Principal Issues: [TaxInterpretations translations] Does the position set out in paragraph 12 of IT-338R2 still represent the CRA's position?
Position: yes
Reasons: There has been no new jurisprudence or change to the Act that would alter our position.
XXXXXXXXXX 2007-023067 Michel Lambert CA, M.Fisc.
October 3, 2007
Dear Madam,
Subject: Interpretation Bulletin IT-338R2
This is further to your email of April 18, 2007, in which you asked whether the position set out in paragraph 12 of Interpretation Bulletin IT-338R2 still represents the Agency's position. More specifically, you asked whether the following passage is still valid:
To the extent the former partner has assumed the liabilities of the partnership, that former partner is considered to have made a contribution of capital to the partnership immediately before the partnership ceases to exist. For purposes of subparagraph 98(5)(a)(i), this results in an increase to the ACB of the former partner's interest in the partnership under subparagraph 53(1)(e)(iv).
Although Interpretation Bulletin IT-338R has been archived, we confirm that the above comment still represents the Agency's position.
As stated in Information Circular 70-6R5, this opinion is not an advance income tax ruling and is not binding.
Best regards,
Manager
Financial Sector and Exempt Entities Section
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch.