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If the legal effects do not create a lessee/lessor relationship, even though the agreement may, for GAAP purposes, be considered a capital lease, there will be no exclusion in calculating taxable capital. b)     Will a lessor be entitled to the investment allowance in respect of an asset which is the subject matter of a lease? ...

In our opinion, an investor who maintains an investment in property for the earning of income from that property and who disposes of such an investment would not be considered to be disposing of the investment in the course of a business as business is defined in section 248 of the Act. ...

Accordingly, in this case, 24(1) In addition, 24(1) For the purposes of Article VII, paragraph 2 of the new treaty, the permanent establishment would not be operating "under the same or similar conditions" as those of the enterprise if it was to considered to be renting the assets rather than owing them. ...

This is so because criteria (ii) is clearly not met an criteria (i) may not be met since the shares received were issued as a split of the existing share and not as consideration for other shares. 24(1) IT-65, "Stock splits and Consolidations" provides the following:      "Where all the shares of a class of stock of a corporation are replaced by a greater or 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 interests, rights or privileges of the shareholders and there are 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". ...

With respect to farm assets in particular we draw your attention to paragraph 29 of IT-268R3 where it states the Department's view that a farm corporation which has permanently set aside more than 10% in terms of cost of its assets for investment or non-qualified uses will not qualify as a family farm corporation. 2)     The answer to your second question, regarding whether a particular residence would be considered to be used in the business of farming, is also set out in paragraph 29 of IT-268R3.  ...

The purchase of put options could, in some circumstances, be considered to be a business activity and may subject the RRSP trust to tax under Part I of the Act by reason of paragraph 146(4)(b) thereof. ...

Opinion Requested Your view is that if subparagraphs 6204(1)(a)(iv) and (vi) of the Regulations are read together, the only reasonable interpretation appears to be that the pre-existing obligation of the parent corporation to purchase the shares at FMV would not be a case where the employees can cause the shares to be acquired and, therefore would not result in the shares losing their status as prescribed shares Our Comments In order for a share of the capital stock of the subsidiary corporation to be considered a "prescribed share" under subparagraph 110(1)(d)(ii) of the Act, it must fulfil all of the requirements of section 6204 of the Regulations.  ...

These warrants would be considered property, as that term is defined in subsection 248(1) of the Act, for purposes of subsection 85(1) of the Act. ...

The problem of entering other countries is one that must also be considered. ...

The comments expressed are not advance income tax rulings and are not considered binding on the Department in respect of any taxpayers in accordance with paragraph 24 of Information Circular 70-6R dated December 18, 1978. ...