Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:when will amounts be taxed/deducted under a proposal to allow employees to cash in sec 7 options and is a 110 deduction available
Position TAKEN:ruling request withdrawn.
Reasons FOR POSITION:position on 110(1)(d) & 7(3)(b) under review. payment taxable when election made.
XXXXXXXXXX 3-940940
Attention: XXXXXXXXXX
September 23, 1994
Dear Sirs:
Re: Paramount Resources Limited
This is with respect to your letter of April 7, 1994, in request of an advance income tax ruling on behalf of the above noted corporation. We apologize for the delay in our reply.
As discussed on September 19, 1994 (Harding/XXXXXXXXXX), the Department's interpretation of paragraphs 7(1)(b), 7(3)(b), and 110(1)(d) is presently under review. Accordingly, we are unable to provide any rulings with respect to your proposals until that review is complete. Nevertheless, and as also discussed with XXXXXXXXXX, it is our view that the provisions of paragraph 7(1)(b) would be applicable at the time any employee elected to receive cash consideration for an option to acquire shares.
The above comments are based on our understanding of the law as it applies in general and may or many not apply to the circumstances of a particular case. It does not form an advance income tax ruling and is not binding on the Department.
Your deposit will be returned under separate cover.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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