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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Non-resident-owned Investment Corporation ("NRO")
This is in reply to your letter dated December 8, 1992 concerning the definition of the term "NRO" in paragraph 133(8)(d) of the Income Tax Act (the "Act"). You question whether a corporation incorporated after June 18, 1971, which complies with the conditions set out in subparagraphs 133(8)(d)(i)-(vi), is a NRO during the period after its incorporation and before the election referred to in subparagraph 133(8)(d)(v) of the Act is made.
In our view, the election is retroactive in its effect. That is, provided all the conditions in subparagraphs 133(8)(d)(i)-(vi) of the Act are met, the corporation would be a NRO effective the date of its incorporation, not the date the election is made. Accordingly, the provisions of section 133 of the Act would apply throughout each taxation year of the corporation commencing on or after the date of incorporation.
We trust this is the information you require.
Yours Truly,
for DirectorRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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