| April 23, 1990 | |
| TO - H. Dompierre | FROM - Publications Division |
| Chief | Technical Review Section |
| T1/T3 Revenue Programs Section | Esta Mikhail |
| 952-3606 | |
| Attention: D. MacKenzie |
SUBJECT: 19(1) Remission of subsection 159(3) taxes
This confirms our telephone conversation of April 24, 1990 with Mr. MacKenzie of your office at which time we were advised that a reply to your memorandum of March 8, 1990 is no longer required.
As discussed with Mr. MacKenzie, the remission order only cancels the tax liability of 19(1) not that of the estate from which the property distribution occurred. The order remits a liability; it does not deem an amount to have been paid by . The order specifically describes the type of tax liability being remitted by making reference to the liability under subsection 159(3) of the Income Tax Act, to the distribution from the estate of the 19(1) to distributions before 1984. As confirmed by Mr. MacKenzie, 19(1) has no other subsection 159(3) tax liability. In view of these restrictions, the excess of the dollar amount mentioned in the order over the actual liability of the estate after the reassessment in 1986 is a nullity. 23
Sandy ParnanzoneActing ChiefTechnical Review SectionPublications DivisionLegislative Affairs Division