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.
Dear Sirs:
We are writing in response to your letter dated October 29, 1990 wherein you requested a technical interpretation concerning the application of various sections of the Income Tax Act (Canada) (the "Act") to the following situation.
Facts
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- 2. XXX
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- 4. XXX
You have requested that we confirm the following:
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- 2. XXX
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- 4. XXX
It appears that the interpretation you seek relates to specific taxpayers and therefore, we bring to your attention Information Circular 70-6R2 dated September 28, 1990 issued by Revenue Canada, Taxation. Confirmation with respect to proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. If you wish to obtain an advance income tax ruling for a particular taxpayer with respect to specific transactions which are contemplated, a written request for an advance income tax ruling should be submitted in accordance with the Information Circular. Nevertheless, we can offer the following general comments.
Where a person is a shareholder of a particular corporation and the person has received a loan from the corporation or any other corporation related thereto, the loan would be subject to the provisions of subsection 15(2) unless the loan qualifies for any of the exemptions available in subparagraphs 15(2)(a)(i) to (iv) of the Act.
The Department's views on designations made pursuant to subsections 104(19) and 104(21) of the Act, are, stated in Interpretation Bulletin IT-372R and Interpretation Bulletin IT-381R, respectively.
No tax is payable under paragraph 186(1)(a) of the Act provided that a payer corporation is connected with the corporation receiving the dividend. Notwithstanding that a designation may be made under subsection 104(19) of the Act, it is the Department's view that a corporate beneficiary of a trust would not be considered to own any shares of the payer corporation for purposes of considering whether it is connected under the provisions of paragraph 186(4)(b) of the Act.
The foregoing comments are provided in accordance with the practice referred to in paragraph 24 of Information Circular 70-6R2.
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
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