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.
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5-932996 |
| XXXXXXXXXX |
M. Séguin |
Attention: XXXXXXXXXX
March 25, 1994
Dear Madam,
Re: Subsection 115(4) of the Income Tax Act
This is in response to your request of October 12, 1993 in respect of which you would like a confirmation of Revenue Canada's position as to whether or not the taxation year of a branch will be considered to have ended on the date when the branch transfers all of its assets to a Canadian corporation under section 85 of the Act and ceases to carry on business in Canada.
You mentionned in your letter that your understanding, following a telephone conversation with our Directorate, is that we would consider that the taxation of the branch will not come to an end and will continue to be the taxation year previously established for the purposes of the Act. You indicated that it was mentionned that the narrow application of subsection 115(4) of the Act lends support to this interpretation, since it deems there to be a year end in such circumstances only where the taxpayer was carrying on a business described in any of subparagraphs 66(15)(h)(i) to (vii) of the Act (various resource-related businesses).
We confirm your understanding of the issue.
This confirmation represents an expression of opinion and, as stated in Information Circular 70-6R2 is not binding on the Department.
Yours truly,
for DirectorReorganizations and Foreign DivisionSpecialty Ruling DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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