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However, by virtue of the "available for use rules" found in subsections 13(26) to (31) of the Income Tax Act (the "Act'), CCA for a Class 43.1 or 43.2 property that has been acquired and which is not considered available for use at the end of a taxation year may be restricted until such time as the property is available for use. ... Where a taxpayer is not a principal business corporation ("PBC") and acquires a Class 43.1 or Class 43.2 property primarily to generate electrical energy for sale to the OPA under the Program, the property will be considered a "specified energy property" for purposes of subsection 1100(25) of the Regulations and CCA on that property cannot be deducted to the extent that doing so would create or increase a loss from all such property owned by the taxpayer. ...

While in many instances, a student will be considered a full-time student for ETC purposes if the student's program is a qualifying educational program, these tests remain distinct and are not necessarily the same. ... It should be noted that a student eligible for the disability tax credit, or who has a mental or physical impairment making it unreasonable for them to be enrolled as a full-time student, is considered eligible for the full-time ETC where they qualify for the part-time ETC. ...

Accordingly, in XXXXXXXXXX's view, it was not a registered securities dealer and should not be considered a "financial institution" for purposes of Part I.3 and sections 142.2 to 142.7 of the Act. Our Comments We have considered XXXXXXXXXX's October 3, 2007 submission. ...

Reverse Stock-Split In general, where a share of the capital stock of a corporation is cancelled by the corporation, with or without any payment, the shareholder is considered to have disposed of the share to the issuing corporation. ... Our position on the tax implications of a reverse stock-split is set out in the first paragraph of Interpretation Bulletin IT-65, "Stock Splits and Consolidations" (available on the CRA website): (W)here all the shares of a class of stock of a corporation are replaced by a... lesser number of shares of the same class of stock of the same corporation in the same proportion for all shareholders, in circumstances where there is no change in the total capital represented by the issue, there is no change in the interest, rights or privileges of the shareholders and there are no concurrent changes in the capital structure of the corporation or the rights and privileges of other shareholders, no disposition or acquisition is considered to have occurred. ...

However, we have considered your enquiry and, in accordance with the guidelines set out in paragraph 22 of Information Circular IC 70-6R5 dated May 17, 2002, issued by the CRA, we provide the following comments. ... Pursuant to subparagraph 12(1)(x)(viii) of the Act, amounts that can reasonably be considered to be in respect of the acquisition, by the payer, of an interest in the taxpayer, or the taxpayer's business or property, are not subject to income inclusion under paragraph 12(1)(x). ...

You note that, where these individual taxpayers acquire a property that is described in Class 43.1 or 43.2 primarily to generate electrical energy for sale, the property will be considered "specified energy property" for purposes of subsection 1100(25) of the Regulations and CCA on that property cannot be deducted to the extent that doing so would create or increase a loss from all such property owned by the taxpayer. ... Where a person cannot be considered to have acquired a particular property for the purpose of earning income, the property would not be eligible for inclusion in any CCA class. ...

6 March 2008 Internal T.I. 2008-0269711I7- Prescribed Shares- Flow-Through Share Unedited CRA Tags 66(15) 6202.1(1)(c)(i) of the Regulations Principal Issues: Whether a share issued under a flow-through share agreement which included an indemnity clause similar to that considered in the JES Investments case would be a prescribed share Position: Yes Reasons: Conclusion of FCA in the JES Investments case March 6, 2008 Brett Evers HEADQUARTERS A/Manager Income Tax Rulings Income Tax Section (Group 2) Directorate Technical Applications & Valuations Division Ted Harris Compliance Programs Branch (613) 957-2114 Attention: David Shugar 2008-026971 Prescribed Shares for Purposes of the Flow-Through Share Rules We are writing in response to your memorandum of February 27, 2008 wherein you requested our opinion as to whether the type of indemnity clause contained in paragraph 10 of the Share Subscription and Renunciation Agreement (the "Indemnity Clause") between Deena Energy Inc. and JES Investments Ltd. described in paragraph 8 of the Federal Court of Appeal's decision in The Queen v. ... Legislation Subparagraph 6202.1(1)(c)(i) of the Regulations provides that a share will be a prescribed share for purposes of the "flow-through share" definition in subsection 66(15) of the Act if, at the time of its issue, (c) any person or partnership has, either absolutely or contingently, an obligation (other than an excluded obligation in relation to the share) to effect any undertaking, either immediately or in the future, with respect to the share or the agreement under which the share is issued (including any guarantee, security, indemnity, covenant or agreement and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the holder of the share or, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be) that may reasonably be considered to have been given to ensure, directly or indirectly, that; (i) any loss that the holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members ownership or disposition of the share or any other property is limited in any of the partnership, as the case may be, may sustain by reason of the holding, respect, or (ii) the holder of the share and, where the holder is a partnership, the members thereof or specified persons in relation to the holder or the members of the partnership, as the case may be, will derive earnings, by reason of the holding, ownership or disposition of the share or any other property. ...

It is the current use made of the borrowed money in a particular year rather than the original use of the money, which must be considered in determining whether the interest paid or payable with respect to the borrowed money is deductible in the particular year. ... Phyllis Barbara Bronfman Trust, 87 DTC 5059, confirmed that it is the current use made of the borrowed funds in a particular year, rather than the original use of the funds, which must be considered in determining whether the interest paid or payable with respect to the borrowed funds is deductible in a particular year. ...

If an individual's course of conduct indicates that in securities transactions, the individual is disposing of securities in a way capable of producing gains, with that object in view, and the transactions are of the same kind and carried on in the same fashion as a trader or dealer in securities, the individual would generally be considered to be carrying on a business with respect to his or her securities transactions, such that the election pursuant to subsection 39(4) of the Act would not be available. Some of the factors to be considered in ascertaining whether a taxpayer's conduct indicates the carrying on of a business are listed in paragraph 11 of IT-479R and are as follows: (a) frequency of transactions- a history of extensive buying and selling of securities or a quick turnover, (b) period of ownership- securities are usually owned for only a short period of time, (c) knowledge of the securities market- the taxpayer has some knowledge of or experience in the securities markets, (d) security transactions form a part of the taxpayer's ordinary business, (e) time spent- a substantial part of the taxpayer's time is spent studying the securities market and investigating potential purchases, (f) financing- security purchases are financed primarily on margin or some form of debt, (g) advertising- the taxpayer has advertised or otherwise made it known that he is willing to purchase securities, and (h) in the case of shares, their nature- normally speculative in nature or of a non-dividend type. ...

Such activities are considered to be those normally associated with the on-site fabrication and erection of buildings, roads, bridges, parking lots, driveways, etc., which are intended to be permanently affixed to the land on which they are built. ... The business activities that you have described suggest that they could be considered to be carried out in the course of a construction undertaking. ...