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: Subsection 153(4) of the Income Tax Act
This is in reply to your letter dated July 18, 1991 requesting the Department's views on several issues relating the provisions of subsection 153(4) of the Income Tax Act (the "Act") as amended with respect to taxation years commencing after 1986.
Your first concern is whether, under subsection 153(4) of the Act, the taxpayer has the option of including the relevant amounts in income. It is our opinion that there is no such option. In our view, the legislation is simply recognizing and excluding from the withholding/remittance requirements those situations where the relevant amounts have otherwise been included in the taxpayer's income.
With respect to your second question, it is our opinion that amounts received by the taxpayer prior to the effective date of the amendments (i.e. prior to taxation years commencing after 1986), but after 1984, are subject to amended subsection 153(4) in taxation years commencing after 1986. To the extent such amount is in respect of dividends to which the provisions of the previous version of subsection 153(4) applied, it is our view that a further remittance under the amended provisions is not required, based on the exception in the concluding words for situations in which "the tax under this subsection was previously remitted".
Your third question pertaining to the possibility of applying corporate tax paid by the taxpayer against a liability under subsection 153(4) has been referred to the Revenue Programs Division of the Collections and Accounting Directorate for direct reply to you.
Your fourth question regarding legislation being proposed by the province of Ontario under which amounts described in subsection 153(4) of the Act might become the property of the province has been referred to our Provincial and International Relations Division for consideration and reply to you.
We hope this will be of assistance to you.
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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