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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Additional comments on 2000-005892.
Position: No additional comments provided.
Reasons: No new information.
XXXXXXXXXX 2001-010142
November 26, 2001
Dear XXXXXXXXXX:
Re: Subsections 69(11) and 245(2)
We are writing in reply to your letter of September 14, 2001 wherein you requested additional details on our earlier technical interpretation issued to you (#2000-005892 dated May 31, 2000) regarding the application of subsection 69(11) of the Income Tax Act (the "Act") to the various circumstances described in your letter dated November 28, 2000. We note that your September 14, 2001 letter does not provide us with any additional information that was not considered by us in our earlier technical interpretation.
As you are undoubtedly aware, the determination of the proper application of subsection 69(11) or subsection 245(2) of the Act (the general anti-avoidance rule - "GAAR") depends on the relevant facts and circumstances of the particular situation, including information pertaining to the purpose(s) of the particular transactions or series of transactions undertaken by the particular taxpayers, which can only be done on a case by case basis. For these reasons, we have no additional comments to make on the various "hypothetical" situations described in your letter.
Should you have a situation that involves a proposed transaction with a specific taxpayer(s) we would be pleased to consider such a request provided the request is made in the form of an advance income tax ruling that is submitted in accordance with the guidelines set out in Information Circular 70-6R4 dated January 29, 2001. If, however, your request relates to a completed transaction involving a specific taxpayer(s) it should be made to your local Tax Services Office.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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