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: is a right held by retired partner pursuant to 96(2.1) inventory to that partner?
Position: no. not considered inventory
Reasons: Reading of the law.
XXXXXXXXXX 981290
S. Tevlin
Attention: XXXXXXXXXX
July 29, 1998
Dear Sirs:
Re: Subsection 97(2) of the Income Tax Act
We are writing in response to your letter dated May 13, 1998 wherein you asked that we reconsider the position, as described in our letter 980186 dated February 10, 1998, that a subsection 96(1.1) “right” is not to be considered inventory to a retired partner.
This is to advise you that we have reviewed our position and it continues to be our view that such a right is not inventory.
Yours truly,
for Director
Resources, Partnerships and
Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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