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 the positions as stated in our letter of January 26, 2000 (#992848) in respect of Interpretation Bulletin IT-373R2 would remain applicable.
Position: Yes. However, with respect to the five factors (a) to (e) listed on page 2 of the January 26 letter, item (b) (i.e., the land was cleared to improve or maximize the value of the land) can be deleted as it is already encompassed by (a). Also, the statement in "(d) the price of timber is fixed; and" should be replaced by "( c) the total contract price for the timber sold is fixed, for example, the contract for sale of timber specifies the consideration computed by reference to the timber actually removed within a specified time or from a specified area; and". Interpretation Bulletin IT-373R2 will be revised in due course.
Reasons: This is to clarify our interpretations and to take into consideration the impact of the recent court decisions of the cases of Jens Larsen and Desrosiers.
2000-003934
XXXXXXXXXX Peter Lee
(613) 957-8977
Attention: XXXXXXXXXX
October 12, 2000
Dear Sirs:
Re: Timber Sales
This is in reply to your facsimile of July 26, 2000 wherein you requested confirmation that the comments in our letter of January 26, 2000 (our file number 992848) are still applicable.
We confirm that the comments in our letter of January 26, 2000 are still applicable. However, with respect to the five factors (a) to (e) listed on page 2, item (b) can be deleted as it is already encompassed by (a). Also, the statement in "(d) the price of timber is fixed; and" should be replaced by "( c) the total contract price for the timber sold is fixed, for example, the contract for sale of timber specifies the consideration computed by reference to the timber actually removed within a specified time or from a specified area; and".
Interpretation Bulletin IT-373R2 will be revised in due course.
If we can be of any further assistance, please contact the writer.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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