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: The taxpayer has described various scenarios and is requesting our comments in what appears to be tax planning.
Position: No comments provided as we do not offer tax planning advice.
Reasons: IC 70-6R5
XXXXXXXXXX
2012-045885
S. D’Angelo
August 21, 2012
Dear XXXXXXXXXX:
Re: Request for Comments – Corporate Structure
This is in response to your correspondence of August 15, 2012 wherein you asked for our views on the income tax implications pertaining to a particular business scenario.
Written confirmations of the tax implications inherent in particular transactions are provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, “Advance Income Tax Ruling”, dated May 17, 2002. This Information Circular and other CRA publications can be accessed on the internet at http://www.cra-arc.gc.ca/formspubs/menu-e.html. Where a particular transaction has already been completed, a review of the relevant facts and circumstances surrounding the situation would be required. Such review would normally be conducted by the applicable Tax Services Office during the course of an income tax audit which, if undertaken, would be carried out after the particular taxpayer has prepared and filed its income tax return for the year.
The situation described in your correspondence does not appear to involve or otherwise identify a particular interpretational concern with respect to a particular provision of the Income Tax Act and, in our view, appears to be in the nature of a request for general tax planning advice. The Canada Revenue Agency (“CRA”) does not offer tax planning advice and consequently we are unable to provide any comments regarding your business scenario. However, we would like to mention that the CRA’s website contains useful information that can help taxpayers find answers to how the law may be generally applied by the CRA. The following link also provides useful CRA contact information: http://www.cra-arc.gc.ca/cntct/phn-eng.html.
Yours truly
Michael Cooke
Manager
Capital Transactions Section
Business and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2012
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2012