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.
Dear Sirs:
We are writing in connection with your letter's of April 25, 1989 and June 9, 1989 and your telephone discussions with Kevin Donnelly on May 11, 1989 and June 19, 1989.
On May 11, 1989 we advised you by telephone that the Department was prepared to issue a ruling, either favourable or unfavourable, with respect to the application of subsection 16(3) and the issue of whether or not the discount on the issuance of a zero-coupon bond would be interest for purposes of the Act. This undertaking was given on condition the Department was provided with drafts of the actual documentation to be used with the debt issue. It was explained that this precise documentation was essential to our obtaining opinions from the Department of Justice and the Department of Finance.
Contrary to what was requested, your letter of June 9, 1989 provided us with "sample documentation" comprising XXX.
We wrote to you on December 16, 1988 in response to your letters of October 14, 1988 and November 4, 1988 concerning the application of subsection 16(3) to the discount on issuance of zero-coupon bond's. He advised in that letter that the issue was under review and we were unable to express what our future views might be on the application of subsection 16(3) of the Act. There has been no change from the position stated in our December 16, 1988 letter. Consequently we are not prepared to take any position except in the context of a ruling request and actual draft negotiated agreements. We understand that this documentation does not exist in the XXX request as the parties involved do not wish to incur documentation costs without first having a ruling. As such documentation is critical to our evaluation, we are unable to provide the rulings you have requested.
He are closing our file on your request and your deposit will be returned separately. If the parties decide to proceed and provide us with the necessary documentation we would be pleased to reopen the file and give it priority consideration.
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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