9 July 2003 General Information Letter 45830 - GENERAL INFORMATION LETTER [Waiving Proposed Assessment Relating to Reliance on the Section 156 Election]

Dear XXXXX:

Thank you for your letter XXXXX. In your letter, you requested that the portion of CCRA's proposed assessment relating to XXXXX reliance on the section 156 election for the audit period up to XXXXX be waived. The basis for this request was that XXXXX.

In your view, part (2) of paragraph 11 of this Memorandum, supplemented by paragraphs 12 and 13, present incomplete information concerning the registration requirements for being closely related under subsection 128(2). We have examined the Memorandum in question, GST Memoranda Series 17.14, Election for Exempt Supplies (November 1994), in light of the points you raise in your letter. We have found that when read as a whole and in context, paragraph 11 of the Memorandum along with paragraphs 12 and 13, give a complete account of all the requirements for being closely related as set out in section 128 of the Excise Tax Act.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-4394.

Yours truly,

Doris McMullan
Corporate Reorganizations Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate