23 April 1990 Ruling 50301 F - Tax Shelter Reporting

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.

April 23, 1990

Dear Sirs:

Re:  Section 237.1 Tax Shelter Reporting

We are writing in reply to your request of April 5, 1990 and is supplementary to our opinion number 5-9429 dated March 29, 1990.

You have requested a technical interpretation as to whether the reference to a tax shelter in subsections 237.1(4) and 237.1(6) could include a tax shelter for which there has been no promoter.

In view of the scheme of the section, the Department considers that the provision in subsection 237.1(4) for the prohibition of sales of an interest in a tax shelter before it has a tax shelter identification number and the provision in subsection 237.1(6) for the disallowance of deductions claimed by a taxpayer in respect of an interest in a tax shelter unless the taxpayers provides the tax shelter identification number only apply to tax shelters in respect of which a promoter has been required, by the provisions of subsection 237.1(1) and our discussion thereof in paragraph 3 of IC 89-4 indicates concern for investments the disposition of which is actively sought and that the likelihood of an investment being a tax shelter without a promoter is minimal.

We trust that these comments will be of assistance.

Yours truly,

for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch