10 October 1995 External T.I. 9526345 - OIL RIGHTS UPON DEATH

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.

952634
XXXXXXXXXX A.A. Cameron
(613) 957-8975
October 10, 1995

Dear XXXXXXXXXX:

Re: Rights relating to Production from an Oil Well

As requested during our recent telephone conversation concerning the above subject, enclosed for your information is a copy of Interpretation Bulletin IT-125R4 entitled "Dispositions of Resource Properties".

In particular, you may find the comments contained in the following paragraphs of the Bulletin to be of assistance:

Paragraph 1- concerning the definition of "Canadian resource property";

Paragraph 2- concerning the disposition of "Canadian resource property"; and

Paragraphs 15 through 18

- concerning the "deemed" disposition of "Canadian resource property" immediately before the death of a taxpayer.

As discussed during our telephone conversation, since your enquiry appears to involve "estate planning" considerations and we are only able to provide general comments concerning this subject, you may wish to consider obtaining assistance from a professional advisor with respect to your particular situation. In the meantime, if we can be of any further assistance or if you have any further questions concerning the above, please contact the writer.

Yours truly,

for Director
Manufacturing Industries, Partnerships
and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch

Enclosure