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: Capitalization of Interest
We are writing in response to your letter of June 29, 1993 in which you requested our opinion with respect to the application of subsection 21(1) of the Income Tax Act (Canada)(the "Act").
In your letter, you outlined what appears to be an actual situation involving proposed transactions. Questions related to the tax consequences of proposed transactions should be the subject of an advance income tax ruling in accordance with the procedures outlined in Information Circular 70-6R2 ("IC-70-6R2") dated September 28, 1990 and Special Release to IC-70-6R2 dated September 30, 1992.
Our general position with respect to Section 21 of the Act is outlined in Interpretation Bulletin IT-121R3.
Yours truly,
for DirectorFinancial Industries DivisionRulings DirectorateLegislative 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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