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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. ...

Tax Shelter In order to determine whether a partnership is to be considered a tax shelter, one must have regard to "statements or representations made or proposed to be made" concerning the deductibility of certain amounts. ... Before an interest in a partnership would be considered a tax shelter, there must be, inter alia, statements, representations or advertisements made or proposed to made promoting the income tax deductions available, in order to recruit investors. ... " However, where a partnership interest does not meet the definition of a tax shelter, an accountant or lawyer who provides advice on the creation of such a partnership will not be considered a promoter. ...

Spice (613) 957-8953 Attention: XXX March 19, 1992 Dear Sirs: Re: Definition of Earned Income Paragraph 146(1)(c) of the Income Tax Act This is in reply to your letter of November 7, 1991, in which you ask whether a lump-sum distribution from a retirement compensation arrangement ("RCA") which is included in income under paragraph 56(1)(x) of the Income Tax Act (the "Act") could be considered "earned income" as defined in the above-noted provision. As you point out, an RCA distribution could be considered to be earned income if it is income from an office or employment (clause 146(1)(c)(i)(A) of the Act). ... The amounts described under subparagraphs (i) and (ii) of that paragraph explicitly exclude RCA payments included in income under paragraph 56(1)(x); it would not be necessary to exclude such payments if they could not be considered to be either of the two types of amounts described. ...

" As a consequence, each member of a partnership is considered to be, in effect, carrying on business as a co-owner of the business and not an employee of the business. ... Life Insurance On the assumption that the beneficiaries under the life insurance policy would be the heirs of the individual partners and the policy did not in any way compensate the partnership for lost income, the life insurance premium costs would be considered to be personal or living expenses of the individual partners under paragraph 18(1)(h) of the Act and would not be deductible in computing income at the partnership level or by the partners individually. ... Health and Dental Coverage Any such premiums paid on behalf of a particular partner by the partnership would not be deductible in computing partnership income because they would be considered to be personal or living expenses of the partner. ...

Spice (613) 957-8953 Attention: XXX April 23, 1992 Dear Sirs: RE: Application of Retirement Compensation Arrangement ('RCA") Rules to Exceptions From Salary Deferral Arrangements ("SDA's") We are writing in reply to your letter of October 29, 1991, in which you ask whether a plan or arrangement which was excepted from the definition of an SDA in subsection 248(1) of the Income Tax Act (the "Act") could be considered to be an RCA within the subsection 248(1) definition. It is our view that a plan or arrangement otherwise considered an SDA but for its explicit exclusion from the SDA definition might still be found to be an RCA. ... Therefore, a trust which is funded by bonus payments calculated by reference to actual dividend distributions might be considered a retirement compensation arrangement if the funding is "in connection with benefits that are to be or may be received or enjoyed after" retirement or loss of employment. ...

Leung (613) 957-2115 Attention: 19(1) August 21, 1992 Dear Sirs: Re: 24(1) Advance Income Tax Ruling Request We are writing in response to your letter of March 22, 1992 wherein you requested an advance income tax ruling confirming that clause 6205(1)(a)(i)(B) of the Income Tax Regulations (the "ITR") would apply such that the Class A Special shares of 24(1) would not be considered to be prescribed shares for the purposes of subsection 110.6(8) of the Income Tax Act (the "Act") and whether the Class A and Class B Special shares of 24(1) would otherwise be considered to be prescribed shares for such purposes. ... Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information In view of the fact that 24(1) may purchase the Class A Special shares as described in 3 above, it is our view that the Class A Special shares of 24(1) would not be considered to be prescribed shares for the purposes of subsection 110.6(8) of the Act. ...

We have said, for example, that (a) two companies would be considered to be affiliated where one effectively controls the other by virtue of exercisable stock options, or by virtue of a combination of exercisable stock options and economic influence, (b) an entity that is one-third owned by each of 3 different entities would be considered to be affiliated with each of those entities, and (c) two companies would be considered to be affiliated if they have an interdependent working relationship which among other things permits or encourages the exchange of employment opportunities. ...

Also, if the partnership leases assets from a corporation connected or related to a corporate partner for use in its active business, are these assets considered to be used in an active business of the corporate partner? ... Accordingly, assets leased by the partnership for use in its active business will be considered to be used in an active business carried on by the corporate partner. If these assets are owned by a corporation related to the corporate partner they will be considered to be "assets used principally in an active business carried on primarily in Canada by the corporation or by a corporation related to it', as described in subparagraph (c)(i) of the definition of QSBCS in subsection 110.6(1) of the Act. ...

We have considered whether the payment is exempt from Part XIII withholding tax by virtue of subparagraph 212(1)(d)(vi) of the Act. ... S. parent and made available to a Canadian subsidiary was copied and distributed to the public by the Canadian subsidiary, the payments were considered to have been for the reproduction of a literary work. There is one further issue to be considered with respect to any copyright fee paid by a taxpayer, especially where the payor and the payee are not dealing at arm's length, as appears to be the case with XXX and XXX. ...