Income Tax Severed Letters - 2008-08-08

Ruling

2008 Ruling 2008-0268041R3 - Purchase of Target and Bump

Unedited CRA Tags
88(1)(c) 88(1)(d) 87(11)

Principal Issues: Acquisition of control of a Target. Amalgamation of the Target with the parent, and bump of the cost of capital property (mainly shares of the capital stock of subsidiaries) held by the Target.

Position: Favourable opinion provided.

Reasons: In compliance with the law and a comfort letter issued by the Department of Finance.

2008 Ruling 2008-0275441R3 - Supplemental Ruling

Unedited CRA Tags
88(1)(c) 88(1)(d) 87(11)

Principal Issues: Modifications to the facts and proposed transactions brought to our attention.

Position: Confirmation that, subject to the conditions, limitations, qualifications, and comments set out therein, the modifications will not affect the opinions provided in Letter no. E 2008-026804R3.

Reasons: In compliance with the law and comfort letter issued by the Department of Finance.

Ministerial Correspondence

28 July 2008 Ministerial Correspondence 2008-0282091M4 F - Programme de retrait des permis de pêche

Unedited CRA Tags
38

Principales Questions: Certains pêcheurs réclament le remboursement de l'impôt sur le revenu payé sur les sommes reçues en vertu du programme de retrait des permis de pêche pour le poisson de fond de l'Atlantique.

Position Adoptée: Cet impôt est exigible et aucun remboursement n'est à faire, le cas échéant.

Raisons: Il s'agit d'un montant qui sera utilisé afin de calculer un gain en capital imposable provenant de la disposition des permis de pêche.

22 July 2008 Ministerial Correspondence 2008-0274651M4 - Atlantic Groundfish licence Buyback

Unedited CRA Tags
14 38 39

Principal Issues: The correspondent urged the Minister to re-consider the allegations of fishers that they improperly paid tax on the payments received from the Department of Fisheries and Oceans under the Atlantic Groundfish Licence Retirement Program.

Position: The correspondent was advised that the Tax Court of Canada has confirmed that the payments were taxable.