27 August 1990 External T.I. 9015865 F - Interpretation Bulletin IT-295R4

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 27, 1990

Dear Sirs:

Re:  IT 295R4

This is in reply to your letter of June 25, 1990, in which you requested our interpretation of a particular statement made in the above IT Bulletin.

We understand that your concern is with the last sentence in paragraph #1 which is as follows:

     "An election under subsection 82(3) is not applicable for dividends received by the spouse but deemed by the attribution rules (subsection 74(1) or 74.1(1) as the case may be) to be received by the taxpayer."

The election in question pertaining to dividends received, or deemed to be received, by the spouse of a taxpayer and requires that, if an election is made, it must pertain to all those dividends. If the dividends, which have already been attributed to the taxpayer, were not excluded from the election they would have to be included twice in his or her taxable income.  This would be contrary to the intent of the section.

We trust this will be of assistance.

Yours truly,

for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch

c.c.  Publications Division