11 October 1994 External T.I. 9421345 - DATE OF ACQUISITION

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.

Principal Issues:

When does a disposition of property occur.

Position TAKEN:

Question of fact and law. Generally the date of disposition is the date on which beneficial ownership passes to the purchaser.

Reasons FOR POSITION TAKEN:

54(c)

			5-942134
XXXXXXXXXX	M.Shea-DesRosiers

Attention: XXXXXXXXXX

October 11, 1994

Dear Sir/Madam:

Re: Date of acquisition

This is in reply to your fax of August 17, 1994 concerning the above-mentioned subject.

The situation outlined in your fax appears to relate to actual proposed transactions involving identifiable taxpayers. Confirmation as to the income tax consequences of proposed transactions can only be given in the context of an advance income tax ruling. Where the particular transactions are completed, the enquiry should be addressed to the relevant district taxation office. However, we can offer the following general comments.

The question as to when disposition of property occurs is one of facts and law which can only be determined when all relevant facts are known and with reference to the terms of an agreement or the pertinent documents. However, generally the date of disposition of property is the date on which the beneficial ownership passes to the purchaser and the vendor has an absolute but not necessarily immediate right to be paid.

In accordance with paragraph 21 of Information Circular 70-6R2, dated September 28, 1990, the comments expressed herein do not constitute an advance income tax ruling and may or may not apply to the circumstances of a particular case and consequently are not binding on the Department. However, we trust they will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch