Words and Phrases - "used"

a
89
b
44
c
85
d
56
e
43
f
31
g
20
h
15
i
77
j
2
k
2
l
32
m
57
n
28
o
39
p
81
q
3
r
78
s
95
t
47
u
16
v
10
w
23
y
2

2 November 1999 Internal T.I. 9923277 F - PARTICIPATION INDIVISE - TEST POUR 1100(14)

Summary Under
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(14)
qualitative and quantitative test applied re the use test

In discussing the quantitative and qualitative tests that had been applied in the jurisprudence (including Gulf), the Directorate stated:

The quantitative criterion is based on the percentage of occupancy of the building, while the qualitative criterion is based on the purpose for which the building is used. The qualitative criterion is based on the relationship between the building owner's business and the businesses operating in the rented space. Where a taxpayer can demonstrate that the space is rented for reasons other than to produce gross rental income, such evidence indicates that the property is probably not a "rental property" for the purposes of subsection 1100(14) of the Regulations.

The Directorate went on to find that it was not necessary to take into account the use made by the other co-owners of an immovable in determining whether the taxpayers’ interest in the immovable constituted a "rental property" since their business is independent of the businesses carried on by the other tenants and co-owners.

Words and Phrases
used

2 October 2000 External T.I. 2000-0015825 F - ACTIFS AUX FINS DE LA LOI

Summary Under
Tax Topics - Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c)
a future income tax asset (including one not recognized on the balance sheet) must be taken into account for QSBCS and SBC purposes, but is not used in the business

CCRA indicated that, for the purposes of the “qualified small business corporation share” and “small business corporation” definitions, is a future income tax asset (either presented on the balance sheet or still unrecognized) to be taken into account, noting that “the Act refers to the assets of a business and not to the assets shown on a corporation's balance sheet,” so that unrecognized future income tax assets should also be taken into account.

However, in finding that any such asset would not be considered to be used in a business, it stated:

[A] future tax asset only represents the value of certain future economic benefits in the form of future tax savings resulting from deductible timing differences, unused loss carryforwards or certain unused tax reductions. In the light of the above observations, the value of a potential tax reduction cannot be considered to be used in an active business carried on in Canada, because it is not an employed or risked in that business.

Words and Phrases
asset used
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation a future income tax asset is an asset for QSBCS and SBC purposes, but is not used in the business 54