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.
Principales Questions:
n\a
Position Adoptée:
no answer because the request does not imply an interpretation
Raisons POUR POSITION ADOPTÉE:
n\a
XXXXXXXXXX 5-940740
Attention: XXXXXXXXXX
November 1, 2018
Dear Sirs,
Re: Tax-exempt bonds
We are writing in response to your letter dated March 11, 1994, wherein you requested information on the subject of tax-exempt bonds. More specifically, we understand from your letter that you are seeking to find out if tax-exempt bonds can be created for issuance to the general public, and under what conditions (stipulations, requirements etc...).
In the alternative, you ask if it is possible for Canadians to gain the status of "Non-Resident" or equivalent in order to qualify for a maximum rate of 25%.
Unfortunately, we must inform you that we are not able to assist you. Our Directorate provides interpretations on the general application of the Income Tax Act (the "Act"), but does not generally endeavour to provide information of the type you require, which appears to be of a tax planning nature.
You may wish to consider the services of professional tax consultants. However, there does not appear to be anything in the Act that would be of immediate assistance to you. The Act provides favourable tax treatment to corporate holders of small business development bonds, small business bonds and income bonds. These special bonds are defined in the Act in section 15.1, section 15.2 and section 248 as bonds issued by taxpayers experiencing financial difficulty. Generally, the purchasers are financial institutions. In the circumstances, these would not appear to be of any great interest to you.
We regret that we could not be of more assistance.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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