15 October 1996 External T.I. 9631595 - sale of accounts receivable

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 a section 22 election can be made in certain specific situations.

Position:

Question of fact

Reasons:

The issues raised in the memo are not questions of interpretation but questions requesting tax advice.

									963159
XXXXXXXXXX							A. Seidel
(613) 957-8974

Attention: XXXXXXXXXX

October 15, 1996

Dear Sirs:

Re: Sale of Accounts Receivable

This is in reply to your letter dated September 17, 1996 requesting a technical interpretation with respect to a joint election pursuant to section 22 of the Income Tax Act (the "Act").

The situation described in your letter appears to relate to specific taxpayers (your reference to "Our client") and an actual fact situation (your reference to "USCo policy"). To the extent that you require assistance in determining the current tax status of the taxpayers involved, you should contact your local Tax Services Office. To the extent that you require confirmation of the tax consequences of proposed transactions, we bring to your attention Information Circular 70-6R2 ("IC 70-6R2") dated September 28, 1990 and the Special Release thereto dated September 30, 1992, issued by Revenue Canada. Confirmation with respect to proposed transactions involving specific taxpayers should be the subject of a request for an advance income tax ruling. If you wish to obtain an advance income tax ruling for particular taxpayers with respect to specific contemplated transactions, a written request for an advance income tax ruling should be submitted in accordance with IC 70-6R2.

Yours truly,

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