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.
Principal Issues: Brazil Inflationary Monetary Adjustments.
Position:
To close file. Second consideration of our opinion 982557 (December 23, 1999,
J. Stalker). Opinion unchanged.
Reasons:
February 23, 2001
Toronto Centre TSO International Section
International Audit J. Stalker
Group 452-2-1 957-2118
Attention: Larry Forget
2000-003021
Brazilian Foreign Affiliates of XXXXXXXXXX - Inflationary Monetary Adjustments
We understand that the client's representatives have communicated to you their desire to drop their opposition to his reassessment on the above-noted matter.
However, for your records, we wish to confirm that we considered the further comments from XXXXXXXXXX letter to us (copy attached) and stand by our conclusion in our December 23, 1999 memorandum. We also consulted with the Department of Finance for their input on the negotiations of the Canada-Brazil Income Tax Convention (1985). The consequence of that consultation confirmed our position that the provisions of Article 22 of that Convention were not intended to and do not provide that the computation of earnings from an active business of a Brazilian foreign affiliate include the monetary adjustment for Brazilian inflation.
We understand that you will ensure that XXXXXXXXXX do not expect a response from the Rulings Directorate to their letter.
We trust our comments will be of assistance. Please call Ken Major if you have any further questions.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the CCRA's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure including information that could disclose the identity of the taxpayer.
Should your client request a copy of this memorandum, they can be provided with the LAD version or they may request a copy severed using the Privacy Act criteria which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at (819) 994-2898. The severed copy will be sent to you for delivery to the client.
for Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
Attachment
- 3 -
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, 2001
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, 2001
Email this Content