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This would be so, where the limited recourse amount can reasonably be considered to relate to the particular expenditure. 2.Since an indebtedness of a partnership can be a "limited recourse amount" either immediately or at any time in the future and either absolutely or contingently, it is a question of fact, to be determined at the particular time, whether an indebtedness would or would not be limited recourse amount. Whether members of a partnership would be considered to be privy to the financing transactions of the partnership at any time is not relevant in determining a limited partner's at-risk amount. ...

Reasons: Grandfather treatment considered on a case by case basis. It is not of general application to any partnership interest which was acquired prior to the July 28, 1995 announcement of the change in position in Income Tax Technical News No. 5. ... As you know, since that publication, the Department has considered grandfather treatment, whereby the pre-Technical News position would prevail, in specific cases based on the particular facts involved. ...

Paragraph 9 indicates that if an employee acquires shares pursuant to a stock option agreement, the provisions of which prohibit transfer of the shares for a period of time, the employee is considered to have "acquired" the shares within the meaning of section 7. However, the value of the shares is considered to be the fair market value of identical shares at the time of acquisition that have no trading restriction less an appropriate discount in respect of the restriction. ...

In response to Question #51 of the 1986 Canadian Tax Foundation Revenue Canada, Taxation Round Table, Revenue Canada stated that, in the situation where a corporation's only asset was an interest in a partnership that carried on an active business in Canada, the corporation would be considered to be a small business corporation if it was a Canadian-controlled private corporation and all or substantially all of the assets of the partnership were used in an active business carried on by the partnership in Canada. ... We confirm that it is still Revenue Canada's view that a Canadian-controlled private corporation whose only asset is an interest in a partnership, where all or substantially all of the partnership's assets are used to carry on an active business in Canada, would be considered to be a small business corporation. ...

Reasons: The deemed gain is considered to arise in Canada. 963670 XXXXXXXXXX (613) 957-8953 Attention: XXXXXXXXXX December 3, 1996 Dear Sirs: Re: Article XXII of the Canada-U.S. ... Income resulting from the application of subsection 107(5) of the Act is considered to arise in Canada. ...

8 April 1993 External T.I. 9306335 F- Acquisition of Property in Contemplation of Butterfly Unedited CRA Tags 55(3)(b) XXXXXXXXXX Attention:  XXXXXXXXXX Dear Sirs: RE:  Acquisition of Property Paragraph 55(3)(b) of the Income Tax Act (the "Act") This is in reply to your letter of March 1, 1993 wherein you requested confirmation that, in the fact situation outlined therein, the acquisition of certain property by a corporation prior to it becoming the "particular corporation" in a proposed reorganization of the type described in paragraph 55(3)(b) of the Act (a "Butterfly Reorganization"), would not be considered to have been made "in contemplation" of the transfer of property in the course of such Butterfly Reorganization. ... However, in our opinion, if such an acquisition of property (the "Acquisition") arose where the facts of the particular situation are such that: i)     the Acquisition would be in the ordinary course of the "particular corporation's" business and would have occurred whether or not the Butterfly Reorganization is subsequently undertaken; ii)     neither the structure or timing of the Acquisition would be affected by considerations relating to the Butterfly Reorganization; and iii)     the Acquisition would not be conditional on completion of the Butterfly Reorganization;      the Acquisition would not normally be considered to have occurred in contemplation of the Butterfly Reorganization. ...

Specifically, your request concerns whether a corporation which owns a nominal number of preferred shares of a joint exploration corporation ("JEC"), within the meaning of this term at paragraph 66(15)(g) of the Act, would be considered to be a "shareholder" for the purposes of subparagraph 66(15)(i)(i) of the definition of shareholder corporation. ... Our Comments: It is our view that a corporation which owns a nominal number of preferred shares of a JEC would be considered as a "shareholder" for purposes of subparagraph 66(15)(i)(i) of the Act. ...

19 May 1993 External T.I. 9234795 F- Non-Capital Loss Application Unedited CRA Tags 111(5) XXXXXXXXXX Attention:  XXXXXXXXXX Dear Sirs: RE:  Technical Interpretation, Income Tax Act111(5) This is in reply to your letter of November 16, 1992, wherein you requested a technical interpretation regarding the question of whether or not the production of oil or gas from properties located in Saskatchewan will be considered to be the same business as the production of oil or gas from properties in Alberta. ... We are of the view that for the purpose of 111(5)(a) of the Act, the operation of oil and gas wells in Saskatchewan before the change of control is the same business as the post change of control operation of the wells located in Saskatchewan and newly acquired additional wells located in Alberta would be considered as another business substantially all of the income of which was derived from the sale of similar properties for the purpose of subparagraph 111(5)(a)(ii). ...

In our view, the substitution of the phantom stock plan units for the stock options would be considered a disposition of property and the value of the units would be included in the employees' income to the extent that any amount was not included in the income in the previous years. It is our view that the amount included in the employees' income would be considered as an amount paid by the employees to acquire the right to acquire the shares for the purposes of subsection 7(1) and subparagraph 110(1)(d)(iii) of the Act. ...

Where an employer acquires an interest in a life insurance policy that may reasonably be considered to be acquired to fund benefits to be received by an employee upon his retirement or upon substantial change in services rendered, the arrangement would be subject to the retirement compensation arrangement ("RCA") rules by virtue of subsection 207.6(2) of the Act if it is not otherwise a RCA and is not otherwise excluded from the definition of RCA by any of paragraphs (a) to (l) and (n) thereof. All the facts of a particular situation would have to be considered to determine whether the RCA rules apply or not. ...