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.
E. Mikhail (613) 995-1787
NOV 10 1982
Dear Sirs:
This is in reply to your letter of September 10, 1982 in which you enquired about the definition of a Canadian-controlled private corporation contained in paragraph 125(6)(a) of the Income Tax Art.
As stated by you, paragraph 125(6)(a) defines a "Canadian-controlled private corporation" as "a private corporation that is a Canadian corporation other than a corporation controlled ... by one or more public corporations (other than a prescribed venture capital corporation) ...". However, a corporation controlled by a public corporation, whether or not that public corporation is a prescribed venture capital corporation, cannot be a "private corporation" by virtue of paragraph 89(1)(f). Therefore, it cannot be a "Canadian- controlled private corporation" within the meaning of paragraph 125(6)(a).
You asked whether Revenue Canada will interpret paragraphs 89(1)(i) and 125(6)(a) so as to make it possible that a corporation (which would otherwise be a private corporation) controlled by a prescribed venture capital corporation that is a public corporation, qualifies as a Canadian-controlled private corporation.
We confirm that under the circumstances as described by you, Revenue Canada's position is not to deny a corporation the status of a Canadian-controlled private corporation merely because it is controlled by a public corporation that is a prescribed venture capital corporation. This matter has been brought to the attention of Current Amendments for their consideration.
Yours truly,
ORIGINAL SIGNED BY ORIGINAL SIGNÉ PAR D.B. MORPHY
for Director Corporate Rulings Division Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1982
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© Sa Majesté la Reine du Chef du Canada, 1982
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