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The contributions are considered part of labor cost, laid out to earn income as long as it is reasonable. 961391 XXXXXXXXXX J.A. ... In such circumstances, the amounts withheld from income by the employer and used to cover the premium obligations will not be considered as employer contributions but rather after-tax employee contributions. ... " As a result, the plan would not be considered an employee pay-all plan. 2.With respect to the treatment of the decrease in employee's salary please refer to our comments under item #2 of "Group Medical Plans. ...

Principal Issues: 1.Is the policyholder considered to have a disposition of the life insurance policy as a result of the policyholder ceasing to be a Canadian resident ("emigrates")? ... In your letter you ask whether the policyholder is considered to have a disposition of the life insurance policy as a result of the policyholder ceasing to be a Canadian resident ("emigrates"). ... However, this election is not possible on most interests in a life insurance policy since such property is not normally considered to be capital property. ...

So long as one of the selected libraries lists the eligible work that is considered to be a listing, and the number of listings found across all of the sampled libraries is multiplied by the base amount payable for each listing. ... In view of the description of the grants referred to in Category II above, we have reviewed the status of the awards and prizes considered in the context of our letter of December 17, 1990. ... Depending on the information provided in response to these questions, it is conceivable that the Arts Grants "A" and the Other Awards discussed above, may no longer be considered to be prescribed prizes. ...

The second question described by XXXXXXXXXX The issue is whether the Assets used to haul wood chips can be considered to be "used for the purpose of logging or manufacturing" so as to constitute "qualified property" for ITC purposes in the following situations: A. ... The meaning of the word "primarily" is discussed in paragraph 16 of Interpretation Bulletin IT- 331R; where equipment is used more than 50% of the time for logging it would be considered to be used primarily for logging. ... The question remaining to be considered is whether the use of the Assets could satisfy the "used... primarily for the purpose of...manufacturing or processing goods for sale or lease" for the purposes of subparagraph (c)((i) of the Definition. ...

Reasons FOR POSITION TAKEN: One of the conditions that must be met for a property to be considered a "qualified farm property" within the meaning of subsection 110.6(1) of the Act, is that the property be used in the course of carrying on the business of farming in Canada. ... Our Comments One of the conditions that must be met for a property to be considered a "qualified farm property" within the meaning of subsection 110.6(1) of the Act, is that the property be used in the course of carrying on the business of farming in Canada. ... Although a housing unit would not normally be considered to be used in a farming business, if it is not a distinct property but forms part of the real property used in the farming business, it may qualify for the subsection 73(3) rollover if the entire real property of which it is part was used principally in the business of farming. ...

It is always a question of fact as to whether a taxpayer will continue to maintain sufficient residential ties with Canada in order to be considered as remaining a factual resident of Canada. ... While it is our view that an individual would not be an officer or servant of Canada or a province by virtue of being an employee of the Commission, the individual may, for other reasons, nevertheless, be so considered. ... In conclusion, we are of the view that, based on the facts you have presented us with above, a taxpayer would be considered to remain a resident of Canada and subject to Canadian tax on his or her world income. ...

Position that legal expenses incurred to defend against an action to reduce spousal support is deductible is not contrary to the comments found in paragraphs 16 and 17 of IT-99R4 (which comments are reflected in above opinions) Reasons:-statutes such as Ontario's Family Law Act provide that every spouse has an obligation to provide support for the other spouse hence fees are deductible as the relate to the enforcement of a pre-existing right provided by law-actions commenced under the Divorce Act are considered to be costs incurred to establish a right to such payments (no pre-existing right to support) and therefore fees are considered on account of capital-such amounts would not be a source of income but simply a return of payments previously made-whether an amount of support is initially quantified through an action commenced under a provincial family statute such as Ontario's Family Law Act or established by the Court through an action commenced under the Divorce Act is irrelevant when determining the deductibility of future legal fees incurred in a subsequent court challenge to the quantum of support 952523 XXXXXXXXXX Sandra Short Attention: XXXXXXXXXX November 30, 1995 Dear Sirs: Re: Legal fees incurred in respect of spousal support This is in reply to your letters of July 27 and September 22, 1995. ... It is our opinion that legal costs incurred with respect to a support action- whether interim or permanent- commenced under the Divorce Act, would be considered to be costs incurred to establish the right to such payments and not the enforcement of a pre-existing right such as exists under relevant family law. Such legal costs incurred to establish a right to support under the Divorce Act are considered on account of capital. ...

A corporation's business for this purpose will be considered to have been carried on primarily in Canada if at least 50% of the full-time employees of the corporation and all corporations related to it and employed in respect of the business are employed in Canada, or at least 50% of the salaries or wages paid to employees of the corporation and all corporations related to it and employed in respect of the business are reasonably attributable to services provided in Canada. ... In accordance with subsection 4900(8) of the Regulations a share of an eligible corporation will also become a non-qualified investment if the RRSP annuitant provides services to or for the issuer of the share or a person related to the issuer and a dividend is received by the RRSP which can reasonably be considered to be payment for the services provided. ... Due to the detail and complexity of these rules the foregoing comments are meant only to provide a general overview of the relevant provisions and under no circumstances should they be considered either comprehensive or all inclusive and do not bind the Department. ...

(our emphasis added) At issue is: (a) whether the Fee constitutes a payment made to A Co by B Co in the course of carrying on a business or earning income from property in respect of borrowed money as consideration for a reduction in the rate of interest payable by B Co on the debt obligation, and (b) if the Fee is a payment described in (a) above, whether the Fee can, reasonably be considered to relate to an amount that... would have been paid or payable by the taxpayer as interest on the debt obligation for a taxation year of the taxpayer ending after that time. ... First, a payment is generally deductible only to the extent that it may reasonably be considered to relate to an amount that would otherwise have been payable as interest by the taxpayer. ... Since there is not an amount that would otherwise have been payable as interest by B Co the Fee cannot, reasonably be considered to relate to an amount that... would have been paid or payable by the taxpayer as interest on the debt obligation for a taxation year of the taxpayer ending after that time for purposes of the mid-amble between paragraph 18(9.1)(d) and (e) of the Act. ...

The amount paid to the Trust was the pro-rata portion of the pension plan contribution holiday amount that was considered to relate to the Retirees pensions. 6. ... No part of the benefits provided by the Trust would be considered to be the carrying on of a life insurance business. ... Where the Trust is considered to be a "retirement compensation arrangement", the Trust will compute its taxes payable under subsection 207.7(1) of the Act. ...