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.
19(1) O. Laurikainen
(613) 957-2125
February 1, 1990
Dear Sirs:
Re: Foreign Affiliate - Change of Control
This is in response to your letter of August 16, 1989 wherein you have enquired about the application of subsection 249(4) of the Income Tax Act (the “Act”) to a situation involving the change of control of a foreign affiliate.
In our view, the general words used in section 249 of the Act do not indirectly alter the specific provisions of subdivision i of Division B of the Act (which specifically deals with corporations not resident in Canada). Accordingly, we are of the opinion that the definition of “taxation year” in paragraph 95 (1)(g) of the Act would, for the purposes of subdivision i, override the rules in respect of “taxation year” in section 249 of the Act. In sum, subsection 249(4) of the Act will not apply to foreign affiliates.
Where a year end is triggered by the tax legislation of the country in which the affiliate is resident the impact on subsection 93(1) of the Act would depend on the timing of such year end. If you are interested in the result in a particular situation, we would be pleased to consider a submission which describes a detailed set of facts.
We hope the above information is of assistance to you.
Yours truly,
for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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, 1990
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, 1990
Email this Content