25 July 1997 External T.I. 9703045 - INTERCORPORATE MANAGEMENT FEES

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:

Is a deduction allowed where a management fee is refunded due to the application of section 67

Position:

Yes

Reasons:

Question 39 of 1986 RC Round Table

XXXXXXXXXX 970304

Attention: XXXXXXXXXX

July 25, 1997

Dear Sirs:

Re: Intercorporate Management Fees

In response to your letter of January 30, 1997, we confirm that the opinion expressed in our response to question 39 of the Revenue Canada Round Table at the 1986 Canadian Tax Conference is still valid.

We apologize for the delay in our response but 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