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.
ISSUE SHEET
24(1)
PROTECTED
Issue
24(1)
Response
THE CONFIDENTIALITY PROVISIONS OF SECTION 241 PREVENT ANY COMMENT ON A PARTICULAR ARRANGEMENT. HOWEVER RULING REQUESTS RECEIVED IN THIS AREA ARE SUBJECTED TO CLOSE SCRUTINY TO ENSURE THAT THE EXEMPTING PROVISIONS IN THE SECTION ARE SATISFIED BEFORE FAVOURABLE RULINGS ARE ISSUED. IF ANY PARTICULAR TRANSACTION IS THOUGHT NOT TO BE IN ACCORD WITH THE INTENT OF THE LEGISLATION THE DEPARTMENT'S CONCERNS ARE MADE KNOWN TO THE APPROPRIATE OFFICIALS AT THE DEPARTMENT OF FINANCE FOR CONSIDERATION OF CORRECTIVE AMENDMENTS. THE APPLICATION OF ANTI-AVOIDANCE RULES ARE CONSIDERED BY OUR AUDIT STAFF AND APPLIED IN APPROPRIATE CASES.
Background
Section 19 of the Act prohibits the deduction of expenses for advertising in non-Canadian newspapers where the advertising is directed primarily at a Canadian market. One of the requirements of the definition of a Canadian newspaper is that an exclusive right to produce and publish is held by a citizen of Canada or a corporation whose share capital is 75% owned by Canadian citizens or corporations not controlled by foreign subjects.
24(1) All structures ruled upon to date have met the principles agreed upon by Revenue Canada and the Department of Finance.
| For Further Information: |
| Name: Ray Thompson |
Approved by ADM_______ |
| Phone #: 957-2099 |
July 16, 1990
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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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