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: Deductibility of Player Rights, XXXXXXXXXX
This is in reply to your letter of June 25, 1993 requesting confirmation of the position taken in the November 18, 1991 interpretation regarding the deductibility of consideration paid for player rights as commented upon in the published article, copy submitted.
There has been no change in our position as set out in the interpretation which reads,
"It is our view that the portion of the fee as may reasonably be considered to relate to the cost of Player Rights will be deductible in computing the income of the partnership for purposes of section 9 of the Act.
For purposes of section 9 of the Act the cost of the Player Rights may be deducted annually by the partnership on an amortized basis in computing its income. In making the amortization computations, the cost of the Player Rights may be amortized over the average remaining term of the player contracts acquired by the Partnership."
We trust that you will find this information helpful.
Yours truly,
R. Albert for DirectorBusiness and General 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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