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When a loan is made to a shareholder in the ordinary course of the creditor's business with the same terms and conditions as offered to the public at large, the terms of repayment will normally be considered reasonable for the purpose of proposed subsection 15(2.3) of the Act. In particular, the minimum payments required under the terms of most commercial revolving credit sources will be considered to meet the requirement that bona fide arrangements be made for repayment of the debt or loan with a reasonable time for the purposes of proposed subsection 15(2.3) of the Act. ...

Principal Issues: renegotiation of employment contract to reduce salary in exchange for increased (non-taxable) benefits both in and outside of a flexible benefit plan Position: diversion of existing salary entitlements to pay for benefits is taxable but, provided that a valid renegotiated contract has been substituted for the former contract, additional benefits provided outside a flex plan will not be taxed as salary- if an employee's salary entitlement under a contract that has not expired is diverted to create credits under a flex plan, the plan will be considered to be funded by means of employee contributions Reasons: once a contract of employment has expired (as is common in a collective agreement which is renegotiated at regular intervals), the employee's right to maintain the level of salary is open to negotiation; with the result that a salary rollback combined with increased benefits does not involve a forfeiture of an existing entitlement. ... In such circumstances, the amounts withheld from income by the employer and used to cover the premium obligations will not be considered as employer contributions, but rather after-tax employee contributions. ...

The amount of a reimbursement, among other things, received by a taxpayer in respect of the cost of property or in respect of other expenditure, if included in income under paragraph 12(1)(x) of the Act may be considered a non-government assistance payment. ... Where, under a contractual arrangement, NRCo does not carry on any business in Canada and reimburses CANCo in respect of SR & ED expenditures incurred by CANCo in Canada and CANCo includes the amount of the reimbursement in computing its income from a business carried on in Canada pursuant to subsection 9(1) of the Act, it is our position that the reimbursement would not be considered to be a non-government assistance or a contract payment for the purposes of paragraph 127(11.1)(c) of the Act. ...

Therefore, if the $50 was considered to be tuition for the purposes of paragraph 118.5(1)(a) of the Act, this amount and the amount paid in respect of the night course would satisfy the requirement that the aggregate of tuition fees paid to an educational institution exceed $100. ... In such circumstances, it is our view that the amount of $50 is in the nature of a withdrawal charge that cannot be considered to relate to any instruction the student may have received. ...

According to subsection 13(27), the vessel will be considered to be available for use at the earliest of: (a) the time at which the property is first used by the taxpayer to earn income (which is 1993 in the case at hand),... ... What is at issue, though, is whether the vessel is considered to be acquired "after Dec. 2, 1992 and before 1994". ...

In the event the $300,000 is not deductible, will the fee be considered to be income to Holdco in its 1993 year? ... Will the bonus be considered remuneration to Mr. A in 1993 and taxable in his hands in that year? ...

Consequently, when a dividend that gives rise to the dividend refund is paid by the payer corporation, that portion of the dividend sufficient to give rise to the dividend refund would be considered to be paid out of safe income of the payer corporation. In the hypothetical situation described above, if the amount of the $125 dividend which is subject to Part IV tax is $25, this portion of the dividend received by Newco and subject to tax under Part IV of the Act would be considered to be paid out of the safe income of Opco. ...

Such income and benefits are considered to be property of an Indian on a reserve. In order to reach that decision the Court had to conclude that the situs of the debtor (being on a reserve) is not the sole factor to be considered in exempting income from taxation since unemployment insurance benefits are not paid from a reserve. ...

With respect to the wording set out above, we would first note that if the grandmother only pays amounts that can be regarded as being for her accommodation and meals, it is our view that no amount should be considered to have been paid as support for the granddaughter. ... It is, accordingly, our view that the granddaughter should be considered to be wholly dependent solely on her parents for support. ...

Response to your first question The at-risk rules are relevant for a partner in a general partnership when he is considered a limited partner by virtue of one or more of the paragraphs (a) to (d) of subsection 96(2.4) of the Act. ... Consequently, a general partner of such a partnership will not be considered to be a limited partner by virtue of paragraph 96(2.4)(b) of the Act only by reason of the non- recourse or limited recourse loan. ...