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.
Principal Issues: Whether the comments in Technical Interpretation 9718365 ("TI 9718365") are still applicable.
Position: Yes.
Reasons: IT-462.
XXXXXXXXXX
2011-042377
Charles Rafuse
613-247-9237
December 20, 2011
Dear XXXXXXXXXX :
Re: Payments Based on Production or Use
This is in response to your email of October 11, 2011, wherein you requested that we confirm whether the comments in Technical Interpretation # 9718365 ("TI 9718365") still represents the Canada Revenue Agency's ("CRA") views.
Our Comments
We understand that TI 9718365 dealt with a situation involving the application of paragraph 12(1)(g) of the of the Income Tax Act (the "Act"), to a disposition of a partnership interest held as capital property. In TI 9718365 we stated, inter alia, that "Subject to the comments in paragraphs 8 and 9 of IT-462, subparagraphs 5(b) and (c) of IT-462 deal with situations similar to the one described in your letter."
The application of the rules of the Act, including the application of paragraph 12(1)(g) of the Act, can only be determined upon a full examination of all of the relevant facts and circumstances of the particular situation. However, subject to such a determination, generally speaking, the comments in TI 9718365 continue to be applicable.
We trust that these comments will be of assistance.
Yours truly
Michael Cooke
Manager
Capital Transactions Section
Business and Partnership Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2011
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2011
Email this Content