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.
We were not prepared to rule because of the following points:
- i) dividend only set up is possible with the present share structure.
- ii) management fees - no restrictions on payment in present structure, and
- iii) disposition of shares would be likely in our opinion since the rights of the new Class C shares will have been significantly altered.
We were unable to rule favourably as the disposition of shares (shares of value were branched into shares of questionable value). Shares to be sold purchased in the form of consideration not specified in the form of management fees deductible by the company.
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© Sa Majesté la Reine du Chef du Canada, 1980
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