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 services of "other individuals" within meaning of clauses 206(1.1)(d)(iii)(C) & (D) can include services of a type not normally provided by employees.
Position:
Yes.
Reasons:
Words can be interpreted so as not to restrict the word "services" by the word "employees" - nothing in purpose of legislation requires a more restrictive interpretation.
XXXXXXXXXX 963382A
Attention: XXXXXXXXXX
October 15, 1996
Dear XXXXXXXXXX:
Re: Draft Amendments to Section 206
Contained in June 20, 1996
Notice of Ways and Means Motion
This is further to our facsimile transmission of October 11, 1996, and further to a telephone conversation (XXXXXXXXXX and David Duff of our office) of the same date. XXXXXXXXXX asks us to confirm that the "services" of other individuals as used in clauses 206(1.1)(d)(iii)(C) and (D) as proposed to be added by the above-noted draft legislation includes services of a type not normally provided by employees.
With respect to the types of services for which expenses may be incurred to meet the test in either of proposed clause 206(1.1)(d)(iii)(C) or (D) we confirm that in our opinion the services provided by "other individuals" need not be of the kind which are normally provided by employees.
We trust this information assists. Please note that these comments are not binding on the Department.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1996
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© Sa Majesté la Reine du Chef du Canada, 1996
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