Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: XXXXXXXXXX
Position: XXXXXXXXXX Yes. XXXXXXXXXX
Reasons: XXXXXXXXXX and previous interpretations have confirmed XXXXXXXXXX
XXXXXXXXXX 2001-011066
XXXXXXXXXX, 2002
Dear XXXXXXXXXX:
Re: Advance Income Tax Ruling
XXXXXXXXXX
We are writing in response to your correspondence of XXXXXXXXXX wherein you requested an advance income tax ruling on behalf of XXXXXXXXXX. We also acknowledge the information provided in subsequent telephone conversations in connection with your request (XXXXXXXXXX) and your amended and restated advance income tax ruling request dated XXXXXXXXXX as well as additional correspondence.
To the best of your knowledge, and that of the taxpayers involved, none of the issues contained herein are:
(i) dealt with in an earlier return of the taxpayer or a related person;
(ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or a related person;
(iii) under objection by the taxpayer or a related person;
(iv) subject to a ruling previously issued by the Income Tax Rulings Directorate; or
(v) before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired.
Unless otherwise stated, all references to a statute are to the Income Tax Act R.S.C. 1985 (5th Supp.), c.1, as amended, (the "Act") and all terms and conditions used herein that are defined in the Act have the meaning given in such definition unless otherwise indicated.
Our understanding of the facts and proposed transactions is as follows:
Facts
1. XXXXXXXXXX (hereinafter "ACO") has been engaged XXXXXXXXXX. ACO's registered office is located at XXXXXXXXXX. ACO files its tax returns at the XXXXXXXXXX Taxation Centre and is served by the XXXXXXXXXX Tax Services Office.
2. XXXXXXXXXX.
3. XXXXXXXXXX.
4. XXXXXXXXXX.
Proposed Transactions
5. XXXXXXXXXX.
6. XXXXXXXXX.
7. XXXXXXXXXX.
8. XXXXXXXXXX.
9. XXXXXXXXXX.
10. XXXXXXXXXX.
11. XXXXXXXXXX.
12. XXXXXXXXXX.
13. XXXXXXXXXX.
14. XXXXXXXXXX.
15. XXXXXXXXXX.
Purpose of the Proposed Transactions
16. XXXXXXXXXX.
Ruling Given
Provided that the above statements constitute a complete and accurate disclosure of all the relevant facts, proposed transactions, and purpose of the proposed transactions and provided further that all the proposed transactions are completed as described above, we confirm the following:
XXXXXXXXXX will be considered to be an association organized exclusively for a purpose other than profit with no part of its income payable to or otherwise available for the personal benefit of any member XXXXXXXXXX so that, in any year in which it, in fact, operates on such basis, XXXXXXXXXX will qualify as a non-profit organization as described in paragraph 149(1)(l) and will, accordingly, be exempt from tax under Part I of the Act on its taxable income for that year.
Comments
The question of whether an association does, in fact, operate exclusively for any purpose other than profit with no part of its income payable to or otherwise available for the benefit of any member or shareholder is a question of fact which must be determined on an ongoing basis.
The ruling is given subject to the general limitations and qualifications set out in Information Circular 70-6R4 issued by the Canada Customs & Revenue Agency on January 29, 2001, and is binding upon the Agency provided that the proposed transactions are completed on or before XXXXXXXXXX. This ruling is based on the Income Tax Act and Regulations in their present form and does not take into account the effects of any proposed amendments thereto.
Nothing in this ruling should be construed as implying that the Canada Customs and Revenue Agency has accepted, approved or confirmed any other income tax implications, XXXXXXXXXX, in connection with the facts or proposed transactions that are not described herein.
Yours truly,
XXXXXXXXXX
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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