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: Refund or reimbursement of the purchase price of shares
This is in reply to your letter dated March 26, 1991, requesting our interpretation of the following situation:
XXX
Since the situation described above appears to involve actual taxpayers and completed transactions, we are unable to comment specifically on the situation set out in your letter. However, we offer the following general comments regarding paragraph 12(1)(x) of the Income Tax Act (the "Act").
Where a taxpayer receives a reimbursement in respect of the cost of a property, the amount received must be included in computing his income for a taxation year from business or property if it was received by the taxpayer in the course of earning income from a person who pays the amount
* in the curse of earning income from a business or property, or
* in order to achieve a benefit or advantage for himself or for persons with whom he does not deal at arm's length.
The amount to be included in income is limited to the amount that has not otherwise reduced the capital cost of the property pursuant to paragraph 53(2) of the Act.
We trust our comments will be of assistance to you.
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, 1991
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, 1991
Email this Content