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) |
903395 |
| |
Glen Thornley |
| |
(613) 957-2101 |
19(1)
December 16, 1990
Dear Sirs:
Re: Sale of Property
This is in reply to your letter of November 5, 1990 which was referred to us from the Charities Division. We regret that our reply was delayed.
24(1) You then request our opinion on 4 related issues.
Our Comments
In accordance with Information Circular IC 70-6R2 written opinions are not given on proposed transactions as they are more properly the subject of an advance income tax ruling. Rulings request should be submitted in duplicate and must include copies in duplicate of all relevant documents. In your case this would involve as a minimum, 24(1) A copy of IC 70-6R2 is enclosed for your information. Please see paragraph 15 for details of the documents and information required to process an advance income tax ruling.
Although we are unable to give written opinions on your proposed transaction we are able to provide the following general comments. A recent legal opinion suggested that there is a reasonable argument that the assumption of a mortgage by a recipient foundation would constitute "consideration", being a benefit to the donor to the extent that he is relieved of responsibility for the debt. It is also possible that donated property could be included in the disbursement quota of the foundation, unless a specified gift designation were to be made.
We trust our comments will prove helpful.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Charities Division
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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