Dear Sirs:
This is in reply to your letter of March 21, 1991 wherein you suggested that the commentary in paragraph 14 of IT-270R2 may have overlooked the new rules of subparagraph 152(4)(b)(iv) of the Income Tax Act.
While we agree with your observation, there is nothing in the above mentioned paragraph that would imply that the comments therein would not extend to a taxpayer affected by the rules of subparagraph 152(4)(b)(iv). The thrust of paragraph 14 of IT-270R2 is to advise taxpayers to file a waiver as described in subparagraph 152(4)(a)(ii) in all cases where the statute of limitations with respect to a particular taxation year may expire before an expected foreign tax assessment (reassessment) or reimbursement is paid or received.
We will advise the appropriate authorities that paragraph 14 of IT-270R2 will require clarification to correct the oversight in question.
We wish to thank you for bringing this matter to our attention.
Yours truly,
for DirectorReorganizations and Non-Residents DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch