Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Questions raised regarding the circumstances in which a formal consultation with the Department of Justice is pursued.
Position:
Reply provides general comments on the mandate of the Income Tax Rulings Directorate and under what circumstances formal consultations with the Departments of Justice and Finance will be pursued.
Reasons:
Where an issue appears to conflict with tax policy or where tax policy is unclear, consultations with the Department of Finance will be pursued. Where issues involve uncertainty over questions of law, consultations with the Department of Justice will be pursued.
Signed on December 10, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Martin Cauchon, Minister of National Revenue, has asked me to reply to your correspondence of October 26, 2001, concerning your advance income tax ruling request and your request to meet with a representative from the Department of Finance regarding section 7000 of the Income Tax Regulations.
The Canada Customs and Revenue Agency is responsible for administering and enforcing the Income Tax Act. It is the mandate of the Income Tax Rulings Directorate to interpret income tax law. The process can include consulting formally or informally with the Department of Finance when an issue appears to conflict with tax policy or when tax policy is unclear. Similar consultations can be undertaken with the Department of Justice when issues involve uncertainty over questions of law. However, when it is clear to the Income Tax Rulings Directorate that an interpretive position is sound in law and tax policy, formal consultations will not be pursued.
With regard to your proposed transactions, the Income Tax Rulings Directorate is of the view that the transactions do not comply with the law. As indicated in your letter, you may wish to seek legislative amendments to accommodate your proposed transactions.
The Department of Finance is responsible for tax policy and any proposed changes to the Income Tax Act, and may be able to provide further assistance. In this regard, I have forwarded a copy of your letter to Mr. Brian Ernewein, Director of the Tax Legislation Division at the Department of Finance, for his consideration.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Bill McCloskey Assistant Commissioner Policy and Legislation Branch
C.C. Mr.Brian Ernewein
Director
Tax Legislation Division
Department of Finance
16th Floor, East Tower
140 O'Connor Street
Ottawa, Ontario
K1A 0G5
N. Storry
957-3499
November 20, 2001