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Position: General comments provided Reasons: CRA's position is that interest income, regardless or 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. ...

24 March 2015 External T.I. 2012-0470991E5 F- Mutual fund trust CRA Tags 39(4) 104(21) 132(6) 39(5) Principales Questions: (1) Whether the factors and comments provided in paragraph 11 of the Interpretation Bulletin IT-479R may be considered to determine if gains or losses triggered on the disposition of securities by a mutual fund trust ("MFT") are on income account or on capital account. (2) What is the impact of the election made by a MFT under subsection 39(4) regarding the nature of the MFT's income attributed to its beneficiaries? ... Position Adoptée: (1) Yes. (2) Subsection 104(21) may apply. (3) Generally yes, but it is a question of fact to determine whether the only undertaking of a MFT is the investing of funds in property. (4) The decision may be considered. ...

Reasons: 1) Paragraphs 7000(1)(a) to (d) of the Regulations are not applicable. 2) The interest paid is considered to be 'fully exempt interest' as defined in subsection 212(3) of the Act for the purposes of subparagraph 212(1)(b)(i) of the Act. ... We understand that, to the best of your knowledge, and that of the taxpayer, none of the issues described herein is: a) being considered by a Tax Services Office or Taxation Centre in connection with a previously filed tax return of the taxpayer or a related person; b) under objection by the taxpayer or a related person; nor, c) before the Courts or, if a judgment has been issued, the time limit for appeal to a higher court has expired. ...

16 June 2014 External T.I. 2013-0515431E5- International traffic and airline enterprise CRA Tags Treaties Article XV 81(1)(c) 115(3) 248(1) "international traffic" ITR 102 153(1) Principal Issues: (1) Whether a non-resident airline corporation acting as a service provider for Canco can be considered as carrying on the business of transporting passengers within the meaning of the term "international traffic" in subsection 248(1) when the passengers are technically Canco's passengers; (2) Whether the non-resident aircraft pilots employed by Forco can be viewed as having been paid indirectly by Canco, as required under subsection 115(3); (3) Whether Forco can be viewed as operating an aircraft in international traffic as per Article 15 of the Canada-UK Convention and if so, whether its crew members must apply for a waiver under section 102 of the Regulations. ... More specifically, you asked for our views as to: 1) whether a non-resident airline corporation acting as a service provider for Canco can be considered as carrying on the business of transporting passengers within the meaning of the term "international traffic" in subsection 248(1) when the passengers are technically Canco's passengers; 2) whether the non-resident aircraft pilots employed by Forco can be viewed as having been paid indirectly by Canco, as required under subsection 115(3); and 3) whether Forco can be viewed as operating an aircraft in international traffic as per Article 15 of the Convention and if so, whether its crew members must apply for a waiver under section 102 of the Regulations. ...

Paragraph (e) of the definition of TCP in subsection 248(1) describes the conditions under which the shares of a public company would be considered TCP: "a share of the capital stock of a corporation that is listed on a designated stock exchange...…, if, at any particular time during the 60-month period that ends at that time, (i) 25% or more of the issued shares of any class of the capital stock of the corporation, or 25% or more of the issued units of the trust, as the case may be, were owned by or belonged to one or any combination of (A) the taxpayer, and (B) persons with whom the taxpayer did not deal at arm's length, and (ii) more than 50% of the fair market value of the share or unit, as the case may be, was derived directly or indirectly from one or any combination of properties described under subparagraphs (d)(i) to (iv). ... Thus, for the purpose of determining whether the non-resident partner is taxable under subsection 2(3) of the Act, the partners of the partnership are considered to have disposed of their respective interest in the property of the partnership and paragraph 96(1)(c) does not apply (footnote 4). ...

The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization (it is not the residency of the individual directors that is relevant, but the location at which major organizational decisions are made). ... Where the facts of a particular situation fit the facts and connecting factors as weighted in the Folster decision, income is generally considered to be sufficiently connected to a reserve and, therefore, to be exempt from tax. ...

If the transactions are planned together for the purpose of achieving an estate freeze, the transactions may be considered to be part of the arrangement. ... It may not reasonably be considered that one of the purposes of the payment was to significantly alter the value of the interest of a specified shareholder of the corporation. 2. ...

/ Can the CRA explain why subparagraph 20(1)p)(i) should be interpreted in a different way than paragraph 50(1)a) regarding the words « bad debts », namely on whether part of the debt can be considered a « bad debt »? ... Each transaction for a particular account is considered as part of the debt. b) Si une créance visée à l'alinéa 50(1)a) L.I.R. est réglée en partie et que le créancier établit que le solde dû est irrécouvrable, le choix du paragraphe 50(1) L.I.R. pourra se faire à l'égard de la portion irrécouvrable./ If a debt under section 50(1)a) is partially settled and the creditor establishes that the balance is unrecoverable, the election under 50(1) will be permitted for the unrecoverable part. c) Voir les explications précédentes. / Please refer to A) and B). ...

Assumption of the debt receivable by another party is not considered payment of the debt by the borrower. 2. ... However, as discussed in ¶ 29 of IT-119R4, in any given situation, all of the relevant factors would need to be considered to determine whether a series of loans or other transactions and repayments existed and bona fide repayments would not be seen as part of a series of loans or other transactions and repayments. ...

Where a student is not considered to be enrolled as a full-time student, the student may be eligible for the part-time education tax credit if the program in which the student is enrolled meets the requirements of a specified educational program and the student spends not less than 12 hours per month on courses in the program. ... This paragraph states, in part: Generally, for a course to be considered to be at the post-secondary school level: a) the course should provide credit towards a degree, diploma, or certificate; and b) a prerequisite for taking the course should be completion of secondary school. ...