| 24(1) | 5-902948 |
| H. Woolley | |
| (613) 952-8108 |
19(1)
November 20, 1990
Dear Sirs:
We are replying to your letter dated September 12, 1990 (and received by facsimile on October 22, 1990) wherein you requested our views on the application of section 245 of the Income Tax Act (the "Act") to the series of transactions described below. We also acknowledge a phone discussion of November 1, 1990 24(1) Woolley).
Facts
24(1)
Proposed Transactions
24(1)
Our comments
The situation outlined in your letter appears to relate to specific proposed transactions. Confirmation of the tax consequences of specific proposed transactions will only be provided in response to a request for an advance income tax ruling. The procedures for requesting an advance ruling are set out in Information Circular 70-6R2, dated September 28, 1990. We can, however, provide the following general comments.
Whether section 245 of the Act applies to a specific situation can only be determined following a review of all the facts and circumstances of that situation. However, in Supplement 1 to Information Circular IC 88-2 at paragraph 3 the Department outlines its general position with respect to the application of section 245 of the Act to a crystallization of the capital gains deduction.
As indicated in Information Circular IC 70-6R2 dated September 28, 1990, this opinion is not a ruling and accordingly is not binding on Revenue Canada, Taxation.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch