2 November 1990 External T.I. 9024055 F - ACB of Capital Interest in Non-resident Trust at the Time of Becoming Resident in Canada

By services, 18 January, 2022
Official title
ACB of Capital Interest in Non-resident Trust at the Time of Becoming Resident in Canada
Language
French
CRA tags
48(3), 107(1.1)
Document number
Citation name
9024055
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
630765
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-11-02 07:00:00",
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Main text
24(1) 5-902405
  D.S. Delorey
  (613) 957-3495

19(1)

November 2, 1990

Dear Sir or Madam:

Re:  Subsections 48(3) and 107(1.1) of the Income Tax Act (the "Act")

This is in reply to your letter of August 31, 1990 concerning a person who became resident in Canada at a time that he had a capital interest in a non-resident trust.

Where a taxpayer had a capital interest in a non-resident trust at the time he became resident in Canada, it is our view that subsection 48(3) of the Act would apply in determining the adjusted cost base of that interest, and subsection 107(1.1) of the Act would not apply.

Our comments are an expression of opinion only and are not binding on the Department, as explained in paragraph 21 of Information Circular 70-6R2. We trust however that they are of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate