14 January 1997 External T.I. 9635185 - CANADIAN NEWSPAPER OR PERIODICAL

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) a particular newspaper qualifies as a "Canadian issue" of a "Canadian newspaper or periodical" as defined in ss. 19(5); and (b) whether ss. 19(8) applies to the arrangement.

Position:

Should request an advance ruling (although it is uncertain whether we can rule on ss. 19(8)).

Reasons:

Specific facts, taxpayers and proposals are involved.

963518
XXXXXXXXXX B.G. Dodd
(613) 957-8953

Attention: XXXXXXXXXX

January 14, 1997

Dear Sirs:

Re: Section 19 of the Income Tax Act

We are writing in connection with your letter dated October 22, 1996.

As discussed, in view of the fact that the subject matter of your letter involves specific factual aspects and proposals relating to particular taxpayers, it would be more appropriate to deal with the income tax implications by way of a request for an advance income tax ruling as described in Information Circular 70-6R3. At the same time, we would note in connection with your concern regarding subsection 19(8) of the Act that the application of this provision is a question of fact on which it may not be possible to predetermine all of the relevant facts. As such, it may be difficult for the Department to comment definitively in an advance ruling.

Yours truly,

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