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:
This is in response to your letter of June 2, 1989. Your enquiry concerns the determination of earnings of a foreign affiliate for the purposes of clause 5907(1)(a)(i)(A) of the Regulations to the Income Tax Act (the "Regulations"), where the affiliate is resident In the United States and is subject to an alternative minimum tax ("AMT") in that country. Specifically, you have requested our view whether, in a particular year where the AMT is applicable, the income or profit referred to in clause 5907(1)(a)(i)(A) of the Regulations would be the alternative minimum taxable income for that year.
It is our understanding that U.S. alternative minimum taxable income is regular taxable Income after it has been increased by tax preference items and adjustments have been made to other tax items. As such, it is our view that the alternative minimum taxable income is not a taxpayer's income or profit from its active business carried on in the U.S. within the meaning of clause 5907(1)(a)(i)(A) of the Regulations, but instead is a computation of notional income upon which a creditable tax may be imposed. Finally, we note that certain items that would be adjusted in computing alternative minimum tax may fall within subsections 5907(2) or (2.1) of the Regulations.
We trust that this is the information you require.
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© Her Majesty the Queen in Right of Canada, 1989
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, 1989
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