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) |
File No. 5-8376 |
| |
K. Astaphan |
July 26, 1989
Dear Sirs:
Re: Subsection 15(1)
This letter is in response to your own of July 13, 1989 wherein you requested, inter alia, that the Department confirm that our position with respect to "single purpose corporations" holding personal use property remains as stated in the answer to Question 20 of the Conference Report of the 1980 Canadian Tax Foundation Annual Conference.
We confirm that the aforesaid position remains unchanged.
With respect to the other aspect of your letter the facts as described by you in your letter appear to describe an actual fact situation. The Department will not provide an opinion on a set of actual facts. However, we would provide a general comment that the Department would seek to assert that a benefit has been conferred on the individual parties mentioned in your letter if the rent paid by the individuals were less than the fair market value rental of the property. Moreover, the corporation would not be a single purpose corporation for the purposes of our answer to the above-mentioned 1980 Round Table question in that the third condition precedent to the availability of the treatment therein would not be satisfied.
Our response herein is provided subject to the general limitations and qualifications set out in Information Circular IC 70-6R, dated December 13, 1978.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch
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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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