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As requested, we have considered the situation outlined in your letter and have provided some comments below. ... Any loan payments, or portions thereof, that are made with farming income will be considered to be capital contributions by the husband to acquire the property if he is the only one carrying on the farming business and reported all of the income therefrom. ... If the business income from the partnership is not allocated between the spouses on a reasonable basis, the Agency may adjust each partner's share to an amount which is considered reasonable pursuant to subsection 103(1.1) of the Act. ...

For the purposes of the identical property rules that are set out in section 47 of the Income Tax Act (the "Act"), will the Canco exchangeable shares be considered to be identical to the USco common shares? ... To the best of your knowledge, and that of the Individual involved, none of the issues contained herein: (i) is in an earlier return of the Individual or a related person; (ii) is being considered by a tax services office or taxation centre in connection with a previously filed tax return of the Individual or a related person; (iii) is under objection by the Individual or a related person; and (iv) is before the courts or, if a judgement has been issued, the time limit for appeal to a higher court has not expired. ... Ruling Requested and Given Provided that the preceding statements constitute a complete and accurate disclosure of all the relevant facts, proposed transactions, and purpose of the proposed transactions, and provided that the proposed transactions are completed in the manner described above, we confirm that the Canco exchangeable shares and the USco common shares will not be considered to be identical properties for the purposes of section 47 of the Act. ...

As a result, no gain or loss is recognized on the transfer of assets to a bare trust; however, as stated in the attached copy of Income Tax Technical News No.7, under the heading Bare Trusts, the transferor would continue to be considered the owner of the property for all purposes related to income tax. The information contained under the headings Revocable Living Trusts, Protective Trusts and Bare Trusts sets out the criteria to be considered in determining whether a change in beneficial ownership has occurred upon the transfer of assets to a trust. ... Under the 21-year rule, certain trusts are considered to have disposed of all their assets on the dates specified in the Act for an amount equal to their fair market value at that time and to have reacquired them for the same amount. ...

Although foreign currency can be bought and sold and as such could be considered a commodity, it is our position that in the context of the paragraph 2121)(b) postamble, "commodity price" should not be considered to include foreign currency fluctuations, but rather in general is to be limited to (for example) prices for tangible commodities manufactured, extracted or grown. ... It is our view that interest computed by reference to the Dow Jones Industrial Average can be considered to be computed by reference to a commodity price (the commodity being the stock on which the Average is based). ...

Position: No Reasons: A contract, which does not involve a transfer of risk, is not considered to be a "policy of insurance." A payment made pursuant to such an arrangement is considered to be a "death benefit", as defined in subsection 248(1) of the Act. ... A payment made to an employee's estate is not considered to give rise to a taxable benefit. ...

Reasons: The concept of "surplus" is not defined in the Act; however, we have considered it on a few occasions and have adopted a broad view as to its meaning. ... We considered a similar issue respecting pension surplus once before in XXXXXXXXXX (endnote 1). ... The concept of "surplus" is not defined in the Act; however, we have considered it on a few occasions and have adopted a broad view of its meaning. ...

In addition, they had separate bedrooms, the wife managed the household and cared for the children, both spouses considered the husband to be a boarder in the home, the husband bought his own food, the spouses did not socialise together and the spouses rarely spoke to each other. Another factor that could be considered is whether or not support payments continue to be required under the terms of a court order or separation agreement. ... However, based on the information available, in our view you would be considered to be living separate and apart because of a breakdown of marriage at all relevant times. ...

Position: Yes Reasons: The amount is considered to be a designated benefit and the amount can be transferred to the spouse's RRIF; the amount so transferred may be taxed to either the deceased or the spouse and, if taxed to the spouse, would be eligible for a deduction if transferred to the spouse's RRIF. ... When you die you will be considered to have received immediately before death, an amount equal to the fair market value of all the property held in the RRIF at the time of death. ... If your wife is not a beneficiary of the RRIF, but rather of the estate, please refer to the enclosed form T1090 Death of a RRIF Annuitant- Designated Benefits which can be used by your wife and your legal representative to have the amount paid out of the estate to your wife's RRIF to be considered a "designated benefit" received by her directly. ...

Reasons FOR POSITION TAKEN: Since the payments are made "on the basis of a means, needs or income test", the payments made by the charitable organisation would be considered social assistance for purposes of paragraph 56(1)(u) of the Act. ... In our view, since the payments described above are made "on the basis of a means, needs or income test", the payments made by the charitable organisations would be considered social assistance for purposes of paragraph 56(1)(u) of the Act. Since the charitable organisation is considered to be a person who makes a payment described in paragraph 56(1)(u) of the Act, for purposes of subsection 233(1) of the Income Tax Regulations (the "Regulations"), it would be responsible for issuing any required T5007 forms. ...

2.If they were found to contain an interest element, would they be considered to be obligations "similar" to bonds, debentures, mortgages or notes of a government of a province as per 212(1)(b)(ii)(C)(II)? ... As noted in your correspondence, the Agency has previously stated that a non-resident payee is not subject to Part XIII tax in respect of periodic swap payments on the basis that such payments would not be considered to contain an element of interest provided that the payments by the counterparties are made contemporaneously. ... Also, we would not consider that the payment made pursuant to the risk mitigation provision in the swap agreement would be considered to be on account, in lieu of payment of, or in satisfaction of interest for the purpose of Part XIII of the Act. ...