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.
| |
August 15, 1989 |
| J.M. Legault, Director |
Technical Interpretations |
| Returns Processing Division |
Division |
| Assessing and Enquires Directorate |
S. Parnanzone |
| |
957-9232 |
| ATTN: D. Jones |
|
| |
File No. 7-4178 |
SUBJECT: FORM T700
This is in reply to Mr. D. Jones' T782 dated July 25, 1989.
Our review of form T700 was based on the provisions of the Saskatchewan Income Tax Act, as proposed to be amended by Bill 68 of 1989, and The Corporate Tax Reduction for New Small Business Regulations. We have ignored grammatical and typographical errors, language style and layout, unless they are believed to clearly result in incorrect or misleading unless they are believed to clearly result in incorrect or misleading information being given to taxpayers. Our comments are set out below.
1. The third note (bullet), while correct, is incomplete, since there are a variety of situations which result in a corporation being ineligible for the tax reduction. See section 7.1, and particularly subsection (6) thereof, of the Saskatchewan Income Tax Act and the related regulations (The Corporate Tax Reduction for New Small Business Regulations).
We note that, for purposes of the reduction, the concept of association is not restricted to relationships between corporations but also encompasses relationships between a corporation seeking the tax reduction and a "business", whether or not the business is carried on by a corporation.
2. Line (B). As discussed with D. Jones on August 14, 1989, the apportionment is not unambiguously supported by the wording of subsection 7.1(3), which simply refers to "the amount determined under clause 6(7)(b) for the taxation year". However, the apportionment may well be consistent with the intention of the Province, although we have not verified this.
A.G. CockellDirectorTechnical Interpretations DivisionLegislative and Intergovernmental Affairs Branch
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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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