3 December 1990 External T.I. 9030685 F - Advance Payments in respect of Grain Inventory on Hand

By services, 18 January, 2022
Official title
Advance Payments in respect of Grain Inventory on Hand
Language
French
CRA tags
n/a
Document number
Citation name
9030685
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
632040
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-12-03 07:00:00",
"field_tags": []
}
Main text
19(1) 5-903068
  Bill Guglich
  (613) 957-2102

December 3, 1990

19(1)

This is in reply to your letter of October 26, 1990, concerning the tax treatment of advance payments received in respect of grain inventory on hand.

Our position as set out on page 7 of the 1989 Farming Income Tax Guide continues to apply for the 1990 taxation year. As a result advance payments received, by farmers on their undelivered grain, under the Prairie Grain Advance Payment Act and the Advance Payments for Crops Act will be considered loans and not treated as income in the fiscal period received. The full amount of the sale of the grain must be included in income in the fiscal period the sale actually takes place.

We trust this will be of assistance to you.

Yours truly,

for DirectorBusiness and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch