| June 5, 1990 | |
| Appeals Branch | Current Amendments and |
| Appeals and Referrals Division | Regulations Division |
| W.R. McColm | |
| Attention: D.W. Baines | 957-2068 |
| File No. F-3567 |
24(1)
This is in reply to your memo of February 28, 1990 concerning the above taxpayer in respect of which notices of objection have been file for the 1981 and 1982 taxation years.
In your memo you posed the following questions:
(1) Was it the intention of Parliament that an NRO should lose its status when it disposes of an eligible capital property?
(2) If a taxpayer loses its status as an NRO, did the legislators also intend it to lose its allowable refundable tax on hand at the end of the immediately preceding taxation year?
We posed the first question to the Department of Finance and they agreed that it was not intended that the disposition of capital property and eligible capital property should have differing consequences concerning the status of the NRO. For your information we have attached a copy of our letter to them and their reply.
With regard to the second question we were satisfied that the present consequences are in accord with tax policy and did not consider it necessary to contact the Department of Finance in this regard.
Please let us know if we can be of further assistance in this matter.
B.J. BrysonActing DirectorCurrent Amendments and Regulations Division
Attachments