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.
RE: Cooperative Corporations
This is in reply to your memorandum of October 1, 1980 and further to our recent telephone conversation.
As we understand it, an individual who is a member of a cooperative corporation wishes to contribute some farmland to the corporation. The cooperative corporation was incorporated pursuant to an act of the province of Saskatchewan and was formed without share capital.
We confirm your view that as the cooperative corporation is unable to issue a share of its capital stock in exchange for the farmland the individual will be unable to avail himself of the rollover provisions of section 85. Accordingly, section 69 may have application.
We also point out that, even if the cooperative were to amend its memorandum of association to convert from an association without share capital to one with share capital, in view of the fact the property is to pass for no consideration application of paragraph 85(1)(e.2) would have to be considered.
We also confirm you view that a cooperative corporation is not a partnership.
We trust the foregoing will clarify the issues raised and apologize for the delay in responding.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1980
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1980
Email this Content