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. 5-8737 |
| |
S. Leung |
| |
(613) 957-2116 |
October 20, 1989
Dear Sirs:
Re: Paragraph 20(1)(e) of the Income Tax Act (the "Act")
We are writing in response to your letter of September 25, 1989 wherein you requested our view on whether expenses incurred by a corporation in the course of an issuance or sale of warrants of the corporation would be deductible pursuant to paragraph 20(1)(e) of the Act.
It is our opinion that such expenses would not be deductible under paragraph 20(1)(e) of the Act as warrants to acquire shares are not one of the qualified properties described in that paragraph. Warrants would normally be considered as rights to shares rather than shares themselves.
We trust these comments will be of assistance.
Yours truly,
for Director Reorganizations and Non-ResidentsSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs 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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