| 24(1) | 5-901944 |
| R.D. Mundell | |
| (613) 957-2139 | |
| 19(1) | EACC9644 |
| September 19, 1990 |
Dear Sirs:
This is in reply to your letter of August 16, 1990, in which you requested our opinion on the interpretation of paragraph 128(1)(a) of the Income Tax Act with respect to the possible change of control of the shares of a wholly owned subsidiary held by the bankrupt form part of the estate of the bankrupt which becomes subject to the administration of the trustee following his appointment.
As paragraph 128(1)(a) provides that a trustee in bankruptcy is deemed to be the agent of the bankrupt, it follows that, for purposes of the Income Tax Act, there has been no change in beneficial ownership of the shares with you that it appears reasonable to conclude that there has been no change in control of the subsidiary.
These comments represent our opinion of the law as it applies generally. As indicated in paragraph 24 of Information Circular 70-6R dated December 18, 1978 this opinion is not a ruling and accordingly, is not binding on Revenue Canada, Taxation.
We trust this will be of assistance.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch