| 19(1) | File No. 5-8669 |
| D. Turner | |
| (613) 957-2094 |
September 25, 1989
Dear Sirs:
Re: Subsection 96(3) and 97(2) of the Income Tax Act ("the Act")
On March 28, 1989, you sent a letter to us concerning an election under subsection 97(2) of the Act and the application of the rules in subsection 96(3) of the Act. In our May 9, 1989 reply we stated that an election under subsection 97(2) of the Act would only be valid if signed by each partner or a partnership.
It has subsequently come to our attention that elections will valid when one partner signs on behalf of the other partners and the rules in subsection 96(3) of the Act are met. Consequently, in the hypothetical situation in our May 9, 1989 response the election will be valid if made by partner A in his capacity as Managing Partner with authority to act on behalf of Partners B and C.
We trust this information will be of assistance.
Yours sincerely,
for DirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch