17 December 2008 External T.I. 2007-0253031E5 - Loss Consolidation Arrangement

By services, 28 November, 2015
Bundle date
Official title
Loss Consolidation Arrangement
Language
English
CRA tags
20(1)(c); 245(2)
Document number
Citation name
2007-0253031E5
Severed letter type
Technical Interpretation - External
Author
Sylvain Grégoire
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
358758
Extra import data
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Workflow properties
Workflow state
Published
Workflow changed
Main text

Principal Issues: Whether the proposed loss consolidation arrangement within an affiliated group of corporations is acceptable?

Position: No

Reasons: Lossco does not have the borrowing capacity required to realize the loss consolidation arrangement. In that regard, it is our opinion that it is the borrowing capacity of the entity that actually suffered the losses, rather than the borrowing capacity of the affiliated group as a whole, that is relevant in the particular circumstances. Ruling withdrawn.

   									2007-025303
XXXXXXXXXX 								Sylvain Grégoire
(450) 926-7472
December 17, 2008

Dear Sir;

SUBJECT: Advance Income Tax Ruling Request
XXXXXXXXXX

This is to confirm that you have indicated in a telephone conversation of October 16, 2008 (XXXXXXXXXX /Bisson) that you are withdrawing your Advance Income Tax Ruling request dated September 19, 2007.

We understand that your client would not have the borrowing capacity required to realize a loss consolidation within an affiliated group. In that regard, it is our opinion that it is the borrowing capacity of the entity that actually suffered the losses, rather than the borrowing capacity of the affiliated group as a whole, that is relevant in the particular circumstances of your request.

We have closed our file concerning this matter. An invoice for the time spent on your Advance Income Tax Ruling request will be forwarded to you under separate cover.

Yours truly,

Maurice Bisson CGA.

Section Manager
Reorganization and Resources Section
Reorganization and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

Summaries
17 December 2008 External T.I. 2007-0253031E5 - Loss Consolidation Arrangement -- summary under Paragraph 111(1)(a)