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: Price Adjustment Clauses
This is in reply to your letter of August 22, 1985 wherein you requested our opinion regarding the use of a price adjustment clause. More specifically, you requested that we confirm that the price adjustment clause described in your letter is legally viable and not otherwise offensive to Revenue Canada.
The Department's position with respect to price adjustment clauses is set out in IT-169. As stated therein, the Department is neither a valuator nor an arbritrator for the parties. In addition it does not offer comments on the "legal viability" of a price adjustment clause.
The Department's only interest in the valuation is for purposes of administering the Act and determining the tax consequences of a transaction. In this regard, the Department will rely on principals of Canadian valuation and law and will not necessarily agree with another jurisdiction's valuation.
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, 1985
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, 1985
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