that each of the regional stores (including the home store) would be considered a regular place of employment for the district managers and therefore, travel between home and each location would be considered personal (See our files 9912537, 2000-0008807 and 2001-0102467 for further discussions relating to district managers). ...

Where, however, there has been a substantial contribution of capital or a substantial increase in the indebtedness of the partnership, such a partnership interest will not be considered an excluded interest. Generally, paragraphs (3.16)(a), (b) and (c) provide that an amount will not be considered substantial where the amount was raised under an agreement or offering document entered into or filed before February 22, 1994, and completed before 1995, or March 2, 1995 in the case of a certified film production. Subsection 40(3.17) further provides that, for the purpose of subsection (3.15), a partnership to which paragraph (3.16)(a), (b) or (c) applies shall be considered to have actively carried on the business or earned income from the property contemplated by the documents referred to in those paragraphs, continuously from February 22, 1994 until the earlier of the closing date, if any, stipulated in the document and January 1, 1995 (the "grandfathered period"). ...