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 regulation will be amended to allow for the late filing and amending of the capital gains election
Position:
no
Reasons:
the capital gains provision already allow for this. Finance made it clear that the regs were not meant to apply to elections for which specific provision for such changes already existed in the Act.
MINISTER/DEPUTY MINISTER'S OFFICE 98-00034M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER
March 11, 1998
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter of December 15, 1997, regarding some of your constituents' concerns about the late filing of capital gains elections. It is always a pleasure for me to address the concerns of residents of British Columbia.
I have noted your reference to the fairness legislation in the Income Tax Act which provides for the filing of late and amended elections as well as for the revocation of valid elections previously made. When this legislation was introduced, the Department of Finance made it clear that the legislation was not meant to apply to elections for which specific provision for such changes already existed in the Act. As the capital gains provisions in the Act include specific provisions for the filing of late or amended elections, as well as for revocation, the capital gains election is not one to which this fairness legislation is meant to apply.
An amendment to the existing provisions for the filing of late or amended capital gains elections, or for the revocation of such elections, would be required to provide for the extensions on filing suggested by you. As such amendments are the responsibility of the Honourable Paul Martin, Minister of Finance, I have forwarded a copy of your letter to Mr. Martin for his consideration.
I trust my comments have addressed your concerns.
Yours sincerely,
Herb Dhaliwal, P.C., M.P.
Sandra Short
January 26, 1998
957-2136