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:
Can ATR 66 be relied upon?
Position:
Yes, if facts are similar
Reasons:
Only one person takes the loss
970327
XXXXXXXXXX C. Tremblay
Attention: XXXXXXXXXX
March 25, 1997
Dear Sirs:
Re: Non-arm's Length transfer of debt followed by winding-up and sale of shares
This is in reply to your letter of February 6, 1997, wherein you request our opinion on the application of section 80 based on hypothetical facts given.
Although you have asked us to confirm your views on the hypothetical situation described, the situation that is described appears to involve a series of proposed transactions involving specific taxpayers; consequently, your enquiry should be the subject of an advance income tax ruling. Although we are unable to provide any opinion in respect of the specific transactions described in your letter, we can confirm that ATR - 66, which deals with non-arm's length transfer of shares followed by a winding-up and sale of shares, can be relied upon if the facts are identical to the proposed transactions, however, similar transactions often have different facts. If there is any doubt as to the similarity of the proposed transactions, you should request an advance ruling.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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