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 ISSUE:
Whether the years in which an employee was employed by a foreign subsidiary may be included in determining the number of years of service for the purpose of subparagraph 60(j.1)(A) of the Act?
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
7-4319 and 70988/802
5-942384
XXXXXXXXXX L. Roy
Attention: XXXXXXXXXX
November 2, 1994
Dear Sir\Madam:
Re: Paragraph 60(j.1) of the Income Tax Act
This is in reply to your letter of September 14, 1994 in which you requested our opinion on the application of clause 60(j.1)(ii)(A) of the Income Tax Act (the "Act").
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R2, dated September 28, 1990. Where the particular transactions are completed, the enquiry should be addressed to the relevant district taxation office. The following comments are, therefore, of a general nature only, and are not binding on the Department.
For the purpose of clause 60(j.1)(ii)(A), the number of years of employment includes years with the employer paying the retiring allowance and years of employment with a "person related to the employer" as defined in section 251 and subparagraphs 60(j.1)(iv) and (v) of the Act, whether that related person was resident or not.
We trust the above comments will be of assistance to you. If you have any questions do not hesitate to contact us.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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