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.
| To: |
From: |
| Legislative Affairs Directorate |
Speciality Rulings |
| |
Directorate |
| |
F. Ahmed |
| |
957-2092 |
| |
Your File: F-3123 |
| B. Bryson, A/Director |
| Current Amendments and RegulationsDivision |
7-3857 |
Subject: Paragraph 149.1(3)(a) and Section 245 of the Income Tax Act
We refer to your memorandum of August 8, 1989 in response to ours of July 14, 1989 concerning the policy underlining paragraph 149.1(3)(a) of the Act. The request arose in the context of the potential application of GAAR to arrangements involving the use of trusts to avoid the related business restriction contained in paragraph 149.1(3)(a).
Our reason for requesting that you ascertain such policy was to enable us to provide the Charities Division of the Registration Directorate with some guidelines as to the types of trust arrangements which are acceptable from a policy perspective in order to assist them in advising taxpayers on such matters. While the Department of Finance's response deals with their views on the application of GAAR to the particular arrangement mentioned in our memorandum, it does not provide a description of the policy underlying paragraph 149.1(3)(a) of the Act.
Given this 21(1)(b)
Please call Firoz Ahmed with any questions or comments which you may have regarding this issue.
M.A. Hiltz for Director GeneralSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1990
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1990
Email this Content