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If a trust is considered to have been established then the comments in IT-369R apply (income/loss from property and taxable capital gain or allowable capital loss from the disposition of the property will attribute to the parent) Reasons FOR POSITION TAKEN: meaning of "transfer" is to "divest, deprive or dispossess of title" and this test is not met. 942711 XXXXXXXXXX Sandra Short March 3, 1995 Dear Sir: Re: Investment in Mutual Funds for the benefit of your children This is in reply to your October 20, 1994 request for an advance income tax ruling concerning the tax consequences of investing funds in an equity mutual fund for the benefit of your now minor aged sons. ... Your second question, which assumes that your monthly contribution to the informal trust account does constitute a transfer of property, is whether the annual distributions by the fund of interest, dividends and gains are considered a subsequent disposition. ...

There is also brief reference to a sectoral stream but projects under that will be considered separately as the need arises. ... Where the latter is the case, the value of the purchase could be considered an amount to which the provisions of paragraph 56(1)(n) of the Act would apply. ...

In our view, this paragraph applies to a refund in that it can be considered an amount received in the year by the taxpayer, from a government, in the course of earning income from a property, as a reimbursement in respect of an expense or outlay. In addition, municipal and school taxes (municipal property taxes) are normally considered by the Department to be an expense of a rental property as discussed in general terms in paragraph 2 of IT-487. ...

Our Comments Where Canco has entered into a licensing agreement for the non-exclusive right to use Commercial Information as described in paragraph 3 above under those circumstances where Canco would not be considered to have acquired ownership of the Commercial Information and the terms of the agreement do not allow Canco unlimited or ongoing use or reproduction of the Commercial Information, it is our view that such a licensing agreement would not be considered a "franchise or rental agreement" for purposes of subparagraph 3(c) of Article XII of the Canada- United States Income Tax Convention (the "Convention"), as recently amended by paragraph 1 of Article 7 of the Protocol signed on March 17, 1995 amending the Convention. ...

Reasons: Giftedness in children is not considered a "mental handicap" under the ordinary meaning of that term. ... Consequently, the specific issues in this case are (i) whether giftedness in a child is considered a mental handicap for the purposes of the Act, (ii) whether the handicap has been assessed by an appropriately qualified person and (iii) in being recommended by the qualified professional, it is recognized that the institution provides the facilities, equipment or personnel specially required for the care and training of individuals with such handicaps. ...

Principal Issues: Do recent changes to the Barbados Exempt Insurance Act enable a captive insurance company, which is a foreign affiliate of a corporation resident in Canada, to be considered, in the context of proposed Income Tax Regulations 5907(11)-(11.2) to be resident in Barbados for purposes of the Canada-Barbados Income Tax Agreement? ... Senécal Attention: XXXXXXXXXX March 18, 1996 Dear Sirs: Re: Barbados Offshore Captive Insurance Companies This is in reply to your letter of December 15, 1995, wherein you request our views as to whether a foreign affiliate of a corporation resident in Canada, and which is incorporated in the Barbados and licensed under the Exempt Insurance Act, 1983 (the "EIA"), will be considered, in the context of proposed Income Tax Regulations 5907(11)-(11.2), to be resident in Barbados for purposes of the Canada-Barbados Income Tax Agreement (the "Agreement"). ...

Cannot determine how option would operate. 2.It could be considered that "a person other than Her Majesty in right of Canada or a province or a Canadian municipality had during the period a right under a contract, in equity or otherwise either immediately or in the future and either absolutely or contingently, to, or to acquire shares or capital of" the corporation. 5-960219 XXXXXXXXXX C. ... In the Department's view, where a corporation has the right to redeem its shares pursuant to the rights attached to such shares, it is considered for purposes of paragraph 149(1)(d) of the Act, that "a person other than Her Majesty in right of Canada or a province or a Canadian municipality had during the period a right under a contract, in equity or otherwise either immediately or in the future and either absolutely or contingently, to, or to acquire shares or capital of" the corporation. ...

Where the employer provides child care to the public at large for a fee greater than that charged to its own employees, the difference is considered to be a subsidy to the employee which must be included in the employee's income from employment. However, it should be noted that where an employee is required to include an amount in income as or on account of the benefit derived from employer assistance with child care, the amount of the benefit included in income will be considered to be an amount paid on account of child care for the purpose of determining the eligible costs under section 63 of the Act. ...

On the other hand, if the amounts have already been paid to you, discussions on their assessment can only be considered through your local district Tax Services Office. ... Vacation pay is considered to be a payment of employment income where it is paid under the terms of an employment contract. ...

These provisions do not provide that the amount computed under those provisions represents an amount of income earned or realized that could reasonably be considered to attribute to the capital gain. ... In our opinion the purpose of paragraph 55(5)(d) is to ensure that taxable surplus of a foreign affiliate that has not been subject to tax in the foreign jurisdiction will not be considered income earned or realized. ...