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.
Principal Issues: Whether the proposed loss consolidation arrangement within an affiliated group of corporations is acceptable?
Position: No
Reasons: Lossco does not have the borrowing capacity required to realize the loss consolidation arrangement. In that regard, it is our opinion that it is the borrowing capacity of the entity that actually suffered the losses, rather than the borrowing capacity of the affiliated group as a whole, that is relevant in the particular circumstances. Ruling withdrawn.
2007-025303
XXXXXXXXXX Sylvain Grégoire
(450) 926-7472
December 17, 2008
Dear Sir;
SUBJECT: Advance Income Tax Ruling Request
XXXXXXXXXX
This is to confirm that you have indicated in a telephone conversation of October 16, 2008 (XXXXXXXXXX /Bisson) that you are withdrawing your Advance Income Tax Ruling request dated September 19, 2007.
We understand that your client would not have the borrowing capacity required to realize a loss consolidation within an affiliated group. In that regard, it is our opinion that it is the borrowing capacity of the entity that actually suffered the losses, rather than the borrowing capacity of the affiliated group as a whole, that is relevant in the particular circumstances of your request.
We have closed our file concerning this matter. An invoice for the time spent on your Advance Income Tax Ruling request will be forwarded to you under separate cover.
Yours truly,
Maurice Bisson CGA.
Section Manager
Reorganization and Resources Section
Reorganization and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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