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'S OFFICE
DEPUTY MINISTER
ASSISTANT DEPUTY MINISTER
RETURN TO RULINGS, 15TH FLOOR, 25 NICHOLAS STREET
February 17, 1995
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My dear Colleague:
I am writing in reply to your letter of February 6, 1995, regarding the elimination of the $100,000 lifetime capital gains exemption contained in the Budget of February 22, 1994, in particular, its impact on fishers who may wish to avail themselves of the licence retirement component of The Atlantic Groundfish Strategy (TAGS). Specifically, you asked for confirmation that the full proceeds from the licence retirement can be classified as proceeds from the disposition of an eligible capital property.
I can confirm that any payment to be made to a fisher to retire a fishing licence or other right or privilege to commercially fish, would be an eligible capital amount. Accordingly, fishers will be entitled to use their capital gains exemption, provided the appropriate elections are made when filing their 1994 income tax returns.
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I trust that this is the information that you require.
Yours sincerely,
David Anderson, P.C., M.P.
MURRAY BRAKE
FEBRUARY 10, 1995
4-950379.MB
957-2133