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.
May 30, 2000
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter of April 27, 2000, regarding the possible issuance of an interpretation bulletin on the reasonable expectation of profit test as it relates to the horse racing industry.
Over the years, the Canada Customs and Revenue Agency (CCRA) has issued a number of interpretation bulletins that deal with specific income tax issues for farmers. Since the definition of farming in the Income Tax Act includes the maintaining of horses for racing, these bulletins are designed to apply generally to all types of farming operations.
I am attaching a copy of Interpretation Bulletin IT-322R, Farm Losses, which deals with certain farming losses under the Act. Paragraph 4 of this bulletin discusses the reasonable expectation of profit test and reflects the views of the CCRA for all types of farming operations. These comments were developed based on jurisprudence and are currently used by the Audit Division of our tax services offices when a taxpayer's farming operation is reviewed. There is currently no plan to issue any other interpretation bulletin on this subject. The publications of the CCRA can also be found on our Internet site at www.ccra-adrc.gc.ca.
I trust that my comments will assist you in replying to your constituent.
Your sincerely,
Martin Cauchon
Attachment
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