September 19, 1989
19(1)
This is in reply to your letter of April 17, 1989 addressed to R.M. Beith in which you expressed certain concerns with respect to the 180 day requirement in subsection 78(4) of the Income Tax Act.
You have indicated that the 180 day requirement is a real entrapment for some corporate taxpayers who take it as being a six month requirement which may range from 181 to 184 days depending on the months involved. In this connection you asked that we consider certain measures which would provide relief for these taxpayers.
As this requirement in the Act is quite explicit, it is not possible for us to take another position in this matter. Consequently, we have discussed this matter with the Department of Finance. They note that this 180 day requirement applies to all taxpayers within the circumstances targeted and not only to corporate taxpayers. In addition, there are many other timing provisions in the Act and Regulations which use a specified number of days. In conclusion, Finance is of the view that in policy terms the standard 180 days is fairer and more equitable for all taxpayers. Thus, they do not consider this to be a matter for corrective retroactive amendment.
We trust that you will find the above comments helpful.
Yours sincerely,
B.J. Bryson Acting Director Current Amendments and Regulations Division
WRMcC/jab