21 November 1989 Ruling 58913 F - Charity

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.

November 21, 1989

19(1)

We are writing in reply to your letter of July 12, 1989, and further to your follow-up letter of October 2, 1989, wherein you requested our views regarding the application of section 149.1 of the Income Tax Act where a Charitable organization and /or registered charity (the "registered entity") is a fifty percent partner in a marketing venture in Canada.

24(1)

You have posed the following questions with regard to the above- noted registered entity.

24(1)

Our Comments

Interpretation Bulletin IT-90 defines, in paragraph 2 thereof, a partnership as

     "the relation that subsists between persons carrying on business in common with a view to profit."

24(1)

In response to your specific questions, there is no specific provision in the Act that sets out guidelines regarding qualified investments for a charitable organization or a public foundation. Paragraph 149.1(1)(e.1) does, however, define a "non-qualified investment" for a private foundation.

24(1)

We apologize for the long delay in replying to your enquiry.

Yours truly,

for DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch