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.
M. Vallée (613) 957-8982
XXXX
March 6, 1987
Dear Sir:
Re: Canadian M & P Profits/Investment Tax Credit
This is in reply to your letters of July 30, 1986 and October 2, 1986 and pursuant to our meeting of June 9, 1986.
We have thoroughly examined all the arguments and the documents you submitted to us concerning the eligibility of XXXX to the tax credit provided for in section 125.1 of the Income Tax Act (the "Act").
Pursuant to this study, we have reached the conclusion that the operations of the Service Center constitute the rendering of services and not the sale of parts. Consequently, the income derived from the activities of the Services Centre does not meet the requirements of the definition of "Canadian manufacturing and processing profits" set forth in paragraph 125.1(3)(a) of the Act and are not eligible to the tax credit provided for in section 125.1.of the Act.
We are advising our Montreal District Office accordingly.
Yours truly,
for Director Bilingual Services and Resource Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
c.c. Mr. Jacques Gougeon Section 142-6-5 Montreal District Taxation Office
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