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: CCPC Status of a Corporation Owned by a Trust
This is in reply to your letter of January 14, 1993, in which you request an advance income tax ruling on the above-noted topic.
As advised in an earlier telephone conversation (Major/XXXXXXXXXX), we regret that an advance income tax ruling can not be given. We generally do not issue advance rulings where a matter on which a determination is requested is primarily one of fact and the circumstances are such that all the pertinent facts cannot be established at the time of the request for the advance ruling. In this case the residence status of the trust is very much at issue with respect to the advance rulings requested and we are not prepared to rule on such status.
With respect to your request for our comments on the application of paragraph 251(5)(b) of the Income Tax Act (i.e. whether the non- resident beneficiaries have an absolute or contingent right to the shares) based on the draft Will submitted, no comments are forthcoming.
Again, all the pertinent facts in such a case (e.g. codicils, renunciations by trustees, contestation of the Will, etc.) cannot be established until the probate of the Will.
If you have any questions please feel free to contact the writer at 957-2123 or Ken Major at 957-2124.
Yours truly.
for DirectorReorganizations and Foreign DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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, 1993
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, 1993