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Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in paragraphs 3 and 5 of IT-365R2. 961246 XXXXXXXXXX Attention: XXXXXXXXXX XXXXXXXXXX, 1996 Dear Sirs: Re: Advance Income Tax Ruling Structured Settlement XXXXXXXXXX We are replying to your letters of XXXXXXXXXX, with enclosures wherein you request an advance income tax ruling on behalf of the above-named taxpayer with respect to a proposed structured settlement for damages arising out of personal injuries suffered by the taxpayer. ... In consideration of the XXXXXXXXXX making such payments, the Plaintiffs settle their claims against the Defendants and the insurers of XXXXXXXXXX will not, however, be released and discharged from making such payments and each payment shall to the extent thereof and only to that extent, operate as a pro tanto release and discharge of the obligation to make such payments. 7.XXXXXXXXXX proposes to fund its obligations to make the payments in 5 above by the purchase of an annuity contract issued by XXXXXXXXXX The annuity contract will be non-commutable, non-assignable and non-transferable. 8.The owner and annuitant (beneficiary) under the annuity contract will be the XXXXXXXXXX however, an irrevocable direction will be executed in respect of the annuity contract directing the issuer to make the payments directly to XXXXXXXXXX or XXXXXXXXXX legal representative, or XXXXXXXXXX estate, as the case may be. 9.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Reasons FOR POSITION TAKEN: The position is considered to be consistent with the Department's position in paragraph 3 which indicates that damages paid in the form of periodic payments are not taxable. ... The annuity contract will be non-commutable, non-assignable and non-transferable. 8.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

However, if the shares of the parent acquired by the vendor are converted into shares of the amalgamated corporation in circumstances where the fair market value of such shares may be considered to be determinable primarily by reference to the fair market value of a particular property, or to any proceeds from the disposition of a particular property, such shares of the amalgamated corporation will be considered to have been acquired in substitution for the particular property pursuant to proposed paragraph 88(1)(c.3). ...

Reasons FOR POSITION TAKEN: Consistent with the position in 940504 and the Department's position in paragraphs 3 and 5 of IT-365R2, the periodic payments are considered to be in the nature of non-taxable damages. ... However, an irrevocable direction will be executed in respect of the annuity contract directing Lifeco to make the payments directly to the Claimant or XXXXXXXXXX estate, as the case may be. 9.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Reasons FOR POSITION TAKEN: The terms of the settlement are considered to be consistent with the Department's position set out in paragraphs 3 and 5 of IT-365R2. ... However, an irrevocable direction will be executed in respect of the annuity contract directing Lifeco to make the payments directly to the Claimant or XXXXXXXXXX estate, as the case may be. 10.You have advised and you confirm to the best of your knowledge that none of the issues involved in this ruling request is being considered by a Tax Services office or a Tax Centre in connection with a tax return already filed and none of the issues is under objection. ...

Finally, where damages in respect of a breach of contract or tort are paid by the employer to compensate for investment losses caused by the employer as administrator of a registered plan which has been established for a group of employees, such damages paid by the employer to the employees' accounts within the registered pension plan or deferred profit sharing plan or to the individual RRSPs or RRIFs are not considered employment income to the employees. In these circumstances neither the employer nor the employee are considered to have made a contribution to the plan as a consequence of the payment of the damages and thus there is no contribution deduction available. ...

However, the Department has never been asked to consider whether a transfer from an ESOP to an IRA would be considered a contribution to the IRA by the taxpayer or the taxpayer's spouse or former spouse. ... The taxes, other than penalty taxes, withheld by the administrator of the IRA is considered to be non-business taxes paid to the United States. ...

In these situations, the travel is considered related to the duties of the office or employment rather than personal. ... In example I, the total of amounts received from the board is considered to be $15,000. ...

2.Where a corporation participates in a mortgage loan or originates a mortgage loan for which it receives inducement payments, loan fees or commitment fees, will such income be considered "income from investments" for the purposes of the income test in clause 149(1)(o.2)(iii)(C)? ... This view is consistent with CICA Accounting Guideline AcG-4 which concludes that loan fees and commitment fees in certain circumstances would be considered an integral part of the return earned on lending activities and therefore should be recognized as an adjustment of the yield. ...

To the best of your knowledge none of the issues involved in this ruling request is (i) in an earlier return of the taxpayer or a related person, (ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or related person, (iii) under objection by the taxpayer or a related person, (iv) before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, (v) the subject of a ruling previously issued by the Directorate. ... The amount of $XXXXXXXXXX paid to XXXXXXXXXX will not be considered a superannuation or pension benefit or a retiring allowance will not be required to be included in his income for purposes of the Act. ...