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.
Canadian Tax Foundation
Corporate Management Tax Conference
June 14, 1996
Question 15 - Related Person Test in Paragraph 55(3)(a)
Can Revenue Canada clarify the point in time when the related person test in paragraph 55(3)(a) should be determined:
a) when property is disposed of,
b) throughout the series of transactions in question, or
c) at the end of the series of transactions in question?
Department's Response
It is our view that the test should be applied at the time of the relevant disposition of property or increase in interest that is referred to in paragraph 55(3)(a).
Author: Mark Symes
File: 5-962076
Date: June 14, 1996
ENDNOTES
1.It should be noted that on June 20, 1996, after this forum was held, the Minister of Finance tabled in the House of Commons a Notice of Ways and Means Motion which included a proposed amendment to paragraph 55(3)(a). This amendment would, inter alia, set out explicitly the time at which the unrelated tests in amended paragraph 55(3)(a) are to be applied.
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