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: who gets LSVCC tax credit
Position TAKEN: The contributor
REASON FOR POSITION: law
XXXXXXXXXX 5-952358
Attention: XXXXXXXXXX
September 28, 1995
Dear Sirs:
Re: Labour Sponsored Fund Tax Credit
This is in reply to your letter of August 31, 1995, wherein you requested clarification of the statement in our letter of July 6, 1995, that only the individual who makes the contributions used by a qualifying trust to acquire approved shares of a labour sponsored venture capital corporation (an "LSVCC") is entitled to deduct the tax credit under subsection 127.4(2) of the Income Tax Act (the "Act").
As stated, it is only the individual who has made the contribution who may receive the credit and the provisions of subsection 146(8.3) of the Act, often referred to as the "attribution rules", do not have any application thereto.
We trust this clarification is satisfactory to your needs.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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