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.
MINISTER/DEPUTY MINISTER'S OFFICE 97-01274M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER
April 1, 1997
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Jane Stewart, Minister of National Revenue, has asked me to respond to your letter of January 30, 1997, concerning the tax policies relating to the demolition of heritage buildings.
The Department of National Revenue is responsible for applying the provisions of the Income Tax Act (the "Act") as enacted by Parliament. This responsibility includes determining the tax consequences of the demolition of buildings. In this respect, you should note that, although the demolition of a building that is a depreciable property may give rise to a terminal loss, there are provisions in the Act which may restrict the potential terminal loss and possibly recapture capital cost allowances previously taken. These provisions are discussed in paragraphs 9 to 16 of Interpretation Bulletin IT-220R2, a copy of which is enclosed.
Any changes to the rules relating to terminal losses would require an amendment to the Act which falls within the purview of the Department of Finance. Since the Department of Finance has previously been made aware of concerns similar to those you raise, I am certain that your views will receive every consideration.
I wish to thank you for bringing your views to our attention.
Yours sincerely,
Rob Wright
Attachment
C. Chouinard
957-2098
March 13, 1997