7-903634
Dear Sirs:
Re: Regulation 229 of the Income Tax Act
We are responding to your fax of December 14, 1990 in which you requested a technical interpretation of Section 229 of the Income Tax Regulations and, specifically, whether 24(1) are required to comply with the reporting requirements of section 229 of the Income Tax Regulations.
Pursuant to our telephone conversations of January 3, 1991 19(1) Goldstein) and January 7, 1991 19(1) Goldstein) it is our understanding that the term
24(1)
The generally accepted definition of a partnership is "the relationship that subsists between persons carrying on a business in common with a view to a profit". Insofar as 24(1) regardless of the number of branches or officers it has in the 24(1) is only one legal entity, the essential requirement that a relationship subsists between persons, being at least two separate legal entities, would not appear to be met if our understanding of the facts stated above is correct. If this is in fact the case 24(1) would not have to file a partnership return or seek an exemption from filing same pursuant to Regulation 229 of the Income Tax Act in respect of its "nominee partnership".
While we trust the foregoing comments are of assistance, they do not constitute an advanced income tax ruling, and, therefore, are not binding on the Department.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate