| 24(1) | 902581 |
| O. Laurikainen | |
| (613) 957-2129 |
Attention 19(1)
October 4, 1990
Dear Sirs:
Re: Meaning of "Foreign Affiliate"
This is in response to your letter of September 21, 1990.
It is our view that an incorporated company created as such under the corporate statutes of a foreign jurisdiction (e.g. the Irish Companies Act) is, notwithstanding that its shareholders have unlimited liability for the debts of the company, a corporation within the meaning of section 248 of the Income Tax Act (the "Act"). Accordingly, it is possible for such a corporation to be a foreign affiliate of a taxpayer resident in Canada within the meaning set out in paragraph 95(1)(d) of the Act.
We trust this is the information you require.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch