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: Whether Covenant provided to municipality in exchange for right to subdivide is a gift.
Position: Provide details by way of ruling request. Concern raised.
Reasons: Proposed transaction. Meaning of gift.
XXXXXXXXXX 2000-001646
March 31, 2000
Dear Sir:
Re: Gifts of Ecologically Sensitive Land
This is reply to your fax dated March 22, 2000 which deals with a specific transaction that your client is proposing to enter into. I am enclosing a copy of our IC70-6R3 which sets out the procedures involved in obtaining an advance income tax ruling with regard to a proposed transaction. As discussed (March 30 with XXXXXXXXXX) an advance ruling will only be provided prior to undertaking a transaction and the Rulings Directorate does not provide comment with respect to completed transactions. As noted in the IC Tax Service Offices consider requests with respect to completed transactions.
In reviewing your client's situation you should keep in mind that a gift is a voluntary transfer of property without valuable consideration which would not appear the case when a Covenant is granted to the a Municipality in exchange for the Municipality granting a right to subdivide. Also enclosed is a copy of our IC-110R3 which deals with gifts and official donation receipts for your information.
Should you wish to proceed with a request for a ruling it will be given priority. Our goal is to provide rulings on average within 60 days providing we have the necessary information.
We hope this information is of assistance.
Yours truly,
F. Lee Workman
Manager
Financial Institutions Team
Income Tax Rulings Directorate
Policy and Legislation Branch
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