| Your File: 95, 770 | |
| 19(1) | File No. 5-8269 |
| C.R. Bowen | |
| (613) 957-2096 |
October 30, 1989
Dear Sirs:
We are writing in reply to your letters of June 21, 1989, and July 21, 1989, wherein you requested our opinion on the possibility of receiving a favourable advance income tax ruling indicating that subsection 103(1) of the Income Tax Act (the "Act") will not apply in respect of a proposed allocation of income and losses of a partnership. We regret the delay in replying to your request.
Having reviewed the facts provided in your letters, we are unable to provide any assurance or comfort on the prospect of obtaining a favourable ruling on the non-application of section 103 of the Act in the proposed profit sharing arrangement. The issue on which you have requested our opinion is such that any meaningful comments could only be provided if all of the relevant facts and circumstances surrounding this particular situation are available for our review. This is not to say that a favourable ruling is not possible, but, in the circumstances described, we could only make such a decision in the course of considering a request for an advance income tax ruling on the entire proposed transaction.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch