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.
950977
XXXXXXXXXX Olli Laurikainen
(613) 957-2116
Attention: XXXXXXXXXX
July 26, 1995
Dear Sirs:
Re: Barbados Offshore Banking Act (the "BOBA")
This is in response to your letter dated April 7, 1995 wherein you request our view whether the activities of a foreign affiliate which are under the jurisdiction of the Barbadian Off-shore Banking Act are "regulated" for the purposes of section 95 of the Income Tax Act (the "Act") as amended by Bill C-70.
It is our opinion that where a foreign affiliate is licensed under the BOBA to carry on business activities defined under the BOBA as "offshore banking" such activities would be considered "regulated" in Barbados for the purposes of section 95 of the Act. However, we would caution that in order to qualify for the requirement under subparagraph (a)(i) of the definition of "investment business" in subsection 95(1), it must be established by the taxpayer or the affiliate that, throughout the period in the year during which the business was carried on by the affiliate, such regulated business was carried on principally in Barbados. Similar requirements are contained in paragraph 95(2)(l) and paragraphs 95(2.4)(a) and (b) of the Act.
We trust this is the information you require.
Yours truly,
Director
Reorganizations and Foreign Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1995
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