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: Does the new entity referred to in 69(14) a reference only to the transferor in 69(11) or to the transferor and the persons referred to therein who have deductions available to them?
Position: It refers to the transferor and the persons who have deductions available to them.
Reasons: An appropriate interpretation and reading of 69(14).
XXXXXXXXXX 2002-015667
Marc Edelson
February 20, 2003
Dear XXXXXXXXXX:
Re: Technical Interpretation Request: Deemed Proceeds of Disposition and Subsections 69(11) and (14)
We are writing in reply to your letter of August 12, 2002 wherein you requested our opinion whether the "taxpayer" referred to in subsection 69(14) of the Income Tax Act (Canada) (all further statutory references in this letter are to that Act unless otherwise stated) is a reference only to the transferor referred to in subsection 69(11) or to the transferor and to each other person referred to in the wording contained in parentheses at the conclusion of paragraph 69(11)(a).
You have submitted that the interpretation to be given subsection 69(14) should be the latter interpretation referred to above.
Your requests appear to relate to proposed transactions or completed transactions. Confirmation of the income tax consequences of proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. To make such a request the advance income tax ruling must be submitted in accordance with the guidelines set out in Information Circular 70-6R5 ("IC-70-6R5") dated May 17, 2002. However, if the situation relates to a completed transaction a request for the Canada Customs and Revenue Agency's views must be made to your local Tax Services Office. We can, however, provide the following general comments.
We agree with your view that the "taxpayer" referred to in subsection 69(14) would include both the taxpayer that is the transferor in subsection 69(11), as well as each other person referred to in the wording contained in parentheses at the conclusion of paragraph 69(11)(a).
Our comments are provided in accordance with the practice outlined in paragraph 22 of IC-70-6R5.
Yours truly,
for Director
International and Trust Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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