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.
Principal Issues:
IT-346R and the reporting method with respect to commodity trading.
Position:
The taxpayer will be permitted to change his method of reporting his commodity results from the capital basis to the income basis. However, after making such a change he must then report on that basis for subsequent years.
Reasons:
XXXXXXXXXX 970090
Attention: XXXXXXXXXX
April 10, 1997
Dear Sirs:
Re: Interpretation Bulletin IT-346R
This is in reply to your letter of January 7, 1997 in which you request a technical interpretation with respect to paragraphs 7 and 8 of IT-346R.
It is the Department's practice to permit a taxpayer who has been reporting his commodity results on the capital basis to change to the income basis. However, after making such a change he must then report on that basis for subsequent years, as indicated in paragraph 8 of IT-346R.
It is also our opinion that where one or more members of a related group are accorded income treatment, then all members of the related group will be required to use the income treatment in reporting gains or losses.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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