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: Interpretation Bulletin IT-138R Treatment of "salaries"
In your letter dated June 24, 1993, you requested under what statutory or common law basis Revenue Canada relied in formulating its position regarding the treatment of "salaries" paid to partners as set out in paragraphs 10 and 11 of Interpretation Bulletin IT-138R. More specifically, you are concerned with the impact that "salaries" paid to partners have on the allocation of the partnership's income or loss. We apologize for the delay in responding to your request.
As we are presently in the process of revising Interpretation Bulletin IT-138R, we are not now in a position to respond to your general query. However, we will ensure that your concerns are brought to the attention of those who are redrafting the bulletin.
Should your question result from a completed transaction which is presently under review by an auditor of Revenue Canada, you may wish to ask the auditor to request an opinion fromRulings Directorate. With all relevant facts and documentation, we will be in a position to give a definite response to such a specific request.
However, if your question is part of a proposed transaction, as explained in Information Circular 70-6R2, you are best advised to seek a formal ruling, submitting a complete statement of facts and issues as well as copies of all relevant documents.
We trust that our comments will be of some assistance.
Yours truly,
for Director Manufacturing Industries, Partnerships and Trusts DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Mr. G. Keable Technical Publications Division
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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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