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 Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
DRAFT
CPTS
May 20, 1994
Question No. 27
SHAREHOLDER LOANS, SUBSECTION 15(2)
The issue of the meaning of a "series of loans and repayments" in the context of shareholder draw accounts was addressed in the case of Uphill Holdings Ltd.,et al v. MNR (TCC), 93 DTC 148. The success of the taxpayer's appeal on this issue raises the following questions: Is the Department planning an appeal of Uphill? If not, is it reconsidering its position on treatment of shareholder draw accounts in light of the decision? Can we expect a related revision of Interpretation Bulletin IT- 119R3?
DEPARTMENT'S POSITION
The Uphill decision is not being appealed. This issue is presently under review and it will depend on the outcome as to whether changes to IT-119R3 will be necessary.
A.M.Brake
April 25, 1994
7-941088
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