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.
PRAIRIE PROVINCES TAX CONFERENCE
DRAFT\EBAUCHE
MAY 19 & 20, 1992
QUESTION 18.
Do funds on deposit in NISA Fund No. 1 and NISA Fund No. 2 qualify as assets being used in a farming business for purposes of determining whether a corporation is a family farm corporation? To the best of our knowledge Revenue Canada has not made this determination as of this date. It is causing a number of clients concern as to whether they will lose their status or not.
ANSWER
The draft legislation on the NISA program was issued by the Minister of Finance on December 21, 1991. It proposes a new subsection 110.6(1.1) of the Income Tax Act, which provides that the fair market value of a producer's NISA account is considered to be nil for purposes of determining whether a share satisfies the definitions "qualified small business corporation share" or "share of the capital stock of a family farm corporation". In effect, the value of a NISA held by a corporation will not influence the determination of whether a particular share meets the criteria set out in those definitions.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1992
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1992
Email this Content