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. 5-8881 |
| |
C. Robb |
| |
(613) 957-2744 |
October 26, 1989
19(1)
We are writing in response to your letter of October 5, 1989.
In our view your request should be addressed to your local District Taxation Office. However, we do offer the following comments. As a matter of general principle interest on a loan is deductible if it has been incurred for the purpose of earning income from a business or property. The decision in Bronfman 87 DTC 5059 (SCC) confirms our position that it is the direct use of the funds which is relevant to determining whether this test is met.
We trust these comments will be of use to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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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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