3 September 1991 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657797
Extra import data
{
"field_external_guid": [
"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1991 [SE91_212.213 - JN91_146.148]/SE91_256 — Tenant Inducements"
],
"field_proprietary_citation": [],
"field_release_date_new": "1991-09-03 08:00:00",
"field_tags": []
}
Main text
Vancouver District Office Round Table - September. 1991
          Question

What are Revenue Canada's current assessing practices regarding tenant inducements? Have they changed since the 1987 Revenue Canada Round Table (Q.14)?

Department's Position

The 1987 Round Table question focused on the French Shoes case (French Shoes Ltd. v The Queen (86 DTC 6359), which dealt with an inducement payment received by a tenant on entering into a lease, and the characterization of an inducement payment as being on capital or income account. The question and response dealt with the Department's position on inducement payments received prior to May 23, 1985, the date of enactment of paragraph 12(1)( x). As noted by a Department spokesperson at the 1989 Corporate Management Tax Conference, for periods after May 22, 1985, "Paragraph 12(1)(x) is generally applicable to all inducement payments received by a tenant, subject to the exceptions in subparagraphs 12(1)(x)(v) to (viii)" (p. 8:9). The Department's position has not changed since that time.

Prepared by: J. Stalker
             Leasing and Financing Section
                                                           000256