C.G. Toussaint (613) 995-1178
XXXX
November 8, 1984
Dear Sirs:
This is in reply to your letter dated September 18, 1954 wherein you requested our provision on the application of subsection 80(1) of the Income Tax Act to a proposed corporate reorganization.
Although your letter addressed a specific situation, we can only respond in general to your Question. As indicated in Information Circular 70-6R dated December 18, 1978, confirmations on the Depart- ment's position in specific circumstances are only given on an advance income tax ruling basis and then only when the proposed transactions are not primarily tax motivated.
Generally speaking, where by virtue of paragraph 88(1)(e.2) of the Act, the provisions of subsection 87(7) of the Act apply to a debt on the winding-up of a corporation, it is our view that the appli- cation of the provisions of subsection 80(1) of the Act to that debt would be precluded.
We trust this information will be of assistance to you.
Yours truly,
for Director Corporate Rulings Division Legislation Branch