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: Would Department's previous position on 85(1)(b) apply to transfers before 2001 if the 85(1) or (2) elections were filed in 2001
Position: Yes
Reasons: Transfers must take place before 2001 but elections to be filed may be in 2001, provided it is within the time limit in 85(6).
2001-007407
XXXXXXXXXX J. Teixeira
(613) 957-2095
March 19, 2001
Dear XXXXXXXXXX:
Re: Paragraph 85(1)(b) of the Act1
This is in reply to your letter of March 8, 2001 concerning the application of paragraph 85(1)(b) on the transfer of property to a corporation on a section 85 rollover. We confirm that the application of the provision, with respect to transfers after the year 2000, is as described in CCH Tax Topics No. 1511 dated February 22, 2001. An election for property transferred before the year 2001, where Revenue Canada's previous position with respect to paragraph 85(1)(b) applied, may be filed after the year 2000, provided that it is filed within the time limit referred to in subsection 85(6).
These comments are provided in accordance with the guidelines set out in paragraph 22 of Information Circular 70-6R4.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
ENDNOTES
1 "Act" means the Income Tax Act, R.S.C. 1985 (5th Supp.), c.1 as amended to the date hereof, and unless otherwise stated, every reference herein to a section, subsection or paragraph is a reference to the relevant provisions of the Act.
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