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.
D. Yuen
19(1) (613) 957-2111
Mar. 8, 1990
Dear Sirs:
Re: Subsection 249(4) of the Income Tax Act (Canada) (the "Act")
We are writing in response to your letter of February 19, 1990 wherein you requested our opinion on the applicability of subsection 249(4) of the Act in the following situation:
- • A U.K. company has a wholly-owned Canadian Subsidiary and a branch operation.
- • the income earned from the branch operation is subject to tax under Part I of the Act.
- • During the year, control of the U.K. company was acquired.
You have requested our opinion as to whether or not subsection 249(4) of the Act will apply to deem a taxation year to have ended as a result of the change of control.
Comments
It is our view that the provisions of subsection 249(4) of the Act would apply in the above hypothetical situation.
The comments expressed are not advance income tax rulings and are not considered binding on the Department, in respect of any taxpayers, in accordance with paragraph 24 of Information Circular 70-6R dated December 18, 1978.
Yours truly,
for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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