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The income tax treatment of the award depends on whether the amount is considered, for income tax purposes as a research grant or as a scholarship or bursary.  We have reviewed the information brochures you submitted entitled "CIDA Awards for Canadians 1990-1991- Long Term Awards" and "CIDA Professional Awards- networking for the Future" and concluded that, based on the general information provided therein, these awards would not normally be in the nature of research grants as explained in paragraph 18 on the attached Interpretation Bulletin IT-75R2 "Scholarships, Fellowships, Bursaries, Prizes, and Research Grants" and Special Release thereto, an award will only be considered to be a research grant where the terms of the specific grant or award establish that the primary purpose of the award is to carry out research rather than to further the recipient's training or education.  ... Where the recipient of the award sets up a temporary residence in the host country to carry out the work specified in the award, the amount expended for meals and lodging in that place would typically not be considered travelling expenses and would thus not be deductible as a research expense. ...

If a telephone conversation of an employment nature does constitute an activity that is 'in connection with or in the course of the office or employment', then, can the travel between a personal residence and the usual work location be considered not to be of a personal nature if such telephone conversations are being conducted during that period of travel? ... Paragraph 5 of IT-63R3 outlines the Department's position on what type of travel is considered personal.  Distance travelled which is not personal in nature (in relation to the employer's business) is considered to be in connection with or in the course of employment; other distance travelled is not. 2&3.      ...

The only remaining criteria at issue is whether the student can be considered to be in full-time attendance at the university under the circumstances described. ... M.N.R. 78 DTC 1885]  The latter cases led to be inclusion of comments in paragraphs 10 and 11 of IT-516 (formerly IT-82R3) that a student in post-graduate studies will be considered to be in full-time attendance if the educational institution being attended regards her/him as such and that a student participating in post-graduate studies on a regular basis would be considered in full-time attendance even though the requirement for attendance in the classroom is minimal. ...

Our Comments It is our general view that, for the purpose of subsection 249(4) of the Act, control of Opco will not be considered to have been acquired by a person or group of persons as a result of the Transaction.  ... X will be considered to control Opco because between himself, X Co. and A Co. he has voting control of Opco.  ... X controls Opco before the Transaction and continues to control Opco after the Transaction, control of Opco will not be considered to have been acquired by any person or group of persons as a result of the Transaction. ...

It is our general position that the following two conditions must be met in order for payments for maintenance service fees, provided in connection with the use of computer software, not to be considered part of the software licence fee which is subject to Part XIII tax: 1.      ... If the payment for services are not considered to be part of the computer software license fee, they could still be subject to a 152 withholding tax under subsection 105(1) of the Income Tax Regulations if the services are rendered in Canada by the non.resident person.  ... If the non-resident payee is considered to be a resident of the U.S. for purposes of the Convention, such payee will be exempt under Article VII of the Convention, from Canadian tax on the business profits earned from the provisions of the services unless the payee carries on business in Canada through a permanent establishment in Canada and the profits are attributable to such permanent establishment. ...

You also requested our opinion on whether architects who perform contract administration and whether architects who design can be considered to be performing activities consistent with section 122.3(1)(b)(i)(B) of the Income Tax Act. ... Your request for our opinion on whether architects who perform certain activities can be considered to be performing activities consistent with section 122.3(1)(b)(i)(B) of the Income Tax Act indicates that you may have some misconceptions concerning the application of the section.  ... We also wish to bring to your attention that the opinions expressed herein are not advance income tax rulings and, in accordance with paragraph 24 of Information Circular 70-6R, are not considered binding on the Department. ...

It is your view that capital gain distributions made by a U.S. based mutual fund trust, regardless of whether the trust is considered to be a corporation or a partnership for U.S. tax purposes, should be treated by the Canadian recipient as income from property by virtue of paragraph 108(5)(A) of the Income Tax Act (the "Act").  ... We agree with your view that capital gain distributions made by a U.S. resident mutual fund trust should be included in computing the income of the Canadian beneficiary as income from property pursuant to paragraph 108(5)(a) of the Act provided that the U.S. mutual fund trust is considered to be a trust for Canadian tax purposes, notwithstanding that it may be considered to be a corporation or a partnership for U.S. tax beneficiary would be included in computing the income of the beneficiary under paragraph 104(13)(c) of the Act. ...

The procedures for requesting an advance tax ruling are outlined in Information Circular 70-6R2 dated September 28, 1990 issued by Revenue Canada, Taxation ("IC 70-6R2"). 24(1) It is the Department's position that persons living in a "common-law" relationship are not considered to be married for the purposes of the Act.  ... If the transactions and an ultimate sale to an arm's length person form part of the same series, 24(1) In our view the provisions of subsection 55(4) of the Act may apply in the above situation if it may reasonably be considered that the principal purpose of one or more transaction or events was to cause the shareholders to be related or to not deal at arms length with each other so that subsection 55(2) of the Act would not be applicable to the 24(1) The comments expressed are not advance income tax rulings and are not considered binding on the Department, in respect of any taxpayer, in accordance with paragraph 21 of IC 70-6R2. ...

The actual lease payments are considered to be blended payments of interest and principal. ... As you note, the Investment Tax Credit will be considered in the (b) amount since it reduces the amount of capital cost on which the capital cost allowance may be claimed. ... None of these provisions are considered in calculating the (a) amount but, of course, will be factors in determining the (b) amount. ...

Therefore such plans must meet the requirements of Regulation 6801 or they may be considered a SDA resulting in the employee being taxed on the deferred amounts in the year earned instead of the year received. ... The deferred amounts are considered to be rights or things pursuant to subsection 70(2) of the Act and can be reported an a separate return. ... The interest earned on the deferred salary is also considered wages but interest on interest is not wages and would not be part of earned income. ...