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.
930204
XXXXXXXXXX M.P. Sarazin
(613) 957-2118
Attention: XXXXXXXXXX
February 4, 1993
Dear Sirs:
Re: Subsection 245(2) of the Income Tax Act (Canada) (the"Act")
This is in reply to your letter dated January 18, 1993 wherein you requested our comments regarding the possible application of subsections 56(2), 245(2) and section 246 of the Act to the situation described therein.
You would like to know whether the described series of transactions would be considered within the spirit and object of the Act for purposes of subsection 245(2) of the Act. In addition, you would like to know whether or not the provisions of section 246 or subsection 56(2) of the Act would apply to the series of transactions.
It appears that the interpretation you seek relates to a proposed transaction to be undertaken by a specific taxpayer and, therefore, we bring to your attention Information Circular 70-6R2 dated September 28, 1990 issued by Revenue Canada, Taxation. Confirmation with respect to proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. If you wish to obtain an advance income tax ruling for a particular taxpayer with respect to specific transactions which are contemplated, a written request for an advance income tax ruling can be submitted in accordance with the Information Circular.
We regret that without a review of all of the facts it would not be appropriate for us to provide any comments on the application of the anti-avoidance provisions of the Act to the series of transactions described in your letter.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Legislative 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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