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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
5-930714
XXXXXXXXXX Marc Ton-That
(613) 957-2093
Attention: XXXXXXXXXX
May 4, 1993
Dear Sirs:
Re: Interpretation Bulletin IT-315
This is in reply to your letter of March 3, 1993 wherein you requested our view regarding the application of the administrative policy in Interpretation Bulletin IT-315 to a situation where the acquisition of shares of a corporation is wholly or partly financed by an unpaid portion of the purchase price bearing interest.
It is our view that the policy in IT-315 is applicable to interest on loans incurred by a taxpayer to acquire shares as well as to interest on an unpaid portion of the purchase price of the shares.
We trust the above comment will be of assistance.
As stated in paragraph 21 of Information Circular 70-6R2 dated September 28, l990, the opinions expressed in this letter are not rulings and are consequently not binding on the Department.
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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