18 October 1991 External T.I. 9034535 F - Request for Technical Interpretation Paragraph 251(5)(b)

By services, 18 January, 2022
Official title
Request for Technical Interpretation Paragraph 251(5)(b)
Language
French
CRA tags
251(5)(b)
Document number
Citation name
9034535
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
633410
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1991-10-18 08:00:00",
"field_tags": []
}
Main text

Dear Sirs:

Re: Request for Technical Interpretation Paragraph 251(5)(b) of the Income Tax Act (the "Act")

We are writing in response to your letter, dated November 29, 1990, regarding the application of the above provision of the Act to the hypothetical situation described below:

1.        A Ltd. is a Canadian corporation with the following share structure:

-    500,000 common shares owned by three unrelated individuals; and-    1,500,000 redeemable, non-voting preferred shares owned by X Ltd,

2.        X Ltd. is controlled by a public corporation and is not related to any of the individuals noted in para