8 August 1990 Ruling F3821 F - 1990 Technical Bill

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.

"1990 Technical Bill"

This is in reply to your memorandum of July 31, 1990.

The material released on July 13, 1990 by the Department of Finance was not a Bill.  It was draft legislation issued by press release and, in addition to numerous technical amendments, included draft legislation to implement the 1990 federal budget measures, the available-for-use rules, the venture capital corporation tax credit (from the 1989 budget), amendments that had been proposed as second reading amendments to Bill C-28, as well as draft legislation to implement measures announced in other press releases.

We expect a Bill to be tabled in the House in the fall to incorporate the aforementioned draft legislation.

We have the following observations on the draft provisions discussed in your memorandum:

Subsection 118.1(10)

You might consider also commenting on new paragraph 241(4)(k) of the ITA and subsection 32(5) of the Cultural Property Export and Import Act.

Subsection 165(1.1)

We understand that Head Office Appeals sent a memorandum on July l3, 1990 to all Chiefs of Appeal providing particulars of this change (and those dealing with extensions of time (sections 166.1 to 167).

Subsection 184(4)

Wouldn't the amendments to section 185 (liability for Part III tax) also be of interest to auditors?

You might also consider drawing auditors' attention to the following provisions that are to be amended/enacted:

     14(7) - replacement property rules;

     24(1) - ceasing to carry on business;

     28(4) and (4.1) - cash-basis taxpayers ceasing to carry on business in Canada;

     39(4.1) and 96(3) - partner elections re: Canadian securities;

     85(1.1) and (1.2) - rollover by non-resident of real property;

     110.6 - qualified small business corporation share

     125 - specified partnership income or loss;

     253(c), 116(5.2), 131(8) and 132(6) - dispositions of Canadian real estate by non-residents;

     256 - associated corporations;

     260 - securities lending.

We would appreciate it if you also request District Office staff (and yours as well) to advise us of any deficiencies/anomalies in the July 13 draft legislation or notes that may come to their attention.

B.J. BrysonActing DirectorCurrent Amendments and Regulations Division