20 November 1996 External T.I. 9634735 - ALCO DISPENSING

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Comment requested regarding the decision in Alco Dispensing (96 DTC 1586) and IT-293R paragraph 25

Position:

Decision of Tax Court is under appeal - unable to offer any meaningful comment

Reasons:

Decision being appealed by taxpayer

							963473
XXXXXXXXXX							J.P. Dunn

Attention: XXXXXXXXXX

November 20, 1996

Dear Sirs:

Re: Alco Dispensing Canada Ltd. (96 DTC 1586)

We are writing in response to your correspondence of October 17, 1996 concerning the decision of the Tax Court in the above referenced matter and, more particularly, whether the position adopted by the Department in that proceeding is consistent with that stated in paragraph 25 of Interpretation Bulletin IT-293R.

We have been advised that the above-noted decision of the Tax Court has been appealed and, consequently, consider that it would be inappropriate to comment in this regard prior to the hearing of that appeal. We would, however, advise that the Department intends to evaluate the comments in the interpretation bulletin to ensure that they accurately reflect the ultimate decision of the Courts in this matter.

We trust that this is the information which you require.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch