19 October 1990 External T.I. 52250 F - Grandfathering Provision - Section 19 Amendments

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.

19(1)

October 19, 1990

Dear Sirs:

Re:   24(1)

We are writing in response to your letter of August 20, 1990 concerning your request for an opinion as to whether a, particular arrangement would be considered an "acquisition" prior to July 13, 1990 for purposes of Article 14(3) of the July 13, 1990 Draft Amendments to the Income Tax Act and Related Statutes (the "Draft Amendments").

Our understanding of the relevant facts is as follows:

24(1)

4.     24(1)

5.     

Article 14(3) of the Draft Amendments states that certain amendments are applicable with respect to exclusive rights to publish and produce 'acquired' after the 'Announcement Date'. Supplementary Information issued with the Draft Amendments indicates that the expression 'Announcement Date' means July 13, 1990 and it is intended that this date will be used in place of this expression when formal legislation is introduced.

Provided that our understanding of the facts as described herein is correct, it is our opinion that an acquisition of rights to produce and publish issues of the  24(1)

The July 13, 1990 Draft Amendments to section 19 of the Act do not contain any accompanying grandfathering provisions which in our view would be necessary before any consideration of exemption from the proposals is possible. As discussed during a telephone conversation 19(1) Albert, queries concerning the possibility of grandfathering transactions which were substantially advanced at July 13, 1990 should be addressed to the Department of Finance.

Yours truly,

for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch