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.
| DECISION SUMMARY |
File No. 9101-4 |
| |
Personal and General Section |
| |
J.D. Jones |
November 15, 1989
Issue: Whether the provisions of subsection 80.4(3) of the Act are applicable with respect to foreign currency loans by a bank to its employees pursuant to section 80.4 of the Act.
Background
24(1)
Problem
21(1)(b)
Position
24(1)
Rationale
1. The law in this area is quite clear. In order to come within the exempting provisions of subsection 80.4(3) of the Act, the taxpayer must show that the loan bears a rate of interest that would have been agreed upon, having regard to all circumstances, between arm's length parties. 24(1)
2. 23
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