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.
991985
XXXXXXXXXX Denise Dalphy
(613) 957-9231
Attention: XXXXXXXXXX
September 16, 1999
Dear Sirs:
Re: Class 41 and Subsection 1102(14) of the
Income Tax Regulations (the "Regulations")
This is in reply to your letter dated July 21, 1999 wherein you requested our interpretation of the interaction of the deeming provision in subsection 1102(14) of the Regulations and subparagraph (a.1)(iv) of Class 41.
We agree with your interpretation that where there has been an amalgamation between two non-arm's length persons and where paragraph 1102(14)(d) of the Regulations applies, an asset which is acquired by the amalgamated corporation and which was included in Class 41 of a predecessor/transferor corporation would generally remain in that class in the amalgamated/transferee corporation. This is consistent with the decision of the Tax Court of Canada in Red Deer Adviser Publications Ltd. V. M.N.R., 89 DTC 520. However, the same conclusion would not be reached where subsection 1102(20) of the Regulations applied, or where, for example, a deeming rule in subsection 1102(1) of the Regulations applied.
The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R3, the above comments do not constitute an income tax ruling and accordingly are not binding on the Department. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1999
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1999
Email this Content