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: provided general comments on Part IV tax
Position:
Reasons:
XXXXXXXXXX 5-982804
D. Yuen
December 1, 1998
Dear XXXXXXXXXX:
We are writing in response to your letter of October 28, 1998 wherein you requested our comments on the tax implications of a series of proposed transactions that includes the payment of dividends between 2 corporations owned by the same individual and the shifting of refundable dividend tax on hand (within the meaning of subsection 129(3)) within a related group of corporations. Written confirmation of the tax implications inherent in a series of proposed transactions are given by this directorate only where transactions are outlined in an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R3 which was issued by Revenue Canada on December 30, 1996. Questions concerning actual fact situations should otherwise be directed to your local tax services office. Accordingly, we regret that we are unable to comment on the specific series of transactions outlined in your letter.
For your information, we refer you to Interpretation Bulletin IT-269R3 “Part IV tax on taxable dividends received by a private corporation or a subject corporation” and to Revenue Canada document #9629325 which comments on the application of subsection 129(1.2) in a situation involving a related corporate group.
All statutory references contained in this letter are to the Income Tax Act, R.S.C. 1985 (5th Supp), c. 1, as amended to the date hereof.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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