8 September 1999 Internal T.I. 9914457 - DIRECTOR'S LIABILITY V. ABIL

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 the comments in file 8-960871 still represent our views.

Position TAKEN:

Yes.

Reasons FOR POSITION TAKEN:

Longstanding position, and supported by jurisprudence.

            September 8, 1999

      Belleville TSO    HEADQUARTERS
      Audit Division    M. Azzi
            957-8972
      Attention: Tom Martin
            7-991445

Section 227 1 Liability - Not An Allowable Business Investment Loss

This is in reply to your memo of May 10, 1999, which was forwarded to us for reply by Headquarters Audit Directorate. You have requested confirmation as to whether the comments in our letter dated June 19, 1996 (our file no, 8-960871), on the above-noted subject, still represent our views.

We have not been provided with any facts on a specific case scenario on which we can comment. However, we can confirm that the views expressed in file 8-960871 still represent our position which, in fact, is a longstanding position.

We trust that these comments will be of assistance.

Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

c.c. Doug Watson
Audit Directorate