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.
| |
920776 |
| 19(1) |
R.B. Day |
| |
(613) 957-2136 |
May 5, 1992
Dear 19(1)
We are writing in reply to your letter of March 10 1992, wherein you requested our views as to whether or not discounted services provided to employees would be considered to be analogous to merchandise discounts as discussed in paragraph 27 of Interpretation Bulletin IT-470R.
Since the situation described in your letter appears to relate to an actual taxpayer and a proposed transaction, that would normally be considered by way of an advance income tax ruling request, we are unable to comment on the specifics of your situation. However, it is our view that the administrative position set out in paragraph 27 to IT-470R applies only to discounts on tangible property that could be considered as merchandise as that term is ordinarily understood. As a consequence, it is our opinion that the comments in paragraph 27 of IT-470R would not apply to the discounted services described in your letter.
We trust our comments will be of assistance to you.
Yours truly,
J.A. Szeszyckifor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. P. McNallyActing Director GeneralClient Assistance Directorate
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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