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You have requested our opinion as to whether Company X's interest in the office building is considered to be rental property as defined in subsection 1100(14) of the Regulations and as such, whether its claim for capital cost allowance will be computed pursuant to subsection 1100(11) of the Regulations. ... However, based on the above information it is our opinion that the office building would not be considered a rental property as defined in subsection 1100(14) of the Regulations for the purpose of determining Company X's taxable income.  The reasons for this opinion are as follows: 1)     Allocation of floor space is generally considered a reasonable basis for determining the principal use of a building. 2)     A total of 54% of the building is occupied by the owners of the building and thus it would not appear to be used principally for the purpose of gaining or producing gross revenue that is rent. 3)     Company X occupies 21% of the building.  ...

Accordingly, pensions under the Old Age Security Act, benefits under the Canada or Quebec Pension Plans, alimony and any other amounts which are exempt from tax by virtue of the Canada-U.S.Income Tax Convention (the "Convention") will be considered to fall within the expression "...liable to pay tax under Part XIII of the Act... ... It is our view that any amounts which are exempt from tax in Canada, by virtue of a tax agreement or convention would not be considered as being "...included in the individual's taxable income... ... Therefore, in A above, any amounts which are exempt by virtue of a tax agreement or convention will not be considered as having been included in the individual's taxable income for purposes of the fifty percent test in paragraph 217(c) of the Act. ...

In these cases, the consideration given by the employee is considered to be the employee's covenants as found in the collective agreement or contract of service. Benefits received under a PHSP are not taxable in the hands of the employee and the particular expense reimbursed is not considered to be a medical expense of the employee by virtue of paragraph 118.2(3)(b) of the Act. However, employee contributions to a PHSP are considered to be eligible medical expenses under paragraph 118.2(2)(q) of the Act for the purposes of calculating the medical expense tax credit. ...

"  You cite three cases which you believe mitigate against our position and you have asked specifically if a taxpayer acquiring the exclusive rights to market a software product in Canada is considered not to have acquired the software for use because of the restriction to Canada as a geographic region. In our view, the three cases cited do not refute our views on when the sale of computer software is considered to occur nor do they refute our views that a `license to use computer software does not include a contractual right to buy and resell, or to otherwise market computer software'.  ... The nature, purpose and anticipated life of this computer software should be considered in determining whether the acquisition costs should be written off in the year the cost was incurred or whether the costs should be capitalized and included in Class 12.  ...

Comments and Opinion Generally, it is our opinion that the employees in the partnership business will be considered to be employees of the corporate. partners for purposes of paragraph 125(6)(h) of the Act. Therefore, in the case of the above partnership which employs throughout the year more than five full-time employees (who presumably are not specified shareholders of a corporate partner or persons related thereto), each corporate partner could not be considered to be carrying on a specified investment business. ... We have also considered the merits of your argument that it is essentially the partnership which carries on the business and not the partners based on a Supreme Court of Canada decision as it related to the bankruptcy legislation. ...

Albert (613) 957-2098 FEB 23 1989 Dear Sirs: Re: Scientific Research and Experimental Development ("SR & ED") Non-Government Assistance and Contract Payments We are responding to your November 30, 1988 request for an interpretation as to whether service fees payable by a foreign affiliate to a Canadian taxpayer would be considered as non-government assistance or a contract payment which would reduce the qualified expenditures made for purposes of calculating the investment tax credit ("I.T.C. ... Non-Government Assistance Whether an amount would be considered as non-government assistance would depend on whether the amount must be included in income by virtue of paragraph 12(1)(x) of the Act if that paragraph were read without reference to subparagraphs (vi) and (vii) thereof. ... They import such meanings as "in relation to", "with references to" or "in connection with" The phrase "in respect of" is probably the widest of any expression intended to convey some connection between two related subject matters". the service fees paid by NRCO would be considered to be "in respect of" the SR & ED expenditures incurred by Canco. ...

The student who is no longer ordinarily resident of a foreign country by reason of his studies in Canada will be considered to have taken up residence in Canada on the date of his arrival in Canada and to have given up such status on the date of his departure from Canada. ... Where the taxpayer is considered to be resident in Canada for only part of a taxation year, the personal exemptions and standard deduction are to be apportioned on the basis of the number of days of the year that the taxpayer was so considered to have been resident in Canada. ...

For U.S. income tax purposes, a consent dividend is considered to be a distribution to a shareholder and a simultaneous contribution of capital back to the dividend-paying company by the shareholder-recipient (see section 565(c) of the Code) 4. ... XXXX that the financial statements of a U.S. company prepared in accordance with generally accepted accounting principles would not record a consent dividend as a dividend paid or received by the respective payor and payee because a consent dividend is not considered to be income distributed or received. ... XXXX Other Factors Considered 15. XXXX 16. XXXX 17. XXXX 18. XXXX 19. ...

Paragraph 113(1)(a) provides a deduction in computing income in respect of dividends received from a foreign affiliate of a corporation resident in Canada to the extent that the dividends are considered to have been paid out of the exempt surplus of the foreign affiliate. ... This is based on the view that such a dividend would be considered a dividend for Canadian tax purposes generally, and that the dividend is only considered to be interest for the purposes of the specific provisions set out in subsection 258(3). ...

In order to decide whether a particular international development assistance program falls within the ambit of Part XXXIV of the Regulations and hence is a "prescribed international development assistance program of the Government of Canada", it is necessary to make the following two determinations: 1) Whether the program is an international development assistance program that is considered to be a "CIDA program" (e.g., it appears that certain programs receive grant assistance from CIDA for international development but may not be considered to be CIDA programs); and 2) Whether the program is financed with funds (other than loan assistance funds) provided under External Affairs Vote 30a, Appropriation Act No. 3, 1977-78, or another vote providing such financing. ... We would also appreciate receiving copies of the relevant votes as well as a copy of CIDA's internal guidelines that may be used in determining whether international development assistance programs that receive funding from CIDA are to be considered as CIDA programs. ...