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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Canadian Egg Marketing Agency
320 Queen Street
Place de Ville 940268
Ottawa, Ontario A.M. Brake
K1R 5A3
Attention: Chris Olney, Finance Supervisor
March 21, 1994
Dear Sirs:
Re: AGR-1 Information Slips, Quota Retirement Program
This is in reply to your letter of January 17, 1994, wherein you asked for clarification as to whether AGR-1 Information Slips should be issued to producers who are in receipt of payments from the sale of a portion of their quota under the Quota Retirement Program to another producer.
Income Tax Regulation 234 which defines "farm support payments" to include
(a)a payment that is computed with respect to farm acreage or other area of land,
(b)a payment that is made in respect of a unit of commodity or animal grown, raised or disposed of, and
(c)a rebate of or compensation for all or a portion of
(i)a cost or capital cost incurred in respect farming, or
(ii)unsowed land or crops, destroyed crops or output or destroyed animals.
It is our understanding that such payments would be considered to be the proceeds from the sale of an eligible capital property which could give rise to income under section 14 of the Income Tax Act. However, in our view, as expressed in a recent telephone conversation (Brake/Olney), there would not be any farm support payments received by the producer in respect of the sale and AGR-1 Slips would not be required.
We trust that we have clarified this matter.
Yours truly,
R. Albert
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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