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.
May 18, 1993
| Toronto District Office |
Head Office |
| Financial Industries Division |
G. Martineau |
| Client Assistance Division |
(613) 957-8962 |
Attention: D. Russo
Bill C-92 Subparagraph 206(2)(a)(ii) of the Act
This is in reply to your facsimile transmission dated May 3, 1993 regarding the amendments to subparagraph 206(2)(a)(ii) in Bill C-92.
Paragraph 206(2)(a) is amended so that tax on foreign property will not be imposed in respect of property that was not foreign property when it was acquired, but that subsequently becomes foreign property at a later time, until two years after such time. This amendment is applicable to months ending after December 20, 1991. The Department permits a taxpayer to compute the Part XI tax for the months ending after December 20, 1991 pursuant to revised subparagraph 206(2)(a)(ii) even if Bill C-92 is not law.
In our view, a share of a Canadian corporation that becomes a non- resident corporation in July 1991 will not be subject to Part XI tax for the months ending after December 20, 1991 until July 1993 by virtue of subparagraph 206(2)(a)(ii) to the extent it is not an amount included under subparagraph 206(2)(a)(i).
Section chief Financing, Leasing and Plans Section Financial Industries Division
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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