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It would appear from our reading of the translation of the German decision that the German court considered that the vendor/licensor, not the purchaser/licensee, is the person upon whom the German VAT is imposed and who is liable therefore and that accordingly the VAT is included in the vendor's/licensor's income for income tax purposes as described in the first paragraph on page 2 of our Memorandum to you dated May 7, 1991, namely: "If, on the other hand, the VAT is a tax imposed on the vendor/licensor as the person primarily liable therefore (as opposed to merely being liable in its capacity as a collecting agent with an absolute obligation to collect), as appears to be indicated in the letter to you from the German competent authority dated August 17, 1990, we would be inclined to conclude that the entire amount payable to or for the account of the vendor/licensor or for which the vendor/licensor obtained credit against its VAT liability by virtue of action taken by the purchaser/licensee would be "consideration for the use of, or the right to use, any copyright, (etc.)... ... " As indicated by our Memorandum to you in respect of this matter dated May 7, 1991, while we considered it likely that the German VAT, like the Canadian GST, is a tax on the purchaser/licensee rather than on the vendor/licensor, we were unable to determine the German law in this regard. ...

The proposed amendment provides that where a company is incorporated in a country other than Canada, at least 90% of its activities consist of international shipping, and at least 90T of its revenues are derived from those activities, it will be considered, for Canadian tax purposes, not to be a resident of Canada. ... Such determination will involve the consideration of corporate and commercial arrangements entered into by the taxpayer, some of which may not have been considered by Revenue Canada. ...

However, a loan would not be subject to these requirements if it were considered to be unconditionally repayable. ... Whether or not a loan can be considered to be unconditionally repayable depends on a finding of fact and would require an examination of the particular loan agreement and surrounding circumstances. ...

The deemed dividend resulting from the redemption of the shares of the private Canadian Corporation is considered to be a taxable dividend under subsection 89(1)(j) of the Act and would be included in computing income of the trust. ... As the deemed dividends are the result of a transaction subsequent to the death of the spouse they cannot be considered to be paid or payable to the spouse in the year. ...

The Act also does not contain a specific definition of tuition fees; however the Department has set out in paragraph 26 of Interpretation Bulletin IT-516 items which are considered eligible tuition fees. It is our position that the GST would not be eligible for the purpose of computing the tuition tax credit because the GST would be a tax on fees rather than an additional tuition fee and the GST is not similar to any of those types of times which are considered eligible. ...

In our opinion the purpose of paragraph 55(5)(d) is to ensure that taxable surplus of a foreign affiliate that has not been subject to tax in the foreign jurisdiction will not be considered income earned or realized. ... Paragraphs 55(5)(b), (c) and (d) do not provide that the amount computed under those paragraphs represents an amount of income earned or realized that could reasonably be considered to attribute to the capital gain. ...

Provided that subparagraph 40(2)(g)(ii) does not apply and the conditions of paragraph 39(1)(c) are met this loss would be considered a business investment loss. Otherwise the loss would be considered to be a capital loss. Paragraph 3 of IT-484R discusses the relevant conditions that must be met in order that a particular capital loss may qualify as a business investment loss. ...

As indicated in paragraph 18 of IT-119R3, loans made or indebtedness arising in respect of repairs, alterations, renovations, or additions made to a dwelling are not considered to qualify for the exception under subparagraph 15(2)(a)(ii) of the Act. However, the demolition of an existing dwelling and the erection of a new one cannot be considered to be an addition to a dwelling, since the former dwelling no longer exists. ...

XXX As support for this position, you have referred to paragraph 17 of Information Circular 80-3R2 entitled "Child Tax Credit" which indicates that a spouse is still considered to have resided with the claimant at December 31 if separated only for business, employment, medical or educational reasons. ... In the situation where an individual's husband is XXX overseas, we believe that he should be considered to reside with his spouse unless he can establish otherwise. ...

Where an employer acquires an interest in a life insurance policy that may reasonably be considered 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 RCA rules by virtue of subsection 207.6(2) of the Act. ... All the facts of a particular situation would have to be considered to determine whether the RCA rules apply or not. ...