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.
Dear Sirs:
This is in reply to your letter dated April 26, 1990 concerning the application of subsection 249(4) to foreign affiliates.
We confirm that we are of the opinion that subsection 249(4) does not apply to a foreign affiliate. However, we note that the proposed amendments to the Income Tax Act released by the Minister of Finance on July 13, 1990, if enacted, provide for an amendment to subsection 249(4) such that it will apply to a foreign affiliate that carried on a business in Canada at any time in its last taxation year commencing before the change in control of the foreign affiliate.
In our opinion, subsection 249(4) as enacted by S.C. 1987, c. 46, s. 70 applies only to corporations in respect of which subsection 249(1) applies. It is also our opinion that subsection 249(1) does not apply to a corporation that is a foreign affiliate as paragraph 95(1)(g) applies to such corporations. Accordingly, subsection 249(4) does not apply to a corporation to which paragraph 95(1)(g) applies.
In accordance with paragraph 24 of Information Circular 70-6R dated December 18, 1978, the opinions expressed herein are not binding on the Department.
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