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.
Dear Sirs:
RE: Section 84.1
This is in reply to your letter of March 10, 1980 wherein you requested the Department's position as to the applicability of section 84.1 if a taxpayer had acquired shares after 1971 from a person with whom he/she was dealing at arm's length, but had also acquired treasury shares directly from the subject corporation after 1971.
The Department's view is that section 84.1 would not be applied as a result of the information you have submitted to us. However, taking into account other potential step transactions which may have occurred in the past, whereby a company converts its pre-1972 surplus into paid-up capital, it would be most prudent to obtain an advance income tax ruling based on the particular set of facts and transactions as contemplated.
We trust that the foregoing will be of some assistance to you.
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, 1980
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, 1980
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