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S. 212.3(21) deems persons to be unrelated for the purposes of the reorganization exceptions in subsection 212.3(18) if it can reasonably be considered that one of the main purposes of one or more transactions or events was to cause those persons to be related so that one of those exceptions would apply. ... Canco likely would be considered to be dealing at arm's length with Buyco at the commencement of this series of transactions, so that (even before considering the exclusion in s. 212.3(21)), the acquisition of the remaining shares of Canco by Buyco would not be exempted under s. 212.3(18)(a)(i), by virtue of s. 212.3(18)(a)(i)(B), and would be viewed as an indirect investment by Buyco in FA under s. 212.3 (10)(f). ...

Commodities such as lead (see Taylor) and toilet paper (see Rutledge, and see also Fraser) are by their nature not of an investment character, so that their sale likely will be considered to be on income account. ... The sale of property that normally would be considered to be inventory of a business and, thus, held on income account has been found to be sold on capital account where its sale occurred as part of the sale of all the assets of a business (see Frankel and Doughty). ...

As the employee is only entitled to deduct expenses expended in the course of the taxpayer's employment, traveling expenses incurred in traveling between work and home (which generally are considered to be of a personal nature, provided that the home is not used as an office or other work site) do not qualify for deduction even if the "ordinarily away" requirement of s. 8(1)(h)(i) is satisfied (Diemert, Vickers, Blackburn, Gutscher- and the jurisprudence under s. 8(1)(h.1)). ... An employee may be considered to be ordinarily required to carry on his or her duties away from the employer's place of business (which can include a school) where he or she annually attends professional development seminars is accordance with the employer's expectations (Imray), is expected to attend school board meetings at a different location (Patterson), is expected as an implied term of her employment contract to attend such matters as principals' meetings and extracurricular events (Moore), is required to attend a training course in another city (Tremblay) or in the course of his duties as a fire chief must spend time away from the fire station responding to emergency calls or conducting inspections (Gariépy). Reporting to work daily at a trailer of the employer is not considered to be inconsistent with the employer's place of business being elsewhere (Freake). ...

Before reference were made to the prescribed debt obligation rule in Regulation 7000(2)(a) deeming discounts on stripped coupons or non-interest bearing debt to be interest, a zero-coupon bond could not be considered for these purposes to have been acquired as a (capital) investment as the bond does not generate interest income (Bernick), unless the discount from the bond's principal were be characterized as interest income on general principles (see " Discounts "). ... Loan discounts on purchases of distressed debt or venture capital investments Where an entrepreneur acquires the shares and debt of a company in financial difficulty with a view to turning the company around, so that the debt (which was purchased at a substantial discount from the amount owing) may be repaid in his or her hands at a substantial gain, any such gain subsequently realized by him or her will be considered to have arisen from an adventure in the nature of trade, and will be taxable (Sissons, Steeves, Woods, Perkins, Meronek, Hall, Bondar). ... It also would appear that the acquisition of a debt for its face amount (e.g., from an affiliate) is not a transaction of a type that a trader would engage in, so that such debt likely will be considered to have been acquired on capital account (Pollock Sokoloff). ...

Corporations Where a corporation is not deemed to be resident in Canada (for example, pursuant to s. 250(4) as a result of its incorporation in Canada after April 26, 1965), it generally will be considered to be resident in Canada (or another jurisdiction) if its central management and control is exercised there. ... Accordingly, where the directors meet to attend to the important decisions of the corporation's undertaking, the corporation will be considered to be resident (under this jurisprudential test) in the jurisdiction where they hold most or all of their meetings (1143132, Capitol Life, Wood v. ... The UK Supreme Court has indicated that whenever an individual has left the UK to pursue full-time employment abroad, it is likely that he will be considered to have made a "distinct break in the pattern of his life in the United Kingdom," and thereby ceased to be ordinarily resident in the UK, notwithstanding that he or she may not have severed his or her family and social ties with the UK (Davies). ...

The concept of "connectedness" is not defined, but for the purposes of these rules it is intended that the business activities of two corporations be considered "connected" in either of two circumstances. First, business activities can be considered connected where they are similar in nature or "parallel". ... Thus, for example, two corporations could be considered to have connected business activities if the primary activity of one corporation consists of selling the output of, or providing inputs to, the manufacturing process of the other corporation. ...

Effect on control of general partner S. 212.3(25)(b) may act as a relieving measure where a partnership with a non-resident general partner would otherwise be considered to control a CRIC. In this situation, no partner may be a non-resident corporation which (on the look-through basis described in s. 212.3(25)(b)) would be considered to own a majority of the voting shares of the CRIC. ... GP might be considered to control Canco on general principles (see 2000 APFF Roundtable, Q. 21, 2000-0038055), so that s. 212.3(2) applied to the investment. ...

A number of principles (and questions) can be considered to arise from the jurisprudence. ... Examples of when this has been considered to occur: Formal application has been made for subdivision approval for the whole property (Roos, Magilb, see also Jones). ... Given the resulting possibility that the change of use rules can be considered to apply only on an “all or nothing” basis and the Peachey doctrine that a change of use, in order to be recognized, must be “unequivocal,” a substantial argument can be made that no change-of-use can occur until the allocation between the inventory and rental use of the development property in question has been definitively determined through partition of the property. ...