Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Does the Rulings Directorate provide entity classification rulings.
Position: Yes
Reasons: September 2012 shift in policy.
2012 Ontario Regional CTF Conference
Income Tax Rulings - entity classification
Question
In 2010 a decision was made by Income Tax Rulings Directorate to discontinue the practice of providing income tax rulings pertaining to the classification of entities that are created under foreign laws for the purposes of the Act. The decision was controversial and many tax practitioners made submissions encouraging the Directorate to reconsider its decision. Have there been any developments in this regard?
CRA Response
The Income Tax Rulings Directorate has reconsidered its 2010 decision and is again prepared to entertain ruling requests on entity classification. Taxpayers wishing to request an advance income tax ruling on the classification for the purposes of the Act of a particular foreign entity should include with their request a complete description of the characteristics of the entity, their analysis as to its proper classification, and a translated copy of both the legislation under which the entity was created and its organizational documents.
Olli Laurikainen
2012-046302
October 30, 2012
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