| 24(1) | File No. 3-3011 |
| P. Diguer | |
| (613) 957-2123 |
19(1)
June 11, 1990
Dear Sirs:
Re: Advance Income Tax Ruling 24(1)
This is in response to your letter of May 10, 1990, wherein you advised us that you wish to withdraw your request for an advance income tax ruling as outlined in your letter to us dated March 6, 1990.
In your letter you expressed the view that "the Rulings process should be available not only to remove uncertainty as to the strict letter of the law, but to provide also an administrative option which will ensure equitable results in situations where such is not contrary to the public interest".
We regret that we are unable to agree with your views on this matter. Information Circular 70-6R dated December 18, 1978 sets forth the guidelines under which advance income tax rulings are issued. As mentioned in paragraph 3 of the Circular, an advance ruling states how Revenue Canada will interpret specific provisions of the law in respect of transactions that the taxpayer is contemplating.
The reference in paragraph 3 to "the law" necessarily means the provisions of the Income Tax Act that are in force at the relevant time "Proposed" legislation or draft legislation that has been tabled in the House of Commons is not law and will not be law until enacted by Parliament. Because the power to impose, or not to impose, taxes lies only with Parliament, this Department may not administer the provisions of the Income Tax Act on the assumption that proposed legislation has been enacted.
In light of the above and as previously discussed, a favourable ruling in respect of this matter cannot be issued at this time. Accordingly, our file concerning this matter has now been closed and a billing for the time spent will follow under separate cover.
Yours truly,
for DirectorReorganization and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch