14 September 89 T.I. (February 1990 Access Letter, ¶1108)

In response to a submission that expenses incurred between the time of an agreement, and the time that the agreement is reduced to writing, are eligible under s. 66(15)(d.1), RC stated its view that agreements generally are not binding until they are written.

ATR-22R (14 April 89): RC indicates that its rulings do not pertain to a price adjustment clause described in the ATR.

ATR-36 (4 Nov. 88): With respect to a price adjustment clause in the share provisions for preference shares issued on an estate freeze, RC states that it is unable to provide a ruling as to the possible application of s. 15(1) if the price adjustment clause becomes effective:

"since the operation thereof is not a proposed transaction. In our opinion, however, if all the conditions mentioned in paragraph 1 of Interpretation Bulletin IT-169 are met, the provisions of subsection 15(1) of the Act would not be applied to tax a benefit to the shareholders in these circumstances."

ss.16(12.6), (12.62) and (12.64), when they refer to "agreement" are reiterating the requirement in s. 66(15)(d.1) that the agreement be legally binding in order for expenses to "flow through" to a shareholder. The agreement, therefore, must be written.