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16 July 2008 External T.I. 2008-0272121E5- Ownership of Property Unedited CRA Tags 54 Principal Issues: Whether an individual would be considered to be the owner of his brother's house. ... The individual would not be considered to have beneficial ownership. XXXXXXXXXX 2008-027212 Charles Rafuse 613-247-9237 July 16, 2008 Dear XXXXXXXXXX: Re: Ownership of Property This is in reply to your fax of March 26, 2008 and our telephone conversation (Rafuse/XXXXXXXXXX) of June 4, 2008, concerning the ownership of property under the Income Tax Act (the "Act"). ...

The CRA's Interpretation Bulletin IT-339R2, Meaning of Private Health Services Plan, which is on the CRA Web site at www.cra.gc.ca/E/pub/tp/it339r2/README.html, sets out the requirements that must be met in order for a plan to be considered a PHSP. ... When the plan represents (i) an undertaking by one person, (ii) to indemnify another person, (iii) for an agreed consideration, (iv) from a loss or liability in respect of an event, (v) the happening of which is uncertain, it will be considered to be in the nature of insurance. ...

Leung, CA August 26, 2008 Dear XXXXXXXXXX: Re: Overseas Employment Tax Credit ("OETC") We are writing in reply to your letter of June 25, 2008 in which you requested our view as to whether your employer's activities described below would be considered to be carrying on business outside Canada under a contract in respect of those activities described in clause 122.3(1)(b)(i)(B) of the Income Tax Act (the "Act") ("Qualifying Activities"). ... " (Emphasis added) Based on the above, we are of the view that a specified employer would not be considered to be carrying on business outside Canada under a contract with respect to one or more of the Qualifying Activities where the specified employer merely sends its employees to a foreign manufacturer to supervise the production of goods that the employer has committed to purchase, regardless of whether engineering knowledge is or is not applied by such employees in performing their employment duties in supervising the production of goods. ...

In the context of an individual's appointment as a member on the Committee, in our view the places where such meetings are held will be considered to be regular places of employment. ... Subsection 81(3.1) of the Act excludes from income certain amounts that would otherwise be considered income from office or employment. ...

The deceased's spouse will not be considered married to the deceased after the death of the spouse. ... The deceased's spouse will not be considered to be married to the deceased or in a common-law partnership with him after his death. ...

If, based on the terms of the contract, the mortgage fee is compensation for services rendered and the service to which the mortgage fee relates can be considered to be rendered at the time the mortgage funds are advanced, paragraph 12(1)(b) of the Act would appear to have application at that time. ... If a debt is merely doubtful of collection, it should not be claimed as a bad debt but should be considered for purposes of a reserve for doubtful debts under subparagraph 20(1)(l)(i) of the Act. ...

A listing of places that are considered to be prescribed zones for these purposes can be found in Guide T4039: "Northern Residents Deductions- Places in Prescribed Zones". ... A residence is considered to be a self-contained domestic establishment if it is a living unit with restricted access that contains a kitchen, bathroom and sleeping facilities. ...

If the social committee is not funded and controlled by the employer, a prize won via lottery from the social committee is considered to be a windfall. ... Where the prize is paid for by the Committee, or acquired by the Committee from a third party unrelated to the Employer (such as a gift certificate donated by a local store), the employee in receipt of the prize will not be considered to have received a taxable benefit from employment. ...

You have concluded that the remaining 50% of the capital gain, i.e. the non-taxable portion, should be added to Canco's CDA for the following reasons: FAPI comprises property income, income from a business other that an active business, and taxable capital gains, and the elements of FAPI retain their nature in the hands of Canco; the purpose of the rules in sections 91 to 95 is to tax Canco on very specific items earned by foreign affiliates, but having done so, Canco should be entitled to the same benefits that would accrue to Canco, had Canco earned the items directly; and under the proposed foreign investment entity regime, capital gains realized by the non-resident entity are considered to be capital gains of Canco, and are added to Canco's CDA. ... The amount is considered to be income from property, unless proposed subsection 94.2(20) applies. ...

Depending on the nature of the payment and the arrangements or circumstances under which it is made, a payment may be considered: (a) income from business; (b) income from an office or employment; or (c) a scholarship, fellowship, bursary, prize or research grant. ... Accordingly, the Payment is not considered income from an office or employment. ...