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 3-933465
Attention: XXXXXXXXXX
December 22, 1993
Dear Sirs/Madams:
Re: Request for Advance Income Tax Rulings
This is in reply to your request, dated November 16, 1993, for advance income tax rulings on behalf of XXXXXXXXXX
You ask us to confirm that the trust agreements you provided us with your letter dated November 16, 1993, will create testamentary trusts for purposes of the Income Tax Act. These trusts must be funded by the proceed of a life insurance policy of the Taxpayer which will only be payable upon and as a consequence of the death of the Taxpayer.
As stated in paragraph 14 c) of Information Circular 70-6R2 dated September 28, 1990, as amended by Special Release dated September 30, 1993, requests for advance income tax rulings may be refused where the transaction is to be completed at some indefinite future time.
Given that the Taxpayer's death may not occur in a foreseeable future, we do not know when the trusts will be created. Moreover, we cannot be sure that a trust will effectively be created because the beneficiary of the life insurance policy will be revocable at any time by the Taxpayer and there are too many conditions to be met. Therefore, we cannot provide favourable advance income tax rulings.
For a general discussion of our views on the proposed transactions, please refer to our letter dated February 4, 1993, copy of which was enclosed with your request.
Your deposit in the amount of $400 will be returned to you separately.
Yours truly,
Acting Director Manufacturing Industries, Partnerships and Trusts 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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