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.
3-910089
Dear Sirs:
Re; 19(1) 24(1)
Advance Income Tax ruling
This is further to your letters of December 31, 1990 and April 22, 1991 in respect to the above noted advance income tax ruling request.
24(1) Paragraph 6 of the Department's Information Circular IC 70-6R2, dated September 28, 1990, states that an advance ruling can not be provided on transactions that are already completed or on series of transactions that are significantly advanced. Accordingly, we are no longer able to provide you with your requested rulings.
While we can not provide you with an advance income tax ruling we would like to note that, in general, a beneficiary of an estate can disclaim an interest in an estate or a part thereof and that, when such an interest or part interest is so disclaimed, it will fall to the estate residue and will be available for distribution to other beneficiaries of the estate in accordance with the applicable provincial intestate succession laws. A beneficiary of an intestate may also disclaim his or her interests in the residue of the estate created in this manner.
To be valid for purposes of the Income Tax Act, a disclaimer must not be made in favour of any person or the disclaimer will be considered to be a disposition of the disclaiming beneficiary's interest in the estate. A disposition not at arms length would be considered to occur at the fair market value of the interest.
Disclaimers are more fully discussed in the Department's Interpretation Bulletin IT-385R a copy of which is enclosed.
We can not provide you with any comments as to whether or not a disclaimer made at this time would validate a transfer made at a previous date.
We regret that our reply could not be more favourable but trust that you understand our position in these matters.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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