6 December 1988 Income Tax Severed Letter 5-6710 - [Subsection 70(6) and 70(6.2) of the Income Tax Act]

By services, 22 July, 2022
Official title
[Subsection 70(6) and 70(6.2) of the Income Tax Act]
Language
English
Document number
Citation name
5-6710
Severed letter type
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656694
Extra import data
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"field_release_date_new": "1988-12-06 07:00:00",
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Main text

A. Humenuk (613) 957-2135

DEC - 6 1988

Dear Sirs:

Re: Subsection 70(6) and 70(6.2) of the Income Tax Act

We are responding to your letter dated October 5, 1988, wherein you requested our views on the application of the above noted subsections of the income Tax Act (the "Act"). You have asked whether the executors of an estate can elect under subsection 70(6.2) of the Act in respect of some shares and not others, where all of the subject shares are identical properties.

Although the shares may be identical properties, each share is still a separate property as defined in subsection 248(1) of the Act. As subsection 70(6.2) does not impose a requirement to treat any property in the same manner as any other property, it is our view that an executor can elect under subsection 70(6.2) of the Act in respect of some shares and not others, provided the shares otherwise qualify for the election.

We trust our comments will be of assistance

Yours truly,

Director General Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch