11 July 1995 External T.I. 9419645 - TAXABLE CANADIAN PROPERTY FOR CANADIAN RESIDENT

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.

			5-941964
XXXXXXXXXX		Marc Ton-That

Attention: XXXXXXXXXX

July 11, 1995

Dear Sirs:

Re: Taxable Canadian property

This is in reply to your letters of July 27, 1994 and January 16, 1995 wherein you requested our opinion on whether a taxpayer resident in Canada can be viewed as having disposed of a "taxable Canadian property", as defined in subsection 248(1) of the Income Tax Act (the "Act"), for purposes of determining whether the consideration received would be deemed to be "taxable Canadian property" as provided in paragraph 85(1)(i), paragraph 85.1(1)(a) or subsection 87(4) of the Act.

The Department's current position is that paragraph 85(1)(i), paragraph 85.1(1)(a) and subsection 87(4) are intended to apply to both resident and non-resident taxpayers and, therefore, a taxpayer resident in Canada can be viewed as having disposed of a "taxable Canadian property" for the purposes of the deeming rules of such provisions.

We trust the above comments will be of assistance.

As stated in paragraph 21 of Information Circular 70-6R2 dated September 28, l990, the opinions expressed in this letter are not rulings and are consequently not binding on the Department.

Yours truly,

for Director
Reorganizations and Foreign Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch