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.
5-912358
Dear Sirs:
Re: Our letter of August 23, 1991 (the "Letter")
24(1)
We are writing in response to your request of August 26, 1991 that we reconsider our reply to question #3 as described in the Letter:
24(1)
Comments
24(1)
it was our position that paragraph 85(1)(e.2) of the Act would be applicable.
Although, as described in subparagraph 14(f) of Information Circular 70-6R2 dated September 28, 1990 issued by Revenue Canada, Taxation ("IC 70-6R2"), we are unable to provide any comments on the determination of fair market value, it is our view that the fair market value of the preferred shares may be maintained if the outstanding balance was charged an interest rate which reflected fair market value.
The comments expressed are not advance income tax rulings and are not considered binding on the Department, in respect of any taxpayer, in accordance with paragraph 21 of IC 70-6R2
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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