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 joint elections pursuant to subsection 16.1 of the Act be made by a lessee and a partnership as lessor.
Position:
Yes, provided the election would otherwise be valid.
Reasons:
XXXXXXXXXX 970863
Attention: XXXXXXXXXX
June 12, 1997
Dear Sirs:
Re: Section 16.1 of the Income Tax Act Elections
This is in reply to your facsimile of March 27, 1997 in which you request written confirmation of the Department's position on how section 16.1 of the Income Tax Act (the "Act") applies to Canadian partnerships.
Subsection 16.1 of the Act provides for an election to be signed by a lessor and a lessee where a lessee has leased certain property from a "person" resident in Canada and with whom they are dealing at arm's length. In our opinion, joint elections may be made pursuant to subsection 16.1 of the Act by a lessee and a partnership as lessor, where the election would otherwise be valid.
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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