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 or not an amount can be computed for purposes of item B of the formula in section 8601 of the Income Tax Regulations when the formula interacts with Part IV of the Income Tax Regulations.
Position:
Yes
Reasons:
All permanent establishments in Canada of a corporation are considered to be in a province.
971855
XXXXXXXXXX Michèle Trotier
Attention: XXXXXXXXXX
July 11, 1997
Dear Sirs:
Re: Reference No. 951622
Single Purpose Corporation - Large Corporation Tax
This is a follow-up to a recent telephone conversation between Michèle Trotier of our Directorate and XXXXXXXXXX of your firm enquiring about the Part 1.3 tax implications with respect to a single purpose corporation.
We are attaching a copy of a technical interpretation given by our Directorate dated July 26, 1995 with our reference number 951622. We would note that in determining an amount under Part IV of the Income Tax Regulations for purposes of item B of the formula in section 8601 of the Income Tax Regulations all permanent establishments in Canada of a corporation are considered to be in a province.
We trust our comments will be of assistance to you.
Yours truly,
F. Lee Workman
Section Chief
Financial Institutions Section
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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