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Will the general partners be considered limited partners as defined in paragraph 96(2.4)(b) of the Act by virtue of the limited recourse financing being considered a benefit to the partners under paragraph 96(2.2)(d) of the Act? ... Consequently, a general partner of such a partnership will not be considered to be a limited partner by virtue of paragraph 96(2.4)(b) of the Act. ...

7 March 1991 Income Tax Severed Letter- Definition of \"Small Business Corporation\" Unedited CRA Tags 125(7)(b), 248(1) Dear Sirs: Re: The Definition of "Small Business Corporation" under Subsection 248(1) of the Income Tax Act We are writing in response to your letter of January 24, 1991 wherein you requested our view as to whether Company A would be considered a small business corporation within the meaning assigned under subsection 248(1) of the Income Tax Act (the "Act") in the following hypothetical situation outlined in your letter of January 24, 1991. ... In connection with your request for our view as to whether, in the hypothetical situation outlined above, Company A would be a small business corporation, you specifically requested us to confirm (i) that in determining whether an interest in a partnership owned by a corporation is considered an asset used in an active business carried on by that corporation, it is Revenue Canada's policy to "look through" a partnership interest and to consider the partner's proportionate share of the partnership assets; and (ii) that the real property owned by Company A is used in its active business carried on in Canada. ... In this regard it is our view that the partners of a partnership are considered to carry on the business of the partnership. ...

XXX 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, XXX 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 transactions or events was to cause the shareholders to be related or to not deal at arm's length with each other so that subsection 55(2) of the Act would not be applicable to the XXX 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 [Information Circular 70- 6R2]. ...

Can an allowance that is considered reasonable by the employer be later determined to be less than reasonable by the employee and be included in income? ... As described in Interpretation Bulletin IT-522 “Vehicle and Other Travelling Expenses—Employees”, an allowance is considered to be a payment that an employee receives, however computed, without having to account for its use. ... Payments made to an employee, upon presentation of actual receipts, as a reimbursement of business expenses incurred for which the employee is accountable, would not be considered an allowance to which our previous comments apply. ...

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. ...

However, we would like to offer the following general comments: In order for payments for any services provided in connection with the use of computer software not be considered as part of a software license agreement, we feel that the following two conditions must be satisfied: 1. ... If the payments for services are not considered to be part of the computer software license fee, they could still be subject to a 15% withholding tax under subsection 105(1) of the Income Tax Regulations (the "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 1980 Canada-U.S. ...

(c) Would a truck described in (a) above that is carrying fire-fighting equipment be considered as being "used primarily for the transportation of goods or equipment in the course of a business" for purposes of subparagraph (b)(ii) of the definition of "automobile" in subsection 248(1) of the Act? ... In addition tow hat would obviously be considered personal use of a motor vehicle supplied by an employer, the Department considers personal use to include travel between the employee's place of work and home, even though the employee may have to return to work after regular duty hours. ... These particular trips are not considered to be of a personal nature. ...

Our comments are as follows: (a) We agree that for the purposes of section 125.1 of the Act the screening of soil, gravel or crushed stone in order to make a product more marketable would be considered to be a processing activity. ... Such equipment would not be considered to qualify for the ITC. Our opinion is consistent with the definition of the term "qualified activities" under section 52202 of the Income Tax Regulations which indicates that the activities of transporting, placing or supplying of raw materials do not qualify. (b) Equipment that is used primarily in construction would not be considered to be used in M & P. ...

You will note that the conclusion drawn in that instance was that subsection 70(1) of the Income Tax Act (the "Act") was considered to apply to the subsequent payment and the amount was technically required to be reported on the final return of the deceased employee. ... We note that the wording in subsection 70(1) does not contain the requirement that for the provision to apply the amounts must be considered accrued at the time of the employee's death. ... The equalization payment is not considered to be a payment in recognition of his service in employment paid as a consequence of the cessation of employment caused by the employee's death but rather as salary or wages earned in the course of employment. ...

You have asked whether the mobile phone monitoring activity during the employee's travel between home and work would be regarded as part of the individual's duties of employment with the result that the distance driven while engaged in this monitoring activity would be considered to be employment-related kilometres driven for the purposes of the standby charge calculation. Our Comments The Department's position on what is considered to be personal use of a motor vehicle supplied by an employer is set out in Interpretation Bulletin IT-63R3. As stated in paragraph 5 of this bulletin, in addition to what would obviously be considered personal use of a motor vehicle supplied by an employer, the Department considers personal use to include travel between an employee's place of work and home. ...