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You indicate that such land was initially considered to be a capital property of both taxpayers; however, the taxpayers then undertook to subdivide and develop a two acre portion of the land for resale and commenced certain improvements. As a result, you advise that the income producing use of that two acre portion of the land was changed to another income producing use at that time and that any gain on a subsequent sale of that portion of the land would be on income account, rather than capital account, since that portion of the land would be considered to be inventory of the taxpayers. ...

As discussed in the above noted conversation, we have considered your submissions on the taxation in Canada of amounts received by a Canadian resident out of or under a United Kingdom personal pension scheme ("PPS") and the ability to transfer these amounts to a registered retirement savings plans ("RRSP"). ... Amounts received out of a PPS scheme will also not fall within the provisions of paragraph 56(1)(a) of the Act as superannuation or pension benefits except to the extent the PPS can be considered to be a superannuation or pension plan. ...

When the terms of a loan arrangement are such that the total of all repayments due in respect of the loan do not exceed the loan amount, the loan would be considered to be interest-free. ... In this respect, you should note that, as stated in paragraph 5 of Interpretation Bulletin IT-377R, acting in the capacity of an executor of an estate may be considered to be an office. ...

Accordingly, assets leased by the partnership for use in its active business carried on primarily in Canada will be considered to be used in an active business carried on primarily in Canada by the corporate partner. If these assets are owned by a corporation related to the corporate partner they will be considered to be "assets used principally in an active business carried on primarily in Canada by the corporation or by a corporation related to it", as described in subparagraph (c)(i) of the definition of QSBCS in subsection 110.6(1) of the Act. ...

You have also asked that we comment on the accuracy of the following statements: 1.Incentive awards are taxable benefits under paragraph 6(1)(a) of the Income Tax Act and are not "gifts" since they are based on performance. 2.An employee who is given a plaque or trophy is not in receipt of a taxable benefit. 3.An employee in receipt of other non-cash awards is required to include the fair market value of such an award in income as a taxable benefit. 4.While an inscription or a logo might reduce the resale market value of an article, its cost remains the same and the cost should be considered as the value of the benefit under the Income Tax Act. 5.When a non-cash benefit is being provided, then no tax withholding is required. 6.Withholding is not required from cash award of up to $500, although the award is taxable and must be reported on the form T4 Supplementary at year's end. 7.An employer may choose to pay the tax liability which results from the inclusion, in an employee's income, of the value of an award. ... Each situation of this nature should be considered on its own merits. ...

Reasons FOR POSITION TAKEN: Consistent with the position in 940504 (no-fault benefits) 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 each 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. ...

However, where an agreement or order, made after April 1997, varies a child support amount payable from the last payment made before May, 1997, the day on which the first payment of the varied amount is required to be made is considered to be the "commencement day". ... Reasons: Example 1- The agreement is deemed to have been made in September 1997; but since the agreement, with respect to June of 1997, varies the amount payable from the amount in April, 1997, the commencement day is considered to be June of 1997. ...

However, since 1977, the Department has administratively considered those bands that qualify for exemption under paragraph 149(1)(c) of the Act on the basis of being public bodies performing a function of government in Canada, to be Canadian municipalities for purposes only of issuing receipts under sections 110.1 and 118.1. It is a question of fact as to whether an Indian band may be considered to be a public body performing a function of government in Canada and thereby qualify for exemption from Part I tax pursuant to paragraph 149(1)(c) of the Act. ...

In accepting that a farming business may have been carried on in a given situation, we must point out that each property would have to be considered on its own merits as to whether it was used primarily in the business of farming throughout the qualifying period. ... However, in a series of transactions involving a transfer under subsection 73(3) of the Act, and an arm's length sale of farm property, the child could be considered to be the agent of the parent. ...

Where the foregoing is established to be the situation, the corporation will be looked upon as merely an agent for the shareholder who will be considered to be the beneficial owner of the property. ... Where it is established that property is held by a corporation as agent for a shareholder, the shareholder will be considered to be the beneficial owner of the property and all the normal consequences of ownership of the property will flow from the arrangement. ...