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.
| 24(1) |
5-902868 |
| |
A. Seidel |
| |
(613) 957-8960 |
19(1)
December 18, 1990
Dear Sirs:
This is in reply to your letter dated August 21, 1990 with respect to paragraph 130.1(6)(f) of the Income Tax Act (the "Act").
Subparagraph 130.1(6)(f)(i) of the Act requires that the cost amount of property of a mortgage investment corporation ("MIC") be invested in debts secured on "residential property" as defined in the Residential Mortgage Financing Act (the "RMFA"). Subsection 2(1) of the RMFA defines "residential property" as a house or the property included within a housing project. Subsection 2(2) of the RMFA states that "housing project" has the same meaning as in the National Housing Act (the "NHA").
The definition of "housing project" in the NHA does not specifically include retirement or nursing homes but includes "housing accommodation of the hostel or dormitory type". The NHA does not define hostel or dormitory. However, discussions with officials at Canada Mortgage and Housing Corporation confirmed that they include retirement and nursing hostel homes in the definition of housing project as type accommodation.
Accordingly, it is our view that retirement and nursing homes would qualify as residential property for the purposes of subparagraph 130.1(6)(f)(i) of the Act.
While we hope our comments are of assistance to you they do not constitute an advance income tax ruling and therefore are not binding on the Department in respect of a specific situation.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Sa Majesté la Reine du Chef du Canada, 1990
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