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:
Whether a separate calculation under the definition of specified partnership income is required when a partnership has two fiscal periods in the taxation year of the member corporation.
Position: No
Reasons: The Act, 903670 and 952033
5-952835
XXXXXXXXXX L. Roy
Attention: XXXXXXXXXX
June 21, 1996
Dear Sir\Madam:
Re: "Specified Partnership Income"
This is in reply to your letter of October 30, 1995 in which you requested our opinion on whether a separate calculation is required for the definition of "specified partnership income" under subsection 125(7) of the Income Tax Act (the "Act") when a partnership has two fiscal periods ending in the taxation year of the member corporation.
Components "G" and "K" of the definition of specified partnership income under subsection 125(7) of the Act refer to the total of all amounts each of which is the corporation's share of the income of the partnership for a fiscal period ending in the year. Component "L" refers to the total of all amounts each of which is the income of the partnership for a fiscal period ending in the year.
Consequently, it is our view that each of components "G", "K" and "L" will be the total of two amounts since there will be two fiscal periods of the partnership that end in the corporation's taxation year.
As explained in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, the above comments do not constitute an advance income tax ruling and are not binding on the Department. We trust that our comments are of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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