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.
XXXXXXXXXX 5-942455
Attention: XXXXXXXXXX
October 24, 1994
Dear Sirs:
Re: Definition of "Small Business Corporation"
This is in reply to your letter dated September 19, 1994, wherein you requested whether the answer given by this Department to question #51 of the Round Table held at the Canadian Tax Foundation's 1986 Annual Conference still holds if another partner is a public company. Paragraph 6 of Interpretation Bulletin IT-486R states that where a corporation has a partnership interest as one of its assets, it is the underlying partnership assets (to the extent of the corporation's interest therein) that are used in determining whether all or substantially all of the corporation's assets are used in an active business. This statement will continue to apply to a Canadian controlled private corporation that holds an interest in a partnership notwithstanding the fact that another partner of the partnership may be a public corporation.
The above opinion is not a ruling and, accordingly, it is not binding on this Department.
Yours truly.
for Acting Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Policy and Legislation Branch
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