Nov 18 1988
Specialty Rulings Directorate S. Leung 957-2116
SUBJECT: Subsection 69(3)
This is in response to your memorandum of September 27, 1988 wherein you requested our views with respect to the above provision of the Act.
In our view, it appears that subsection 69(3) of the Act could result in a downward adjustment to the amount described in that subsection, if the amount is in excess of a reasonable amount. However, we would question what constitutes a reasonable amount, given that the parties had agreed to an amount that now appears to be excessive.
It appears that the downward adjustment was not the intent of the legislation as evidenced by the Technical Notes to the Notice of Ways and Means Motion of September 9, 1985. Consequently, we have referred this matter to our Current Amendments and Regulations Division for their consideration.
Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch