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:
Securities Lending Arrangement and whether these rules apply to a partnership
Position:
The rules in section 260 do not apply to a partnership
Reasons:
A partnership is not a "person" or a "taxpayer" for purposes of section 260 of the Act
XXXXXXXXXX 963814
Attention: XXXXXXXXXX
November 26, 1996
Dear Sirs:
Re: Securities Lending
This is in reply to your letter of November 11, 1996 in which you request a technical interpretation with respect to the rules contained in section 260 of the Income Tax Act (the "Act") and whether these rules apply to partnerships.
The situation described in your letter is an actual fact situation and written confirmation of the tax implications inherent in proposed transactions are given by this Directorate only where the transactions are the subject of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. Where a completed transaction is involved, the enquiry should be addressed to your local District Tax Services Office. Consequently, we can only offer the following general comments.
In our view, a partnership is not to be considered a "person" or a "taxpayer" for the purposes of section 260 of the Act and its partners would not be accorded the treatment provided for in section 260 of the Act.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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