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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Correction to Paragraph 41 of Document 2003-004032 dealing with whether certain corporations are affiliated, related or associated.
Position: Company C is associated with Company E under subsection 256(2).
Reasons: Company C and Company E are deemed to be associated with each other because each company is associated with Company A.
2003-004892
XXXXXXXXXX T. Lanzer
(613) 957-2129
November 18, 2003
Dear XXXXXXXXXX:
Re: Technical Interpretation No. 2003-004032
Affiliated, Related or Associated Companies
We are writing to correct an error in the above-noted technical interpretation sent to you, dated October 24, 2003, that examined whether certain companies were affiliated, related or associated with each other.
Paragraph (41) of that letter should state the following:
(41) Company C and Company E: If Company C and Company E would not be associated with each other under any other provision, Company C is deemed to be associated with Company E under subsection 256(2) because each company is associated with Company A, as described in Paragraphs (32) and (34) above, unless, for the purposes of section 125, Company A elects not to be associated with either Company C or Company E. Company C and Company E would be associated with each other under another provision, for example, if either Son or Wife of Son is under 18 years of age such that subsection 256(1.3) would apply.
In accordance with paragraph 22 of Information Circular 70-6R5, the opinions expressed in this letter are not income tax rulings and are therefore not binding on the CCRA.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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