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: Supplementary ruling-new ruling on subsection 40(1) added.
Position: Ruling E on page 4 of our letter of XXXXXXXXXX, 1999 (3-982447) was extended to include a reference to subsection 40(1) of the Act and confirmation of previous rulings.
Reasons: Consistent with previous ruling and opinion # 9706043, 9506285. Original request not accepted.
XXXXXXXXXX
XXXXXXXXXX 1-990502
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1999
Dear Sirs:
Re: XXXXXXXXXX
Advance Income Tax Ruling
Our file number 3-982447
We are writing in response to your letter of XXXXXXXXXX, in which you expressed concerns regarding Ruling E described on page 4 of our letter of XXXXXXXXXX, 1999.
Ruling E on page 4 of our letter reads as follows:
“E. The Children will not be considered to have received any proceeds of disposition for the purpose of subsection 107(1) of the Act as a result of the proposed transactions.”
We understand from your letter that your concern regarding the above ruling is that subsection 107(1) of the Act contains methods for determining the adjusted cost base of the Children’s interests and not the calculation of any capital gain.
In a telephone conversation XXXXXXXXXX, it has been agreed that Ruling E on page 4 of our letter would be replaced by the following:
“E. The Children will not be considered to have received any proceeds of disposition for the purposes of subsections 40(1) and 107(1) of the Act as a result of the proposed transactions.”
We confirm that the above change will not affect the rulings given and they will continue to be binding on the Department as indicated therein.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
2
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.../cont’d
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