Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
2001-010717
November 21, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Martin Cauchon, Minister of National Revenue, has asked me to reply to your correspondence of September 28 and October 25, 2001, addressed to the Honourable Paul Martin, Minister of Finance, concerning the income tax treatment of the XXXXXXXXXX foreign spin-off.
As noted by Mr. Martin in his letter to you of October 16, 2001, there are many reasons why a particular foreign spin-off may not be on the Canada Customs and Revenue Agency (CCRA) list to which you refer. In some cases, the CCRA has simply not yet added a particular foreign corporation that has been approved to the list, which is updated monthly. However, you should be aware that in cases where the CCRA determines that a foreign spin-off does not qualify for the tax deferral available under section 86.1 of the Income Tax Act, no information regarding the application by the foreign corporation is published by the CCRA. The confidentiality provisions of the Act preclude me from disclosing information relating to a particular taxpayer, including a foreign corporation, to the public, without the written consent of the taxpayer or authorized official of the corporation.
As the CCRA is unable to respond to your request for detailed information concerning the income tax status of the XXXXXXXXXX foreign spin off, may I suggest that you contact XXXXXXXXXX directly for this information. I understand that you have already referred to the questions and answers prepared by the CCRA regarding the CCRA's administration of the new legislation with respect to foreign spin-offs, which can be obtained at www.ccra-adrc.gc.ca/tax/business/taxtopics/foreign-e.html.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
Eliza Erskine
952-1361
November 2, 2001
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