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.
19(1) 5-9622
J.E. Harms
March 14, 1990
Dear Sirs: Re: Request for an estimate as to the cost of obtaining an advance income tax ruling.
This is in response to your letter of February 9, 1990 in which you requested an estimate of the cost of obtaining an advance income tax ruling in respect of certain proposed transactions.
We have enclosed for your information a copy of Information Circular 70-6R issued by Revenue Canada, taxation which sets out the guidelines under which advance income tax rulings are issued. The fee currently charged for advance income tax rulings is minimum fee of $325.00 (which must accompany the rulings request) and $65.00 for each additional hour in excess of 5 spent in considering the request and furnishing the rulings requested. We regret that it is not possible in advance to provide a meaningful estimate of the amount of time required to renew any particular request and issue the rulings requested. Issues often arise during the course of a review of a rulings request that cannot reasonably be anticipated in advance of the review.
A proposal to increase the hourly fee from $65.00 to $80.00 and to increase the amount required to accompany the rulings request from $325.00 to $400.00 is currently under consideration.
We have not reviewed your summary of the proposed transactions in detail. However, it appears form our cursory review that subsection 84.1(1) of the Income Tax Act would apply to the disposition by Mr. and Mrs. X of their shares of the operating company to their holding company. If it does, Mr. and Mrs. X, depending on the facts, might be deemed to receive taxable dividends on the disposition. You might wish to address this issue before requesting any advance rulings in respect of the proposed transactions.
If you decide to seek an advance income tax ruling or rulings in respect of the proposed transactions, please follow the procedures outlined in Information Circular 70-6R.
Yours truly,
for Director Reorganizations and Non-resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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, 1990
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, 1990
Email this Content