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The factors used to determine the nature of a particular payment that may be considered a windfall or gift are discussed in paragraphs 1.2 and 1.3 of Income Tax Folio, S3-F9-C1, Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime (“Folio”) available on the CRA website. ... It is a question of fact whether the Contributions would be considered a gift. ... Consequently, in our view the Contributions would likely be considered a gift and would not have to be included in the recipients income. ...

You have asked us to clarify whether the virtual medical services are considered to be rendered in the jurisdiction where the health care professional or the patient is located at the time those services are rendered. ... It is a question of fact whether a virtual medical service is considered rendered at the location of the health care professional, the location of the patient, or both. ... Each of these requirements must be considered before a determination can be made. ...

More specifically you have asked if the Device is considered an electrotherapy device and whether it would be eligible for the METC if prescribed by a dentist or other medical practitioner. ... As the Device provides a therapeutic use of electricity and it has been designed for the treatment of obstructive sleep apnea, it is our view that the Device would be considered a qualifying electrotherapy device for the treatment of obstructive sleep apnea under subsection 5700(z.2) of the Regulations. Provided the remaining conditions included in paragraph 118.2(2)(m) of the Act are met (as noted above), the Device could be considered an eligible medical expense. ...

As an example, a U.S. limited liability limited partnership or U.S. limited liability company is considered to be a corporation for Canadian tax purposes but is considered as fiscally transparent or as a partnership by default under U.S. tax law. Distributions from these entities are not considered dividends for U.S. purposes and not shown on the financial statements of the foreign affiliate as dividends. ...

Moreover, in general terms, subsection 118.1(2.1) of the Act provides that for the purpose of determining an individual’s total charitable gifts, total cultural gifts and total ecological gifts, as the case may be, for a taxation year, no amount in respect of such gifts made in a particular taxation year will be considered to have been included in determining an individual's charitable donations tax credit until qualifying amounts in respect of such gifts made in preceding taxation years are considered to have been so included. In other words, under subsection 118.1(2.1) of the Act, gifts will be considered to have been claimed in determining an individual's charitable donations tax credits in the order in which they were made (i.e., on a “first-in, first-out” basis). ...

XXXXXXXXXX 2022-095144 Troy Neave February 21, 2024 Dear XXXXXXXXXX: Re: Replacement Property – Undivided Interest We are writing in response to your letter dated September 3, 2022, wherein you requested our views on whether, for purposes of the replacement property rules in subsections 13(4) and 44(1) of the Income Tax Act (the “Act”), a particular property could be considered a replacement property if the nature of ownership is an undivided interest. ... To be considered a replacement property, a particular property must meet the requirements outlined in subsections 13(4.1) or 44(5) of the Act. Very generally, a property is considered a replacement property for a former property if it is a “capital property” (footnote 2) of a taxpayer that was acquired to replace the former property and there is a causal relationship between its acquisition and the disposition of the former property. ...

The amount paid to acquire a portable oxygen concentrator is considered a medical expense for a patient for the purposes of the METC pursuant to paragraph 118.2(2)(i) ITA. 2) Based on the wording of the ITA and a contextual and purposive analysis. The amount paid to acquire a hyperbaric chamber by a patient is considered a medical expense for the purposes of the METC under paragraph 118.2(2)(k) ITA, as long as it is an equipment necessary to administer oxygen, it is acquired for use by the patient and it is prescribed by a medical practitioner authorized to practise as such. ... Additionally, the amount paid to acquire a hyperbaric chamber by a patient could be considered a medical expense under paragraph 118.2(2)(k) of the Act, as long as it meets the three following conditions: It is equipment necessary to administer oxygen; It is acquired for use by the patient; and It is prescribed by a medical practitioner authorized to practise as such. ...

Position: Not Considered Reasonable. Reasons: Subparagraph 6(1)(b)(x) of the Act. ... We also understand that if these allowances are considered unreasonable, the employer will not be entitled to the input tax credit under section 174 of the Excise Tax Act. ... It is our view that, since the allowance paid to the employee for the use of the employee's private vehicle is composed of a monthly rate and a cents per kilometre rate, the allowance would not be considered reasonable by virtue of subparagraph 6(1)(b)(x) of the Act, because it is not based solely on the number of kilometres for which the vehicle is used. ...

The CRA's position with respect to what is considered a genuine loan was originally set out in cancelled IT-260, Transfer of Property to a Minor. ... If, in addition, there is evidence that the borrower has given security for the loan, that interest on the loan has been paid, or that actual repayment has been made, the loan will be considered to be genuine. ... If the loan is not considered a genuine loan, subsection 75(2) of the Act will apply in the same manner as for any other transfer of property. ...

If there are employer contributions, a 401(k) plan will be considered an EBP. ... Where an employer is making contributions to a 401(k) plan, it will generally be considered a pension plan. However, where the employer is not making contributions, it will generally not be considered a pension plan. ...