24(1)
901067
D. Yuen
(613) 957-2111
19(1)Dear Sirs:
Re: Subsection 111(5.1) of the Income Tax Act (Canada) (the "Act")
We are writing in response to your letter of May 30, 1990 wherein you requested our comments on whether a non-capital loss, as defined in paragraph 111(8)(b) of the Act, created or increased pursuant to subsection 111(5.1) of the Act may be carried back to the three years preceding the year in which there was a change of control. We apologize for the delay in our reply.
Comment
It is our view that the deductibility of a non-capital loss created or increased by subsection 111(5.1) of the Act is generally determined under the provisions of paragraph 111(1)(a) and subsections 111(3) and 111(5) of the Act.
The comment expressed is not an advance income tax ruling and is not considered binding on the Department, in respect of any taxpayer, in accordance with paragraph 24 of Information Circular 70-6R dated December 18, 1978.
Yours truly,
for Director Reorganizations and Non-Resident Division Rulings Directorate Legislative and Intergovernmental Affairs Branch