A.B. Adler (613) 957-8962
19(1)
January 19, 1990
Dear Sirs:
This is in reply to your letter dated January 11, 1990, and is further to ours of October 11, 1989, concerning the application of paragraph 60(j.1) of the Income Tax Act ("Act") to an actual situation.
As indicated in our previous letter we are only in a position to provide you with our general comments.
A foreign corporation and a Canadian Corporation (within the meaning assigned by paragraph 89(1)(a) of the Act) that have a common parent corporation are related persons by reason of paragraph 251(2)(c) of the Act. Accordingly, the foreign corporation could be "a person related to the employer" for purposes of subparagraph 60(j.1)(ii) of the Act.
We trust our comments are sufficient for your purposes.
Yours truly,
for Director Financial Industries Division Rulings Directorate