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.
XXXXXXXXXX 931877
Attention: XXXXXXXXXX
December 20, 1993
Dear Sirs:
Re: Subsection 105(1) of the Income Tax Act (the "Act")
This is in reply to your letter of June 23, 1993 concerning subsection 105(1) of the Act and loans made by a non-resident trust to Canadian beneficiaries thereof to acquire a house in Canada. We apologize for the delay in responding to your letter.
Your letter appears to relate to a proposed transaction and, consequently, should be the subject of an advance income tax ruling. Nevertheless, we offer the following general comments which may be of assistance to you.
In your letter you refer to the published statements of Revenue Canada, Customs, Excise and Taxation at both the 1990 and 1991 Canadian Tax Foundation Conferences. The conference statements acknowledge that the Department will apply the decision reached by the Federal Court—Trial Division in Cooper v. MNR ( 88 DTC 6525) in similar situations. In our opinion, the application of the decision in Cooper would not depend on whether the trust is or is not resident in Canada.
This opinion is provided in accordance with the comments in Information Circular 70-6R2. It is not an advance income tax ruling and, accordingly, it is not binding on the Department.
Yours truly,
for Director Manufacturing Industries, Partnerships and Trusts Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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