Dear Sirs:
Re: Paragraph 54(c) of the Income Tax Act (Canada) (the "Act")
We are writing in response to your letter dated January 23, 1991 in which you requested our views regarding the application of the above referenced provision of the Act to the hypothetical situation outlined hereunder.
Facts
24(1)
24(1)
You have asked for our comments on:
24(1)
Our comments
The situation outlined in your letter appears to involve actual contemplated transactions. Assurance as to the tax consequences of contemplated transactions can only be obtained in the context of an advanced income tax ruling. In addition, the questions which you have raised can only be addressed in the context of an application for an advance ruling as they would require a careful review of all the relevant facts. The procedure for requesting an advance income tax ruling is outlined in Information Circular 70-6R2, dated September 28, 1990.
If you wish to obtain a binding commitment with respect to an actual series of proposed transactions, we would invite you to submit an advanced income tax ruling application.
Yours truly,
for DirectorReorganization and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch