| 19(1) | 5-9169 |
| Peter Lee | |
| (613) 957-2745 | |
| December 19, 1989 |
Dear Sir:
Re: Proposed section 16.1 of the Act
We are writing in reply to your letter of November 29, 1989 with respect to the above-noted matter.
Whether a transaction is a lease, a sale or a disposition of property under the Act must be determined in light of the true legal rights and obligations of the parties involved in the transaction. Interpretation Bulletin IT-233R, which is currently being revised, will likely contain the Department's views on when a transaction would be considered to be a disposition of property, rather than a lease, under the Act. Consequently, should it be determined that a transaction is not a lease, proposed section 16.1 of the Act would not have any application to the transaction.
We hope that the foregoing is helpful to you. This is not a tax ruling and accordingly is not binding on the Department.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate