| July 14, 1989 | |
| To: Publications Division | From: Small Business and |
| R.C. Shultis | General Division |
| Director | A. Humenuk |
| 957-2135 | |
| File No. 0-0147 |
Subject: Project 1513 Deferred Cash Purchase Tickets for Grain Revision of IT-184R
We have reviewed our research files and, other than the issue discussed below, can find nothing significant which would warrant further explanation in the bulletin.
We do not feel that a special release be issued to reflect the concern of Audit Applications Division. We suggest the following addition to paragraph 8:
"Likewise, where the elevator operator makes a deduction form the gross purchase price on account of a prior advance under the Prairie Grain Advance Payments Act, it is the gross amount of the purchase price as stated on the ticket which is included in income in the year immediately following the year the ticket is received".
The intent of subsection 76(4) of the Act was to all farmers who have received a deferred cash purchase ticket in respect of grain delivered to a primary elevator or process elevator, to defer the receipt of income for one year in order to remove any incentive for them to delay delivery of the grain to the Canadian Wheat Board to the following year It is, therefore, quite consistent with that intent that a farmer's indebtedness be reduced in the year without a corresponding income inclusion in the same year. We do not feel that a referral to Current Amendments and Regulations Division is warranted on this issue. It is our view that the lean of funds and repayment thereof under the Prairie Grain Advance Payments Act is a separate transaction from the acceptance of a deferred cash purchase ticket for the sale of grain in the same manner as is the disposition of a deferred cash purchase ticket once received as noted in paragraph 7 of the bulletin.
We trust our comments will be of assistance to you.
M.A.G. Hiltzfor Director GeneralSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch