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: Charitable corp - disposition of shares
Position: referred to IT-83R3 and IT-496
Reasons: see letter
XXXXXXXXXX 981619
M. Baldwin
Dear XXXXXXXXXX
re: Charitable Corporation - Disposition of Shares
This is with respect to your letter received by us on June 19, 1998 concerning the above. As we discussed by telephone (XXXXXXXXXX/Baldwin), we are not able to provide you with an interpretation as to whether a disposition of shares would give rise to a taxable capital gain since such a determination is a question of fact. However, we can confirm that generally registered charities as defined in paragraph 149(1)(f) of the Income Tax Act, and, subject to subsection 149(5) of the Act, non-profit organizations as defined in paragraph 149(1)(l) of the Act are not subject to tax on their incomes.
We have enclosed copies of Interpretation Bulletins IT-83R3 and IT-496 which discuss the Department’s views on these matters and trust they will be of assistance to you.
Yours truly
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Division
Policy and Legislation Branch
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