2014-0519801I7 DOCUMENT #2013-049684

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.

Principal Issues: Is the position outlined in document 2013-049684 still our position?

Position: No.

Reasons: Subclause 95(2)(a)(ii)(D)(II) applies.

Author: No.

Section: 95(2)(a)(ii)(D)

Maryse Patenaude 
Montérégie Rive-Sud TSO 
3250 Lapinière Blvd.
Brossard, QC J4Z 3T8

Hugo Gravel, LL.B., 
D. Fisc.

September 16, 2014

Ms. Patenaude :

Subject : Document #2013-049684

Further to the e-mail dated February 5, 2014 received from your office, the purpose of this letter is to inform you that we are no longer of the view that the interest received on Note 2 should be included in the FAPI of NR1, as such terms are used in document number 2013-049684. Upon further consideration, we are of the view that subclause 95(2)(a)(ii)(D)(II) of the Income Tax Act, 1985 R.S.C., c.1 (5th suppl.), as amended, applies in the circumstances outlined in that document.

We trust these comments are of assistance.

Dave Beaulne, CPA, CA 
for Director
International & Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© Her Majesty the Queen in Right of Canada, 2014

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté la Reine du Chef du Canada, 2014

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