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 the grandfathering treatment in file #952849 regarding the change in position for the timing of adjustments to the adjusted cost base of partnership interests limited to the situation described therein?
Position:
Yes.
Reasons:
Grandfather treatment considered on a case by case basis. It is not of general application to any partnership interest which was acquired prior to the July 28, 1995 announcement of the change in position in Income Tax Technical News No. 5.
XXXXXXXXXX 960584
B. G. Dodd
Attention: XXXXXXXXXX
February 22, 1996
Dear Sirs:
Re: Adjusted Cost Base of Partnership Interest
We are writing in connection with your letter dated February 13, 1996, requesting clarification of the Department's change in position, announced on July 28, 1995, in the publication Income Tax Technical News No. 5, regarding the adjusted cost base of a partnership interest.
As you know, since that publication, the Department has considered grandfather treatment, whereby the pre-Technical News position would prevail, in specific cases based on the particular facts involved. Although we are currently reviewing our position on this matter and hope to announce some clarification, this will not entail the general grandfathering of all partnership interests acquired before July 28, 1995.
We hope this will be of assistance to you.
Yours truly,
for Director
Manufacturing Industries,
Partnerships and Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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