Principal Issues: [TaxInterpretations translation] Is it possible to revise capital cost allowance claimed in a previous taxation year where the property is held by a partnership?
Position: Question of fact.
Reasons: All conditions in paragraph 10 of IC-84-1 must be satisfied by all members of the partnership.
XXXXXXXXXX 2010-036967 I. Landry, M. Fisc
October 19, 2010
Dear Sir,
Subject: Request for Revision of Capital Cost Allowance
This is in response to your letter of May 31, 2010, in which you asked us if a revision can be made to capital cost allowance claimed in a previous taxation year where the property in question is held by a partnership.
Unless otherwise indicated, all legislative references herein are to the provisions of the Income Tax Act (the "Act").
Our Comments
As stated in paragraph 22 of Income Tax Information Circular 70-6R5, Advance Income Tax Rulings, it is the practice of the Canada Revenue Agency not to issue written opinions on proposed transactions otherwise than by way of advance income tax rulings. Furthermore, when determining whether a completed transaction has received proper tax treatment, the determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you.
In general, a request for a revision to capital cost allowance claimed on property held by a partnership may be granted if all the conditions in paragraph 10 of Information Circular IC84-1, Revision of Capital Cost Allowance Claims and Other Permissive Deductions, are satisfied by all members of the partnership. Specifically, all members of the partnership must jointly request a revision to capital cost allowance claimed in a taxation year for which a notice stating that no tax is payable has been issued to each member of the partnership. Such request will be allowed provided there is no change in the tax payable for any member of the partnership for the year or any other year filed, including one that is statute barred, for which the time has expired for filing a notice of objection. Such request will not be allowed, however, where after February 24, 1977 the Minister has issued a notice of determination pursuant to subsection 152(1.1) to one or more members.
We hope that our comments are of assistance.
Best regards,
Randy Hewlett
Manager
for the Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch.