| 19(1) | File No. 5-9543 |
| A.B. Adler | |
| (613)957-8962 |
March 5, 1990
Dear Sirs:
This is in reply to your letter dated February 2, 1990 in which you requested our views concerning the following factual situation.
24(1)
In particular you requested our views whether the taxpayer's years of service from 1969 to 1982 with Company A can be used in determining the portion of the retiring allowance that may be transferred to his RRSP pursuant to paragraph 60(j.1) of the Income Tax Act ("Act").
For your information we do not provide written opinions with respect to actual and completed transactions. However, we are prepared to provide you with the following general comments.
We consider an amalgamation (as described in subsection 87(1) of the Act) of two corporations as including the acquisitions of each corporation's business for the purposes of subparagraph 60(j.1)(iv) of the Act and, accordingly, a predecessor corporation would be considered to be a person related top the employer/amalgamated company for purposes of subparagraph 60(j.1)(ii) of the Act.
We suggest that you contact relevant officials at your local district taxation office should you wish to further discuss your client's situation.
We trust that our comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate