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.
941053
XXXXXXXXXX L. Holloway
Attention: XXXXXXXXXX
August 17, 1994
Dear Sirs:
Re: Technical Interpretation of Subsection 70(6)
This is in reply to your letter of April 21, 1994 requesting a technical interpretation of subsection 70(6) of the Income Tax Act (the "Act") assuming the following.
The last will and testament of a taxpayer provides that the executors of his or her estate have the power to decide and determine, in their sole discretion, the type and value of property that is to be transferred to the taxpayer's spouse or a spouse trust.
You have asked if the Department would consider this to be a transfer as a consequence of the taxpayer's death as required by subsection 70(6) of the Act?
In our opinion, the fact that the executors use discretion in the distribution of the various assets would not, in and by itself deny the application of subsection 70(6). The assets would be received by the spouse or the spouse trust as a consequence of the death of the taxpayer where they are acquired under or as a consequence of the terms of the will as provided for in the expanded definition of "occurrences as a consequence of death" in subsection 248(8).
While we trust these comments will be of assistance, they do not constitute an advance income tax ruling and consequently, are not binding on Revenue Canada, Customs, Excise and Taxation.
Yours truly,
for Director
Manufacturing Industries, Partnerships and
Trusts Division
Rulings Directorate
Policy and Legislation Branch
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