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 Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
SUBJECT: STRUCTURED SETTLEMENT SECTION: 56(1)(d)
920395
A.W. Larochelle
(613) 957-2140
June 3. 1992
Dear Sirs:
Re: Structured Settlements
This is in reply to your letter of Febuary 5, 1992 with enclosures concerning the above noted subject. We regret the delay in replying to your letter.
You have asked us to clarify the Department's position in connection with the assignment of liability in relation to a structured settlement for damages arising from a personal injury or death claim by an individual. Included with your letter was a copy of your proposed Article on structured settlements and you have asked for any comments which we might wish to make on it.
Our Comments
In our telephone conversation of March 16,1992 (XXX/Larochelle), we discussed the subject in detail, particularly with regard to the concerns raised by you in your letter. As a result of our discussion, you are now fully aware of this Department's position that it will accept either a conditional or absolute assignment where it forms an integral part of the settlement agreement and where all parties to the agreement have agreed to such action.
The Department has recently issued a favourable advance income tax ruling concerning a structured settlement that involved the assignment of a settlement agreement to an appropriate assignee in circumstances where all the necessary documents reflected such action. We expect that this ruling will be released to the public in the near future by way of a published advance ruling.
We trust our comments, particularly those made in our telephone conversation, will prove helpful. If we can be of any further assistance regarding this subject, please feel free to contact this office at your convenience.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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