27 April 2017 Internal T.I. 2017-0684831I7 - Changes to relevant spot rate -- summary under Relevant Spot Rate

What will CRA accept as “another rate of exchange that is acceptable to the Minister” under the relevant spot rate definition? CRA responded:

  • The Minister will generally accept a rate quoted by another source [rather than the daily rate quoted by the Bank of Canada] provided it is:
    • widely available;
    • verifiable;
    • published by an independent provider on an ongoing basis [e.g., Bloomberg L.P., Thomson Reuters Corporation and OANDA Corporation, whose rates are "generally acceptable"]; …
    • used in accordance with well-accepted business principles;
    • used for the preparation of the taxpayer’s financial statements; and
    • used consistently from year to year by the taxpayer. ...
  • The Bank of Canada rate will still be required in respect of a taxpayer transitioning into or out of income tax reporting in its elected functional currency in accordance with subsections 261(7) or 261(12)... .
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Topic
Income Tax Act - s. 261(1) - Relevant Spot Rate
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