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You requested our comments on whether the use of a company aircraft by a shareholder/employee is considered to be an employment benefit or a shareholder benefit. ... The benefit to a shareholder-employee is generally considered to be derived in his or her capacity as shareholder and is taxable as a shareholder's benefit under subsection 15(1) if: (a) the shareholder-employee controls the corporation or is one of a related group that controls the corporation or any affiliated corporation, and (b) there is extensive use of the aircraft for personal purposes by the shareholder-employee or, because of the latter's position, by relatives or friends of the shareholder-employee. ...

19 May 2009 External T.I. 2007-0263441E5- Tax Treaties Unedited CRA Tags Articles 4 and 28(3) of the Canada-Luxembourg Tax Convention Principal Issues: Whether a SOPARFI is a resident of Luxembourg for the purposes of the Canada-Luxembourg Tax Convention Position: A SOPARFI that has a material economic nexus to Luxembourg will be considered to be a resident of Luxembourg for the purposes of the Canada-Luxembourg Tax Convention Reasons: See letter XXXXXXXXXX 2007-026344 A. ... Caveat Although a SOPARFI would normally be considered to be a resident of Luxembourg for the purposes of the Treaty, the CRA will consider the application of the general anti-avoidance rule in section 245 of the Act to deny a treaty benefit to a SOPARFI where a 1929 Holding Company or a Milliardaire Holding Company converts into a SOPARFI primarily to obtain a tax benefit under the Treaty. ...

To the best of your knowledge and that of your client, none of the issues involved in the ruling request is: in an earlier return of your client or a related person, being considered by a tax services office or taxation center in connection with a previously filed tax return of your client or a related person, under objection by your client or a related person, before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, or the subject of a ruling previously considered by the Directorate in respect of your client or a related person. ...

We understand that to the best of your knowledge, and that of the taxpayer involved, none of the matters considered in this ruling request are: (a) in an earlier return of the taxpayer or related persons; (b) being considered by a tax services office or tax centre in connection with a previously filed tax return of the taxpayer or related persons; (c) under objection by the taxpayer or related persons; (d) before the courts; or (e) the subject of a ruling previously issued by this Directorate to the taxpayer or related persons. ...

This means that the entity can distribute capital gains to its members without affecting its eligibility for exemption under paragraph 149(1)(l) since this would not be considered a distribution of income. ... Trusts are considered to be separate persons under the Income Tax Act. ...

An amount received by an individual, in the year that was in the course of earning income from a business, from a government, where the amount can reasonably be considered to be received as an inducement is included computing income of the individual pursuant to 12(1)(x) of the Act. ... Therefore in our opinion, the amount was received from a government, Home Town, by the Individual in the year in the course of earning income from a business and the amount can reasonably be considered to be received as an inducement under paragraph 12(1)(x) of the Act. ...

Generally, for a course to be considered to be at the “post-secondary level” the course should provide credit towards a degree, diploma or certificate and a prerequisite for taking the course should be completion of secondary school. ... For applicants who do not have the minimum admission requirements for a Diploma Program but who are at least 19 years of age by the first day of classes may be considered as mature students. ...

Position: General comments provided Reasons: The CRA's position is that interest income, regardless of source, is considered to be income from property for the purpose of subsection 149(5). ... Interest income, regardless of its source, earned by a club is considered income from property for the purpose of subsection 149(5) of the Act. ...

You have advised us that to the best of your knowledge and that of the taxpayers involved, none of the issues involved in this rulings are: (i) dealt with in an earlier return of the taxpayers or a related person; (ii) being considered by a Tax Services Office or Taxation Centre in connection with a previously filed tax return of any of the taxpayers or a related person; (iii) under objection by any of the taxpayers or a related person; (iv) before the courts or, if a judgement has been issued, the time limit for an appeal to a higher court has expired; or (v) the subject of a ruling previously issued by the Income Tax Rulings Directorate. ... For greater certainty, when considering the application of section 112 of the Act, Profitco will not acquire or be considered to have acquired the Preferred Shares in the ordinary course of business carried on by it. ...

.: E 9729770), in reply to the question whether post-sales services performed by a U.S. subsidiary of a Canadian parent corporation on products purchased by customers directly from the Canadian parent would be considered "services performed in connection with... the sale" for the purposes of paragraph 95(3)(b), Canada Customs and Revenue Agency answered, in part, as follows: "Generally, however, it is our view that only services that are directly related to the sales function would qualify. ... And on that basis you submit that the […] services described herein should be considered services performed in connection with the sale of goods by Canco. ...