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:
Re: Clause 31(8)
Technical Amendments - Income Tax Act
Draft Legislation - July 13, 1990
This is in reply to your letter dated July 19, 1990 wherein you requested our confirmation of your understanding on the above subject matter in a situation where an arriving immigrant sets up a non- resident discretionary trust and funds the trust with a loan. Under this arrangement the immigrant is the settlor/lender and also a discretionary capital beneficiary of the trust.
You also wanted to know if we were aware of any intention on the part of the Department of Finance to provide a change to the Income Tax Act on this matter.
We agree with you that the proposed clause 31(8) does not provide the solution that you were looking for.
Your second concern relates to a matter of tax policy and we have taken the liberty of forwarding a copy of our letter to Ms. C. Muirhead, of the Department of Finance to whom you sent a copy of your letter, in order that she might deal with you directly on this issue.
We trust the above action meets with your approval.
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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