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 loans from the Agence québécoise de valorisation industrielle de la recherche qualify as government assistance for purposes of subsections 13(7.1) and 127(9) of the Act.
Position TAKEN:
They qualify.
Reasons FOR POSITION TAKEN:
They are forgiveable loans.
October 20, 1995
Montreal Tax Services Office HEADQUARTERS
C. Chouinard
957-8953
Attention: Ebba Inez
7-952643
Government Assistance - AQVIR Loans
This is in response to your letter of October 5, 1995, wherein you asked us to confirm that loans received from the Agence québécoise de valorisation industrielle de la recherche ("AQVIR") qualify as government assistance for purposes of subsections 13(7.1) and 127(9) of the Income Tax Act (the "Act"), on the basis that they are "forgiveable loans".
As indicated during a telephone conversation (Chouinard/Inez) of September 14, 1995, the question of whether loans from the AQVIR qualify as "forgiveable loans" and therefore constitute government assistance has been considered by this Directorate and, as evidenced by the attached opinion, was answered in the affirmative.
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
Encl.
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© Her Majesty the Queen in Right of Canada, 1995
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