| 19(1) | File No. 5-9437 |
| J.A. Szeszycki | |
| (613) 957-2103 | |
| February 15, 1990 |
Dear Sirs:
Re: Voluntary Disclosure
We are responding to your letter of January 16, 1990 concerning the application of subsection 110.6(6) of the Income Tax Act (the "Act") in circumstances where a previously unreported capital gain is disclosed to the Department voluntarily.
You have asked whether subsection 110.6(6) of the Act is a penalty section. Subsection 110.6(6) of the Act is not a penalty provision as such since it does not levy an additional amount to be paid. This provision is of the type that merely clarifies that under certain circumstances the deduction, described earlier in the section, is unavailable.
With respect to the application of subsection 110.696) of the Act to previously unreported capital gains disclosed voluntarily, the Department has taken the position that the capital gains deduction as otherwise determined will not be denied.
We hope our comments have clarified the Department's position.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch