12 December 1989 Internal T.I. 59137 F - Acquisition of Beneficial Discretionary Interests

Dear Sirs:

This is in reply to your letter of November 6, 1989 as referred to in your letter of November 24. As was previously discussed 19(1) Harding) our reply of November 17 to your initial inquiry was mailed prior to our receipt of your later amended submission and consequently did not address your amended situations.

We have reviewed the two revised hypothetical situations amended to provide that more than one discretionary beneficiary exists in each case, and are of the opinion that our comments as previously provided are still applicable. We reiterate, however, that it is a question of fact as to whether or not the later contributions were made in respect of or for the purpose of acquiring the beneficial discretionary interests held in each case prior to the contribution.

We trust these above comments are satisfactory to your needs.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate