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:
Whether "Canadian subsidiary" in parag. 6 of IT-239R2 includes a corporation that is 33 1/3% owned by another corporation?
Position TAKEN:
A corporation (Corp A) is not a Canadian subsidiary of another corporation where the latter owns 33 1/3% of the common shares (only shares issued) of Corp. A.
Reasons FOR POSITION TAKEN:
IT-239R2 5-903156 5-6622
5-942515
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
December 6, 1994
Dear Sirs:
Re: IT-239R2
This is in reply to your letter of September 23, 1994 wherein you requested a technical interpretation concerning paragraph 6 of Interpretation Bulletin IT-239R2.
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. Where the particular transactions are completed, as in your case, the enquiry should be addressed to the relevant District Office. However, we can offer you the following general comments which may be of assistance to you.
It is the Department's position that for the purposes of paragraph 6 of Interpretation Bulletin IT-239R2, a corporation («Corp. A») is not a Canadian subsidiary of another corporation where the latter owns 33 1/3% of the common shares (only shares issued) of Corp. A.
The foregoing opinions are not rulings and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, are not binding on the Department.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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