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.
Canco lends money to its wholly-owned foreign affiliate. On the repayment Canco realizes a foreign exchange less and the foreign affiliate was a capital gain. Application of 85(4) and treatment of gain and loss relating to foreign exchange.
- 1. 85(4) does not apply since Canco could be considered to have disposed of capital property to a corporation.
- 2. Loss by Canco accorded treatment of allowable capital loss
- 3. Capital gain of FA would be FAPI and no offsetting of loss against FAPI.
Position previously taken - refer to letter of February 6, 1981 in 95(1)(b) file.
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, 1982
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, 1982
Email this Content