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.
DM'S OFFICE Y.S. 94-1541D ADM'S OFFICE CENTRAL RECORDS RETURN TO RULINGS, ROOM 303, MET. BLDG. AUTHOR SUBJECT OF CORPORATE CASE FILE
November 21, 1994
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your letter of September 27, 1994, concerning the Department's position on reporting interest income earned on prepaid funeral deposits which is outlined, in part, in Interpretation Bulletin IT-246.
The Department's administrative practice concerning interest income earned on prepaid funeral deposits held in trust permits the reporting of all interest income accumulated on the prepaid funeral arrangements either by the contributor at the time of withdrawal upon cancellation of the contract, or by the funeral director at the time the monies were applied against the cost of the services provided by the funeral home. As you may be aware, Revenue Canada announced in 1992 that contributors to prepaid funeral deposits would be required to report interest income earned on an annual basis. However, as the Department of Finance subsequently informed us that it was considering an amendment to the Income Tax Act to legislate the Department's administrative practice, Revenue Canada decided not to change its position. I have enclosed the News Release dated October 21, 1994, issued by the Department of Finance, which announced the anticipated draft amendment effective for the 1993 taxation year.
I appreciate your interest in this matter and hope that I have addressed your concerns.
Yours sincerely,
Pierre Gravelle, Q.C.
Attachment
Catherine Bowen
957-2131
942654
November 9, 1994