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.
Attached for your review are:
- 1. a copy of an enquiry letter from XXX dated August 24, 1989;
- 2. a copy of the opinion letter letter to XXX referred to in the the XXX
3. a draft response to the XXX enquiry in which we take the position that:
- (a) the tax position of the vendor is irrelevant in determining the fair market value of the property for the purposes of subsection 85(1) of the Act; and
- (b) the deferred tax liability of the vendor cannot be "assumed"' by the purchaser as a part of the consideration for the transferred property.
The position taken in our draft response is consistent with our published position in response to Question 53 at the 1981 CTF Revenue Canada Round Table but is inconsistent with the opinion letter to XXX dated January 27, 1982.
May we have your comments on the position we propose to take with respect to the impact of a deferred tax liability of the vendor on the determination of the fair market value of a property for the purposes of subsection 85(1) of the Act in the situation under 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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