24 January 1990 Income Tax Severed Letter AC745127 - Qualified Small Business Corporation Share

Halifax District Office                      Specialty Rulings
                                               Directorate
                                             S. Leung
                                             957-2116
Attention:  K. McGuigan
            Audit Review

Qualified Small Business Corporation Share

We are writing in response to your memorandum of November 10,
1989 wherein you requested our opinion with respect to the
above-referenced subject matter which is the subject of an
enquiry from                24(1)

The situation outlined in the letter of 24(1) appears to involve actual proposed transactions with identifiable taxpayers and should therefore, be the subject of a request for an advance income tax ruling. The procedures for making such a request are outlined in Information Circular 70-6R, dated December 18, 1978 and the related Special Release thereto. However, we can offer the following general comments.

24(1)

In this regard, we would like to point out that

(i) subsection 248(10) of the Act contains an extended definition of the term "series of transactions or events", and

(ii) it is our view that a preliminary transaction will form part of a series of transactions referred to in subsection 248(10) of the Act if, at the time the preliminary transaction is carried out, the taxpayer has the intention to implement the subsequent transactions constituting the series and the subsequent transactions will be part of a series although at the time of the completion of the preliminary transaction the taxpayer either had not determined all of the important elements of the subsequent transactions including, possibly, the identity of other taxpayers involved, or had lacked the ability to implement the subsequent transactions.

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