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.
XXXX A.A. Cameron (613) 957-2121
XXXX
August 22, 1986
Dear Sirs:
Re: Technical interpretation requested concerning subsection 111(5) of the Income Tax Act (the "Act")
We apologize for the delay in responding to you letter of May 16, 1986 in which you requested our interpretation of the above-mentioned provision of the Act in a situation where control of a corporation has changed in a taxation year and that corporation had available at that time a non- capital loss from a prior taxation year which had arisen due to a legitimate allowable business investment loss sustained in that prior taxation year.
In our opinion since paragraph 111(5)(a) of the Act refers to "such portion of the corporation's non-capital loss ... as may reasonably be regarded as its loss from carrying on a business ...", that provision could not apply to restrict the deductibility of any portion of a non-capital loss of a prior year which did not arise from carrying on a business.
We hope this information is of assistance to you
Yours truly,
for Director Reorganizations and Non-Resident Division. Specialty Rulings Directorate Legislative and Intergovernmental 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, 1986
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, 1986
Email this Content