23 October 1981 Income Tax Severed Letter 7-1871 - []

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.

OCT 23 1981

XXXX

ATTENTION Brian Douglas Enquiries and Office Exam

FROM_DE Specialty Rulings Directorate Farms, Personal and General Section N.M. Sheerin (613)957-2135 RE: XXXX Whether loan received in 1981 was "housing loan"

This is in reply to your memorandum of June 10, 1987 in which you requested a determination as to whether a loan of $6,823.22, which the taxpayer received from his employer in 1981, qualifies as a "housing loan" within the meaning of paragraph 80.4(2)(b) of the Act as it applied to the 1981 taxation near.

XXXX

The employer did not consider that this secondary interest-free loan formed part of the taxpayer's "housing loan" and during the relevant years a benefit under subsection 80.4(1) was reported. The taxpayer, on the other hand, clams that the loan of XXXX satisfies the definition of "housing loan" in subparagraph 80.4(2)(b), as it applied to the 1981 taxation year, since, in one sense, it was made "to enable or assist him ... to acquire a dwelling for his habitation."

The issue raised in this case does not appear to have been previously considered by either the Department or the courts. Interpretation Bulletin IT-119R3 , para. 17 (referring to subsec. 15(2)) states that whether a loan has been made to "enable or assist" the borrower to acquire a dwelling is a question of fact.

While the matter is not free from doubt, in our opinion the taxpayer has reasonable grounds for his interpretation. In the circumstance, we would have no objection if you decided to allow his claim.

ORIGINAL SIGNED BY ORIGINAL SIGNÉ PAR ROBERT H. JOYCE

for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch