Principal Issues: Taxpayer lost all receipts in connection with her acquisition of gold kilo bars acquired at various times during the 1970's and could not recall the amount she paid for these purchases. The taxpayer wrote to the Minister requesting assistance in establishing the cost of her gold bars.
Position: None taken.
Reasons: Since the matter involved completed transactions, the taxpayer was referred to her local tax services office for further assistance.
October 22, 2010
XXXXXXXXXX
Dear XXXXXXXXXX :
The office of the Honourable James M. Flaherty, Minister of Finance, forwarded to me a copy of your correspondence, which I received on September 15, 2010, concerning the cost of gold you purchased as an investment.
I am advised that you recently spoke with Mr. Tim Fitzgerald, an official of the Income Tax Rulings Directorate. You mentioned to him that you had misplaced your receipts for approximately 230 ounces of gold that you purchased at various times in the 1970's. As you do not remember the actual purchase cost and you have no receipts, you would like help in determining the cost you should use in calculating your gain for income tax purposes if you sell your gold in the future.
I empathize with your difficulty in establishing the cost of your gold purchases. I assure you the Canada Revenue Agency (CRA) will not set the cost at nil since you paid the going market rate for the purchases. In your special circumstances, the CRA will accept an estimated cost for your gold.
I have asked XXXXXXXXXX at the XXXXXXXXXX Tax Services Office, to help you figure out a way of establishing the cost of your gold that would be acceptable to the CRA. I invite you to call XXXXXXXXXX at XXXXXXXXXX . He is aware of our correspondence and will be pleased to assist you.
I appreciate the opportunity to respond to your concerns.
Yours sincerely,
Keith Ashfield
Tim Fitzgerald, CGA
2010-038077