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:
Whether the recommendation to amend IT-233R to state that the position therein would apply for all purposes of the Act has been approved.
Position:
Recommendation referred to in the question has not yet been acted on.
Reasons:
Review of IT-233R is in abeyance until a decision is reached concerning several cases currently before the courts.
TEI Conference
VII PART XIII NON RESIDENT TAX ISSUES
B. LEASES
QUESTION
In a technical interpretation dated March 28, 1991, Revenue Canada recommended that, when certain lease transactions are treated as financed purchases for the purposes of paragraph 18(1)(b) and subsection 16(1) of the Income Tax Act, the same assessing policy should be applied for all purposes of the Act, including Part XIII. Please provide an update on the status of the Department's recommendation. Has the recommendation been approved? If so, what is its effective date?
ANSWER
The letter in question refers to a proposed amendment to IT-233R. As stated in July 28, 1995, Income Tax Technical News No. 5, the revision to IT-233R has been deferred since several cases involving issues pertinent to this bulletin are currently before the courts. For this reason, the recommendation referred to in the question has not yet been acted on.
As soon as a decision is reached by the courts, it is expected that we will be in a position to complete our review of this bulletin.
Prepared by A. St-Amour
December 5, 1996