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In paragraph 31 of IT-64R2, the statement was made that paragraph 251(5)(b) will not be considered to apply to a right of first refusal or a "shotgun arrangement". ... In IT-419, the Department states that paragraph 251(5)(b) will not be considered to apply to a right of first refusal. ...

Where a partnership that has as a partner a second partnership ceases to exist, you have requested our views on whether the second partnership would be considered to be "one person" as referred to in subsection 98(5). ... Thus the facts and circumstances of an actual case involving subsection 98(5) in such a situation would be carefully considered before deciding on the appropriate tax treatment. ...

Specifically, you ask whether providing a horse with the necessary training and exercising program in order that it may compete as a show jumper would be considered farming. ... Hence, the activity of "raising, training and exercising a horse" in order that it may compete as a show jumper could be considered as "farming". ...

Our Comments Paragraph 1 of Interpretation Bulletin IT-213R entitled "Prizes from Lottery Schemes, Pool System Betting and Giveaway Contests" states, in part, that: "The amount or value of a prize received by a taxpayer from a lottery scheme is not taxable as either a capital gain or income unless. due to the circumstance applying to the lottery scheme. the prize can be considered to be income from... property... ... Additionally, as the bonus awarded in the lottery can be considered as an inducement, the provisions of paragraph 12(1)(x) would appear to include such amounts in income. ...

Consequently, in our view, generally accepted principles of valuation would apply, and the question of applying a minority discount when valuing the 115 shareholding referred to above must be considered in arriving at the fair market value of such holding. Numerous court cases have considered valuation problems in relation to minority shareholdings, and a brief survey of such cases indicates the tendency of the courts to apply a minority discount. ...

In the case of a building owned by a corporation, 60% of which is leased to third parties, it would appear that the total value of the building could not be considered an eligible element. ... It should be noted that even before the coming into force of the above-mentioned amendments, generally speaking, the Department considered that an asset was used in a business if its primary or principal use (i.e. more than 50% of its use) was in respect of that business (IT-488R, paragraph 5). ...

A loan is considered to be a home relocation loan if, among other requirements, it is received by an employee in the circumstances where he has commenced employment at a location in Canada and by reason thereof, has moved from a residence in Canada to another residence in Canada which is 40 kilometres closer to the location of the new employment than was the previous residence. In order to be considered a home relocation loan, it is not necessary that the employment prior to and subsequent to the move be with the same employer. ...

The Department's view with respect to some of the factors to be considered in this regard can be found in Interpretation Bulletin IT-479R, entitled "Transactions in Securities" and Interpretation Bulletin IT-114, entitled "Discounts, Premiums and Bonuses on Debt Obligations". Where the whole course of a taxpayer's conduct indicates that a) in security transactions the taxpayer is disposing of securities in a way capable of producting gains and with that object in view, and b) the transactions are of the same kind and carried on in the same way as those of a trader or dealer in securities, the proceeds of sale will normally be considered to be income from a business and, therefore, on income account, We trust the foregoing is of assistance. ...

As a consequence thereof, a payment received by the employee in respect of any such departure would not be considered a retiring allowance. The Department is of the view that where, in an arm's length situation, a long term employee has retired without any assurance of being rehired at that time, and has received a payment from the employer in recognition of long service, the payment would normally be considered to be a retiring allowance regardless of the fact that the employee is rehired at a later date when circumstances have changed. ...

In paragraph 31 of IT-64R2, the statement was made that paragraph 251(5)(b) of the Act will not be considered to apply to a right of first refusal or a "shotgun arrangement". ... In IT-419, the Department states that paragraph 251(5)(b) of the Act will not be considered to apply to a right of first refusal. ...