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: Whether revenue of particular P/S is regulated per definition of "designated limited partnership in ss 5900(7) of the Regulations?
Position: no
Reasons: Revenue is subject to regulation if a complaint is made; otherwise the market determines revenues
2000-004975
XXXXXXXXXX Denise Dalphy
(613) 957-9231
Attention: XXXXXXXXXX
January 3, 2001
Re: Definition of "Designated Limited Partnership"
We are writing in reply to your letter dated September 25, 2000 wherein you requested an opinion as to whether the XXXXXXXXXX would qualify for exclusion from the definition of "foreign property" by virtue of the definition of "designated limited partnership" in subsection 5900(7) of the Income Tax Regulations (the "Regulations").
Answering the question that you have raised would require us to provide an opinion on the income tax consequences of an actual situation. Written confirmation of the consequences inherent in particular transactions are given by this directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R3. Where the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant tax services office. However, we are prepared to provide the following comments which are of a general nature.
Inter alia, the condition in paragraph (f) of the definition of "designated limited partnership" in subsection 5900(7) of the Regulations must be satisfied in order for a partnership to be a "designated limited partnership". It provides that : "the revenue from the principal activity is regulated by a public authority governed by the laws of Canada or a province."
In our view, the fact that a public authority governed by the laws of a province or Canada is empowered to regulate, but forebears from regulating in the absence of a complaint, does not satisfy the condition that "revenue ... is regulated..." [emphasis added].
The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R3, the above comments do not constitute an advance income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.
Yours truly,
Steve Tevlin
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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