5-910677
H. Woolley
(613) 957-2139
24(1)19(1)March 22, 1991
Dear Sirs:
Re: Subsection 110.6(8) of the Income Tax Act
We are replying to your letter dated February 26, 1991 (received by facsimile on March 8, 1991) wherein you requested our views regarding the application of subsection 110.6(8) and other provisions of the Income Tax Act to certain proposed transactions.
The situation outlined in your letter appears to involve actual proposed transactions or transactions seriously contemplated by identifiable taxpayers. As stated in paragraph 21 of Information Circular 70-6R2, dated September 28, 1990, the Department does not issue opinions with respect to specific proposed transactions. However, we would be pleased to consider this matter in the context of a request for an advance income tax ruling. We should, however, caution that the issue of whether it is reasonable to conclude that a significant part of a capital gain is attributable to the fact that dividends were not paid on a share is a question of fact on which the Department will not rule. The procedures for requesting an advance income tax ruling are set out in the aforementioned Information Circular 70-6R2.
Yours truly,
for Director Reorganizations and Non-Resident Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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